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Market Intelligence › Basic Terminologies
How intraday margin reporting works and who the penalty falls on
Published by The Retail Trader · JUL 27, 2026 · Derivatives (F&O)
Margin is not calculated at the end of the day. It is calculated from snapshots taken at random times during the day. That is why a position that looks fine by evening can still create a shortfall.
The clearing corporation takes several snapshots of every client's margin and available funds during the day. If the required margin was higher than the available funds at that moment, a shortfall is recorded.
The penalty for a shortfall is charged to the broker, and the broker recovers it from the client. The record appears in your ledger.
These are the most common causes:
• The position was taken first and the funds were transferred later.
• Volatility rose and the margin increased in the middle of the day.
• The hedge leg was closed first, so the margin on the naked position jumped immediately.
• The loss in one segment ate into the available margin of another segment.
When closing a hedged position, always close the naked leg first and the hedge afterwards. Doing it the other way round makes your margin requirement several times higher for a few minutes, and the snapshot can land in exactly that minute.
This article is for educational purposes only. It is not a buy or sell recommendation, not a claim of guaranteed returns, and not advice. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.