What is a Margin Statement?

A Margin Statement is a report that provides a detailed breakdown of the following:

1. Total Margin Available: The sum of all available margins across your trading accounts.
2. Margin Required on Open Positions: Includes margin requirements for open positions, including Mark-to-Market (MTM) requirements.
3. Final Margin Status: Indicates whether there is a shortfall or excess in your margin account.

This statement is sent to your registered email whenever you trade.

Sample Margin Statement

Below is an example of what a daily margin statement looks like:

Understanding the Margin Statement

Segment

This refers to the trading segment in which you have executed trades. Below are the common segments:

Trade Day

The date on which the trade is executed.

Funds (A)

This represents your fund balance without considering unsettled credits and debits. The balance reflects only clear credits where pay-in and payout obligations with the Exchange have been settled.

Example:

• For Equity Cash Trades: Take the closing balance of your ledger on T-1 day and add or subtract any funds deposited or withdrawn.
• For Equity Cash and F&O Trades:
  1. Take the closing balance on T-1 day.
  2. Add back any deposited funds and subtract withdrawn funds.
  3. Add back your F&O Obligation on T day.

The total will reflect in the funds column.

Total Margin Available (F)

This is the total of all clear margins available up to T day.

Total Upfront Margin (G)

This represents the minimum upfront margin required to take a position. The calculation varies by segment:

Consolidated Crystallized Obligation / MTM (H)

This includes MTM loss margin or Option Premium Payable in the respective segment, representing the amount due or non-upfront margin collectible until T+1 day.

Delivery (I)

This is the physical delivery margin charged by the Exchange on In-The-Money (ITM) Options Contracts held until expiry. It starts from expiry minus 4 days.

Excess/Shortfall w.r.t Requirement by Exchange/NSCCL (K)

This column shows the difference between 'Total Margin Available' and 'Total Requirement.'

Margin Status (Balance with Member/Due from Client) (M)

This shows the total free balance available for new trades on the next trading day. A negative value in Column K indicates a shortfall in the margin.

Important Points to Note:

• T+1 Sale Proceeds: When you sell shares, the credit from the sale is reflected on T+1 day. The margin statement for T day might indicate a margin shortfall, which will automatically be adjusted once the sale proceeds are received.

• Separate Ledgers: Brokers maintain separate ledgers for each segment. However, as an industry norm, all pay-ins are typically posted to the 'NSE EQ' segment, while debits are posted in their respective segment ledgers and shown in the margin statement.