Angel One’s policy on margin calls helps traders manage their borrowed funds safely. When you trade on margin, you borrow money from Angel One to buy more shares than you could with your own money. But if the market moves against you, your account value may fall below the required limit. This triggers a margin call. Angel One will ask you to add more funds or sell some shares to maintain the required margin level. This helps reduce risk for both you and the broker.

What is a Margin Call in Angel One?

A margin call happens when your account’s equity falls below the minimum margin required by Angel One. This means you don’t have enough funds or securities to cover the borrowed amount. When this happens, Angel One will notify you to add money or reduce your positions by selling shares. If you do not respond in time, Angel One has the right to sell your holdings to recover the loan amount.

How Does Angel One Notify Margin Calls?

Angel One sends margin call notifications through SMS, email, and app alerts. They keep you informed so you can act quickly. Notifications include details of the amount needed and the time limit to respond. It is important to check these messages regularly to avoid automatic liquidation of your shares.

What Happens if You Don’t Meet a Margin Call?

If you don’t add funds or reduce your positions within the given time, Angel One may sell your shares without further notice. This is to protect both your account and the broker from bigger losses. It is important to keep enough balance or securities to avoid forced selling, which can happen at unfavorable prices.

How to Avoid Margin Calls on Angel One?

To avoid margin calls, always maintain a healthy margin balance in your account. Keep track of market changes that may affect your holdings. Use stop-loss orders to limit losses and avoid excessive borrowing. Angel One also provides tools and alerts to help you monitor your margin status. Regularly reviewing your portfolio helps you stay safe from margin calls and sudden liquidations.

Important Points to Remember

Margin trading can increase profits but also losses. Angel One’s margin call policy is designed to protect you from heavy losses. Always be careful when trading on margin. Understand your limits and risks. Make sure to respond to margin calls promptly to avoid forced selling. Use the tools provided by Angel One to monitor your margin and manage your investments wisely.