Margin Funding

Why is my MTF position squared off/closed/sold by ICICI Direct?

Here are a few possible scenarios on why your MTF position might be squared off:

1. Position Expiry: You can hold the stocks bought in MTF for a period of 360 days. Any MTF position held for period beyond this time limit will be automatically squared off/closed.

2. Margin shortfall:

a. Every MTF position has a corresponding trigger price associated with it which can be viewed on the Open Position page -> MTF tab on Website or Mobile App.
b. If the LTP (Last traded price) of the stock falls below the Trigger Price, position will fall under margin shortfall.
c. Such positions will be automatically squared off/closed by the system unless sufficient margin is allocated in the Equity Segment.