The margin requirement depends on the stock being traded and is governed by SEBI and exchange guidelines. Typically, the initial margin ranges to 50% of the trade value.

If you don’t meet the margin call within the stipulated time, the broker may square off (sell) some or all of your pledged securities to recover the shortfall.

A margin call occurs when the margin in your account falls below the minimum required level due to market fluctuations. You’ll be required to add funds or sell securities to…