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Discover what a daily margin statement shows to learn how brokers report exposure, requirements, and risks for active trading positions.
In the world of equity and derivatives trading, margin is one of the most important components that determines whether positions stay safe or fall into risk. To ensure transparency and protect traders, brokers are required to send a Daily Margin Statement that details all relevant margin-related information for the day. This statement helps you understand how much margin you used, how much is available, whether there is a shortfall, and whether your positions pose any risk of liquidation.
A Daily Margin Statement is a report sent by your stockbroker that provides a detailed summary of all margin-related activities in your trading account for the day. It includes information about:
Funds and collateral available
Margin used for existing positions
Excess margin or shortfall
Segment-wise exposure (Equity, F&O, Currency, Commodity)
Pledging and unpledging details
Collateral haircuts
Peak margin utilisation
Ledger balance and obligations
The purpose of this statement is to provide a clear view of trading risks and margin status.
SEBI mandates all registered brokers to send margin statements at the end of the day to maintain transparency, accountability, and investor protection. These statements ensure that traders:
Are aware of their margin utilisation
Understand their exposure and risks
Can add on funds to avoid penalties or forced square-offs
Receive accurate reporting of their funds and collateral
Have documented proof of all margin-related transactions
This requirement came into effect following SEBI’s peak margin rules, which tightened the norms for intraday and derivatives risk management. Sending a daily margin statement helps the regulator ensure brokers do not misuse client funds or provide unregulated leverage.
A daily margin report typically includes several key sections. The exact format may differ from broker to broker, but the following components are standard across the industry:
Shows your opening funds, credits, debits, and balance carried forward.
Includes pledged securities, their market value, and applicable haircuts. Only the post-haircut value counts as usable collateral.
Describes the margin blocked for:
Futures positions
Options writing
Intraday leverage
Delivery margin
MTM losses
Indicates the highest margin used during the day—important for SEBI compliance.
If applicable, the statement flags any shortfall, which could attract penalties if not resolved.
Detailed breakup of:
SPAN (risk-based) margin
Exposure (additional) margin
Total margin requirement
Shows securities pledged or unpledged during the day along with haircut percentages.
Reflects daily profit or loss on derivative futures positions.
Shows how much free balance you can use for fresh trades.
Understanding each section helps you stay compliant and avoid unexpected liquidation or penalties.
In India, NSE brokers must follow SEBI and clearing corporation guidelines when preparing margin statements. Key regulatory points include:
Brokers must send the margin statement by the end of each trading day.
The statement must clearly distinguish between funds and collateral.
Peak margin reporting is compulsory for all traders.
Collateral value must be shown after haircut.
Derivatives margin must reflect SPAN + Exposure requirements.
Any shortfall must be highlighted for penalty calculation.
Statements must be delivered via SMS, email, or both.
These norms ensure the statement is accurate, tamper-proof, and aligned with clearing corporation data.
Below is a simplified, sample-style breakdown of what a typical statement might contain:
Funds Summary
Opening Balance: ₹75,000
Pay-in / Pay-out: ₹10,000
Closing Balance: ₹85,000
Collateral Summary
Pledged Shares Value: ₹1,20,000
Haircut Applied: 20%
Net Collateral Available: ₹96,000
Margin Requirement (F&O Segment)
SPAN Margin: ₹45,000
Exposure Margin: ₹15,000
Total Requirement: ₹60,000
Utilisation Summary
Margin Used: ₹60,000
Peak Margin Reported: ₹62,000
Free Margin Remaining: ₹1,21,000
Shortfall
None
This is an illustrative example—actual statements may include segment-wise segmentation and detailed line items.
Many traders misread or overlook important parts of their daily margin statement. The most common errors include:
Only the post-haircut value counts as margin.
Peak margin is calculated intra-day, not at EOD. Violations attract penalties.
Margin availability depends on settlement rules, segment, and blocked amounts.
MTM losses reduce available margin instantly, even before the EOD statement.
A small shortfall can escalate into a penalty if not corrected immediately.
Avoiding these mistakes helps traders comply with SEBI norms and manage risk effectively.
A daily margin statement is one of the most important risk management tools in trading. It keeps traders informed about their fund balance, collateral, margin utilisation, and regulatory compliance status. Reading the statement carefully helps you:
Avoid margin shortfalls
Prevent penalties
Manage risk proactively
Understand your true trading capacity
Protect positions from forced liquidation
They provide a summary of margin and exposure, including derivatives and leveraged instruments. A clear understanding of your margin status often makes the difference between safe trading and unexpected losses.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
A daily margin statement typically contains ledger balances, the value of collateral, SPAN and exposure margin details, peak margin utilised during the day, mark-to-market outcomes, and any margin shortfall that requires attention.
The daily margin statement is sent by brokers at the end of each trading day, generally through email or SMS, in accordance with SEBI guidelines.
A daily margin statement is important because it helps monitor trading risk, ensures compliance with margin rules, prevents penalties, and supports effective management of trading funds and available limits.
In the event of a margin shortfall, additional funds must be deposited promptly. Failure to do so may lead to penalties or the broker closing positions to cover the deficit.
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