Margin Call Stress (MTF)
How far a position bought with borrowed money (MTF) can fall before it breaches your broker's maintenance margin, and before your own money is gone. Enter your broker's own figures.
No rates are filled in for you: maintenance margin and MTF interest differ by broker and by stock.
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What a margin call is
With MTF, the broker lends part of the purchase price and holds the shares as collateral. The loan does not shrink when the price falls, so every rupee of loss comes out of your own money first. When your equity drops below the broker's maintenance margin, the broker asks you to add funds — a margin call.
If you don't add funds in the time the broker allows, the broker can sell your shares to recover the loan, at whatever price the market offers then. You remain liable for any shortfall if the sale doesn't cover the loan and interest.
The call level is not a floor. Prices can open below it after news or overnight, and the sale happens at that lower price. In MintX's support-breakdown study, a stop placed 1% under support filled at a lower opening price in 5.4% of breaks — a past measurement, not a forecast.
Arithmetic only: no forecast and no advice. Interest is simple (annual rate ÷ 12) on the borrowed amount; your broker may compute it daily and add charges. MintX cannot place orders or sell holdings.
Margin Call Stress (MTF)
A margin call stress calculator shows how much a position bought partly with borrowed money (MTF) can fall before your equity drops to the broker's maintenance margin, and how much before your own money is gone. The loan does not fall with the price, so leverage magnifies every move on your own capital.
Equity % = (V − B) ÷ V; fall to margin call = 1 − B ÷ (V × (1 − m)); fall to wipe-out = 1 − B ÷ V; monthly interest = B × annual rate ÷ 12. V = position value, B = borrowed, m = maintenance margin.
Input: ₹1,00,000 position, ₹25,000 own money, ₹75,000 borrowed, 20% maintenance margin
Result: Equity 25%; margin call after a 6.25% fall; own money wiped out after a 25% fall
What happens if I don't meet a margin call?
The broker can sell some or all of the pledged shares to bring the account back within its margin rules, at the market price at that time. Any shortfall after the sale is still owed.
Can the loss be bigger than the margin-call level suggests?
Yes. If the price opens well below the call level, for example after overnight news, the shares are sold at that lower price, and the loss can exceed what the call level implies.
Margin Call Stress Calculator: how it works
With margin trading funding (MTF) the loan stays fixed while the shares move, so losses come out of your own money first. Equity is position value minus the amount borrowed. When equity as a share of position value falls to the broker's maintenance margin, the broker issues a margin call and can sell the shares if funds are not added. Prices can gap through that level.
Formula
Equity % = (V − B) ÷ V · Fall to margin call = 1 − B ÷ (V × (1 − maintenance %)) · Fall to wipe-out = 1 − B ÷ V · Monthly interest = B × annual rate ÷ 12, where V is position value and B the amount borrowed.