{"id":26558,"date":"2026-04-20T08:43:55","date_gmt":"2026-04-20T08:43:55","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?post_type=trading&#038;p=26558"},"modified":"2026-04-17T08:46:24","modified_gmt":"2026-04-17T08:46:24","slug":"what-is-var-elm-in-mtf","status":"publish","type":"trading","link":"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/","title":{"rendered":"What is VAR + ELM in MTF? How Margin Requirement is Actually Calculated"},"content":{"rendered":"\n<p>When you start trading, there are two ways to move ahead. One is where you pay the full amount and use your own capital. The other is where you use margin trading to take larger positions by investing only a part of the total value.<\/p>\n\n\n\n<p>This is where you need to understand how MTF margin is calculated. In the simplest terms, it is based on a set of risk measures used by exchanges to decide the minimum amount you need to bring in.<\/p>\n\n\n\n<p>But when it comes to the intricate details, you must also understand the concept of the VAR ELM MTF well. So, if you are an investor planning on your next steps, then read this guide. Explore all the details you need about VAR margin and know the formula well.\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#What_is_VAR_ELM_in_MTF\" title=\"What is VAR + ELM in MTF?\">What is VAR + ELM in MTF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#MTF_Margin_Requirement_Formula\" title=\"MTF Margin Requirement Formula\">MTF Margin Requirement Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#How_MTF_Margin_is_Calculated\" title=\"How MTF Margin is Calculated\">How MTF Margin is Calculated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#Where_to_Find_MTF_Eligible_Stocks_and_Brokers_in_India\" title=\"Where to Find MTF Eligible Stocks and Brokers in India\">Where to Find MTF Eligible Stocks and Brokers in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#What_Impacts_MTF_Margin_Requirement\" title=\"What Impacts MTF Margin Requirement\">What Impacts MTF Margin Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#Advantages_of_VAR_ELM_in_MTF\" title=\"Advantages of VAR + ELM in MTF\">Advantages of VAR + ELM in MTF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#Limitations_of_VAR_ELM_in_MTF\" title=\"Limitations of VAR + ELM in MTF\">Limitations of VAR + ELM in MTF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/trading\/what-is-var-elm-in-mtf\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-var-elm-in-mtf\"><span class=\"ez-toc-section\" id=\"What_is_VAR_ELM_in_MTF\"><\/span>What is VAR + ELM in MTF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.pocketful.in\/mtf\">MTF <\/a>margin is not decided randomly. It is calculated using specific risk measures defined by exchanges, and the two most important ones are VAR and ELM.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VAR (Value at Risk)<\/strong> estimates how much a stock can fall under normal market conditions.<\/li>\n\n\n\n<li><strong>ELM (Extreme Loss Margin)<\/strong> adds an extra layer of protection for sudden or unexpected market movements.<\/li>\n<\/ul>\n\n\n\n<p>Together, <strong>VAR + ELM<\/strong> form the minimum margin requirement. This is the base amount you must bring in when using MTF, and it is the starting point for how <a href=\"https:\/\/www.pocketful.in\/calculators\/mtf-calculator\">MTF margin is calculated<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-mtf-margin-requirement-formula\"><span class=\"ez-toc-section\" id=\"MTF_Margin_Requirement_Formula\"><\/span>MTF Margin Requirement Formula<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To understand the calculation clearly, it is important to first look at the basic formula used in MTF. The margin requirement is derived from exchange-defined risk measures and forms the base amount you must bring in.<\/p>\n\n\n\n<p><strong>MTF Margin Requirement = VAR + ELM + Additional Margin (if any).<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>VAR<\/strong> is the Value at Risk margin.<\/li>\n\n\n\n<li><strong>ELM<\/strong> is the Extreme Loss Margin.<\/li>\n\n\n\n<li><strong>Additional Margin<\/strong> may be added by the broker based on internal risk policies.<\/li>\n<\/ul>\n\n\n\n<p>In most cases, <strong>VAR + ELM<\/strong> form the minimum requirement, and any extra margin is added on top of this base.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-mtf-margin-is-calculated\"><span class=\"ez-toc-section\" id=\"How_MTF_Margin_is_Calculated\"><\/span>How MTF Margin is Calculated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The calculation follows a simple structure. It starts with the margin percentage and then applies it to the total trade value to find how much you need to invest.<\/p>\n\n\n\n<p id=\"h-1-identify-var-elm-percentage\"><strong>1. Identify VAR + ELM Percentage<\/strong><\/p>\n\n\n\n<p>Each stock has a predefined <strong>VAR + ELM<\/strong> percentage set by the exchange. This becomes the base margin requirement.<\/p>\n\n\n\n<p id=\"h-2-calculate-total-trade-value\"><strong>2. Calculate Total Trade Value<\/strong><\/p>\n\n\n\n<p>Multiply the number of shares with the stock price to get the total value of the trade.<\/p>\n\n\n\n<p id=\"h-3-apply-margin-requirement\"><strong>3. Apply Margin Requirement<\/strong><\/p>\n\n\n\n<p>Multiply the total trade value with the VAR + ELM percentage.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Required Margin = Trade Value \u00d7 (VAR + ELM %)<\/strong><\/li>\n<\/ul>\n\n\n\n<p id=\"h-4-adjust-for-broker-margin-if-any\"><strong>4. Adjust for Broker Margin (if any)<\/strong><\/p>\n\n\n\n<p>If the broker adds any extra margin, it is included over and above this amount.&nbsp;<\/p>\n\n\n\n<p>This is how the margin requirement is calculated using the VAR ELM MTF structure.<\/p>\n\n\n\n<p id=\"h-example\"><strong>Example<\/strong><\/p>\n\n\n\n<p>Say you are planning to buy a stock trading at \u20b9500, and you want to purchase 200 shares.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total trade value = \u20b9500 \u00d7 200 = \u20b91,00,000<\/li>\n<\/ul>\n\n\n\n<p><strong>For this stock, assume:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>VAR = 12%<\/li>\n\n\n\n<li>ELM = 4%<\/li>\n\n\n\n<li>Total margin requirement = 16%<\/li>\n<\/ul>\n\n\n\n<p><strong>Now,<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your investment = \u20b91,00,000 \u00d7 16% = \u20b916,000<\/li>\n\n\n\n<li>Broker funds = \u20b984,000<\/li>\n<\/ul>\n\n\n\n<p>So instead of paying the full \u20b91,00,000, you enter the trade with \u20b916,000, and the remaining amount is funded. This is how the calculation works in a real trading scenario.<\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-mtf-pay-later\/\">What is Pay Later (MTF) &amp; Steps to Avail Pay Later?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-where-to-find-mtf-eligible-stocks-and-brokers-in-india\"><span class=\"ez-toc-section\" id=\"Where_to_Find_MTF_Eligible_Stocks_and_Brokers_in_India\"><\/span>Where to Find MTF Eligible Stocks and Brokers in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before placing an MTF trade, you need clarity on two things. Whether the stock is eligible for margin trading, and how much margin will actually be required. Both depend on exchange rules and the broker you choose.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Check the MTF Eligible Stocks List<\/strong>: Each broker provides a list of stocks that are approved for margin trading. This <a href=\"https:\/\/www.pocketful.in\/mtf\/list\">MTF eligible stocks list<\/a> includes stocks that meet liquidity and risk criteria. If a stock is not part of this list, you cannot use margin trading for it.<\/li>\n\n\n\n<li><strong>Understand VAR Margin on NSE and BSE<\/strong>: Once the stock is eligible, the next step is to understand its risk level. This is defined through the VAR margin NSE BSE, which is based on how much the stock can move under normal conditions. A higher VAR leads to a higher margin requirement.<\/li>\n\n\n\n<li><strong>Compare MTF Broker India Options<\/strong>: Different platforms offer MTF with slightly different terms. While the base margin comes from the exchange, factors like interest rates, stock coverage, and additional buffers can vary across an MTF broker India.<\/li>\n\n\n\n<li><strong>Use This Information Before You Trade<\/strong>: Looking at just one factor is not enough. You need to check eligibility, understand the margin requirement, and then evaluate the broker terms. This gives you a clearer picture of how much you need to invest and how the trade will work in practice.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-impacts-mtf-margin-requirement\"><span class=\"ez-toc-section\" id=\"What_Impacts_MTF_Margin_Requirement\"><\/span>What Impacts MTF Margin Requirement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MTF margin is not fixed because risk is not the same for every stock. Exchanges calculate margins based on how risky a stock is to hold, especially when leverage is involved. This is why you will see different margin requirements across stocks.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Stock Volatility<\/strong>: If a stock moves sharply within short periods, the risk of loss increases. To manage this, exchanges increase the VAR component, which directly raises the margin requirement.<\/li>\n\n\n\n<li><strong>Liquidity of the Stock<\/strong>: Stocks that are actively traded are easier to buy and sell. Low liquidity stocks can be difficult to exit during sudden market moves, so higher margins are applied to reduce risk.<\/li>\n\n\n\n<li><strong>Market Conditions<\/strong>: In stable markets, margins remain relatively steady. During uncertain or highly volatile phases, exchanges increase margins across stocks to protect against sudden price swings.<\/li>\n\n\n\n<li><strong>Stock Type<\/strong>: Large, well-established companies usually have lower margins because their price movements are relatively stable. Smaller or less stable companies carry higher margins due to higher risk.<\/li>\n\n\n\n<li><strong>Broker-Level Adjustments<\/strong>: Even after exchange margins are defined, brokers may add a small buffer. This depends on their internal risk policies and the kind of exposure they are willing to take.<\/li>\n<\/ol>\n\n\n\n<p>All these factors together influence the final margin requirement, which is why it keeps changing instead of staying constant.<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-mtf-pay-later\/\">How to convert MTF position to delivery (CNC)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-var-elm-in-mtf\"><span class=\"ez-toc-section\" id=\"Advantages_of_VAR_ELM_in_MTF\"><\/span>Advantages of VAR + ELM in MTF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding VAR and ELM is not just about calculation. These margins also play an important role in protecting both the investor and the system when using leverage.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Better Risk Control<\/strong>: VAR and ELM ensure that a minimum margin is always maintained. This reduces the chances of large losses when the market moves against your position.<\/li>\n\n\n\n<li><strong>Safer Use of Leverage<\/strong>: MTF allows you to take larger positions, but these margins keep that leverage in check. It prevents excessive exposure beyond what is manageable.<\/li>\n\n\n\n<li><strong>Standardised Across Markets<\/strong>: These margins are defined by exchanges, which means the calculation remains consistent across brokers. This brings transparency to how margin is applied.<\/li>\n\n\n\n<li><strong>Protection During Market Volatility<\/strong>: ELM acts as an additional buffer during extreme market conditions. It helps absorb sudden price movements and reduces the risk of sharp losses.<\/li>\n\n\n\n<li><strong>Disciplined Trading Approach<\/strong>: Since margins are linked to risk, they encourage more structured and cautious trading instead of over-leveraging positions.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-limitations-of-var-elm-in-mtf\"><span class=\"ez-toc-section\" id=\"Limitations_of_VAR_ELM_in_MTF\"><\/span>Limitations of VAR + ELM in MTF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While VAR and ELM help manage risk, they also come with certain limitations that affect how you use MTF in real scenarios.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong> Higher Capital Requirement<\/strong>: If a stock has high volatility, the margin requirement increases. This reduces the leverage available and requires you to invest more upfront.<\/li>\n\n\n\n<li><strong>Frequent Changes in Margin<\/strong>: Margins are not fixed. They can change based on market conditions, which may impact your existing positions and require additional funds.<\/li>\n\n\n\n<li><strong>Limited Stock Availability<\/strong>: Not all stocks are available under MTF. Only selected stocks with defined margin structures can be traded using this facility.<\/li>\n\n\n\n<li><strong>Risk of Margin Calls<\/strong>: If the stock price falls and your margin drops below the required level, you may need to add funds quickly. This can create pressure during volatile markets.<\/li>\n\n\n\n<li><strong>Reduced Flexibility<\/strong>: Higher margins on certain stocks may limit your ability to take larger positions, especially when compared to low-risk stocks with lower margin requirements.<\/li>\n<\/ol>\n\n\n\n<p><strong>Read Also:&nbsp;<\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/best-lowest-mtf-interest-rate-brokers-in-india\/\">Lowest MTF Interest Rate Brokers in India<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MTF gives you higher buying power, but the real clarity comes from understanding how the margin is calculated. Once you know how VAR and ELM impact your required investment, it becomes easier to plan trades and manage risk better. Checking stock eligibility and broker terms adds another layer of control, helping you avoid unexpected costs.<\/p>\n\n\n\n<p>If you are planning to start with margin trading, using a platform like <a href=\"https:\/\/www.pocketful.in\/\">Pocketful<\/a> can simplify the process. From access to MTF stocks to transparent margin details, having everything in one place helps you make quicker and more informed decisions.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">1<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-margin-against-shares\/\">Margin Against Shares: How Does it Work?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">2<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/top-tips-for-successful-margin-trading\/\">Top Tips for Successful Margin Trading in India<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">3<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-margin-pledge\/\">Margin Pledge: Meaning, Risks, And Benefits<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">4<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-intraday-margin-trading\/\">What is Intraday Margin Trading?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">5<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-operating-profit-margin\/\">What is Operating Profit Margin?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">6<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-stock-margin\/\">What is Stock Margin?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">7<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/mtf-vs-loan-against-shares\/\">Key Differences Between MTF and Loan Against Shares<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">8<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-margin-funding\/\">What is Margin Funding?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">9<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/liquidation-in-mtf\/\">What Is Liquidation in MTF?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">10<\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/margin-money\/\">What is Margin Money?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What does VAR mean in margin trading?<\/h3><p class=\"saswp-faq-answer-text\">VAR refers to the expected loss a stock can face under normal market conditions. It helps exchanges decide the minimum margin required for a trade.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Is MTF suitable for beginners?<\/h3><p class=\"saswp-faq-answer-text\">MTF can be used by beginners, but it requires a clear understanding of risk. Since leverage is involved, price movements can impact positions quickly.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How can I check MTF eligible stocks?<\/h3><p class=\"saswp-faq-answer-text\">You can check the MTF eligible stocks list directly on your broker\u2019s platform before placing any trade.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Does margin requirement change?<\/h3><p class=\"saswp-faq-answer-text\">Yes, margin requirements are dynamic. They are updated based on stock volatility and overall market conditions.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Can I exit an MTF trade anytime?<\/h3><p class=\"saswp-faq-answer-text\">Yes, MTF positions can be squared off anytime during market hours. However, interest is charged for the duration you hold the funded amount.<\/p><\/ul><\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you start trading, there are two ways to move ahead. One is where you pay the full amount and use your own capital. The other is where you use margin trading to take larger positions by investing only a part of the total value. This is where you need to understand how MTF margin [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":26592,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16],"class_list":["post-26558","trading","type-trading","status-publish","format-standard","has-post-thumbnail","hentry","category-trading"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is VAR + ELM in MTF? How margin requirement is actually calculated<\/title>\n<meta name=\"description\" content=\"How MTF margin is calculated using VAR and ELM. 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