Why does TradeJini increase intraday margins for MIS and CO on days when the market is volatile?

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Margins are funds collected from our customers to safeguard against potential defaults, in line with the minimum exchange requirements. The margin requirements are flexible and depend on the volatility of a security; higher volatility prompts higher margins, while lower volatility results in lower margins.

During special events like election results or budget days, standard minimum margin requirements set by exchanges may not accurately reflect the actual market volatility. In such instances, TradeJini may choose to increase margins beyond the exchange’s minimum requirements as a precaution. Once the event concludes, and volatility subsides, or if the event passes without causing significant market fluctuations, TradeJini will revert to the minimum required margins.