Additional Volatility Margin

The full form of AVM is Additional Volatility Margin which is the scrip-specific margin. AVM is paid when the price of scrip goes up or down to a certain threshold over six weeks of the rolling period. It is paid on the net outstanding sale position of institutional clients. It can be adjusted against unutilized additional capital deposited with the exchange. The members have to pay AVM in cash on the sale position of the institutions if they want a refund.

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