50:50 Cash Colleateral Requirements

Team Zerodha,

If I sold 1Lakh and bought back 80%(80K) for delivery its occur 50:50 margin rule.

Ex : My account balance is nil & not have any colleateral now i sold 1Lakh worth share and bought back 80% for delivery … any margin penalty i will face?

Kindly explain. Thanks!

You can sell the shares from your holdings and can buy them back on the same day (only 80% if you do not have funds, since 20% will be blocked until the next day), there won’t be any penalty. The 50-50 Cash - Collateral requirement is for trading in F&O, not equity.

If i take over night f&o position how margin play-out here?

You can check the margin requirements using the Margin Calculator: F&O margin calculator - Zerodha Margin Calculator

For example, if the margin requirement for buying 1 lot of Nifty Futures is 1 lakhs, then off this 50% ie, 50k has to come from cash or equivalents and the remaining 50% from the collateral margin. You can learn more about this here: What is pledging, and how does it work?

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