I have nifty multileg position, future + multiple option buy and sell legs. Though strategy is in profit but future is daily settled so it lead to margin shortfall. keeping the position till thursday will generate even more profit so im willing to pay shortfall penalty i read on zerodha site.
so can we carry shortfall position or does system square’s it off at the end of day?
and does penalty charged everyday like seperate billing or taken from trading account once positions are closed?
@Meher_Smaran
Hi @Joe_Maxpayne
We’ve explained the process about how margin penalty charges are levied as per exchange guidelines here in our support article.
There are two potential issues with the idea that you shared:
-
In case of MTM shortfall, if the exchange stipulated beginning of the day margins are not maintained, the positions can be squared off. So, basically one has to bring in the shortfall amount by 9.15 am next morning.
-
If there is a consecutive instance of margin shortfall for 3 days, the penalty will be as high as 5% of the shortfall amount.
i see, penalty is ok for just 2day away expiry but 1st points seems scary, if system squares off future then it will make other legs naked. so to be safe il close some legs myself to free up some margin.