Avoiding Margin call

Using SensiBull @Sensibull I did options trading.

I plan to exit/close my position. Markets orders are not allowed so placed a limit order. Both were open for some time.

But After 600 PE got triggered suddenly did I get a margin call? why does this happen? How to avoid these. If I defaulted to update my balance. Is the peak margin penalty is my consequence? Please guide me

@Sensibull waiting for your reply. @siva @ShubhS9 you have any idea why this happened.

Place the buy order first, once it gets executed, place the sell order.

Buy order is working as a hedge, so you require less margin. But, with only option sell position, you are exposed to more risk, hence you will require more margin.

1 Like

I thought this first. Since newbie to FnO I got cleared this doubt thanks, Kamal Ji

The exit order for your long position would’ve executed first, leaving your short position open. Since the position is no more hedged, this increases the margin requirement. You would have received the margin call as you didn’t have sufficient margins to hold naked short position.

You should exit short position first and then exit the long position. Also, peak margin penalty can be applicable as the exchange takes 4 snapshots at random times throughout the day, so if there is any shortfall during this time, peak margin penalty will be applicable.

Please check out this post for more information:

1 Like

Thanks Shubham Ji