Avoiding Short Margin Penalty

F&O
1

Hi All. My first question on TradingQna.

I am relatively new to Zerodha Kite. I did a bit of Options Selling in May and June. While I keep a constant watch on the Funds Tab in Kite, I realized I got hit with two “NSE F&O short-margin” penalties.

While I understand NSE Short margin penalties, my question is How to I avoid it. Is it sufficient if I keep looking at the “Funds” tab on KITE and add money if if goes negative? Should I be worried about it going Negative even for a minute. Or is it sufficient if I check at around 3:30 pm and ensure that it does not stay Negative?

Si

1 Like
2

slv1 intraday margin or cash being negative is okay, infact zerodha will prevent your margins from going negative.
But make sure that before EOD you keep a small positive buffer, so just in case if they increase the margins, you dont get penalized.