Seems like a new feature in Kite. If the margin at 5:30 PM is negative, then even though market is closed and even if user has no commodity positions, there is a bombardment of margin call alerts every hour, both on email and in-app.
I think this is not good, especially because this margin shown is quite different from the actual margin requirement the next day. Just sending once is ok. Kindly look in to it.
Why is the margin negative? 
This has become frequent now. Margin was not negative before 3:30pm. Not sure how it turns negative after market close. Very irritating.
We understand that the hourly margin shortfall notifications post market calls are annoying and we are actively working to limit this to 1 notification for non- commodity traders.
Hi @MohammedFaisal and @siva
It is happening again (hourly margin call mails), and the interesting point is that the margin should not have been negative in the first place.
On a down day, Zerodha is counting losses twice at 5:30 PM leading to this issue. I may have to escalate if this continues or if my commodity positions are squared off because of this non-sense. I’m pretty sure the margin is positive as can be seen again this Monday morning.
Agree. Zerodha has gone nuts.
On top of that, there is a zero visibility on margin. Have pointed this out several times, they won’t listen.
Not sure what is being achieved here either by exchange or broker. Margin is fine before close of market and increases by 3-4% just after market close. Can’t there be some process or method to get this consistent so that there won’t be any drastic change after market close.
this has become a daily issue. everyday at close margin is in positive. by evenings its negative.
It’s again positive on Monday morning, but giving unnecessary stress at 5:30 PM onwards on the trading day.
There is no point of complaining about this to anyone. If you really want a good night sleep, just ensure the following before closing -
AM ≥ 0.05 × UM
And sleep tight … 
why does margin usage change so widely by next day morning?
Is the margin change in options change real time within the day itself or only takes affect next day morning?
what i see - one change by evening thats due to post closing margin update by exchange, there the change is not that much.
bigger change i see is by next day morning, when the change is much bigger, sometimes to the extent o 3-5% of margin utilised. why is this happening?
Whats the point of having a 5-30pm margin update by exchange if it will again change by next day morning. cause no price change happens between 5-30pm and next day morning
Could there be some discussion on this between exchange and brokers to fix this issue?
I would like to answer this in simple terms.
First of all all these changes are from exchange side, means margins are same across brokers and they don’t have any say.
5.30 pm change is considered based on changes of vol and prices from last hour of trading as previous span file would be generated at 2 or 2.30 pm.
In most cases there won’t be change from End of day file to Begin of day file ie next morning before market opens but yes few times there are changes, guess it has to do with changes in sentiment/global markets etc over the night, I am just guessing it but will check and update here. I believe you are aware on expiry day margins will increase as additional ELM will come into place and margin benefit is cut for spreads expiring that day.
Hi @siva
I would like to clear some issues here:
In Dhan, the margin doesn’t change at 5:30 PM or any time in the evening. They update only next morning around 8 or 8:30 AM, so this problem is definitely not across brokers.
It is not just about margin increasing due to global news or any sentiments… What is happening (I think) is that the margin increases is being counted twice, once by exchange, and once approximately by Zerodha.
To give you an example, say my margin is 1 CR, and used is 90 L. Say due to positions going the wrong way, there is a loss of around 8L during the day, and the used margin is shown around 98L. Then, at 5:30 PM the used margin will be closer to 1.06L (i.e. 98L + 8L), leading to a negative balance. Such errors are more when the underlying has had high movements on that day, not sure why. If a day when underlying didn’t move much, then the 5:30 PM margin is more closer to the 3:30 PM margin. This has been my observation, both on my main and HUF accounts.
Also, please don’t mix it with ELM margin. We all are serious traders and by now know how to calculate and adjust for that. Moreover, ELM only kicks in on Tuesdays and Thursdays whereas the problem I mentioned can happen on any trading day.
Hope it helps your investigation.
thanks
Yes im aware of ELM margin on expiry and not refering to that.
Also, exchange doesnt change margins based on global news or sentiment overnight, infact that is not considered at all. Margins are based entirely on quantitative formula based on past volatility of stock or index. There is no objective criteria used, or expectation of volatility next day. Its purely based on past volatility of stock.
But i see huge changes between 5-30pm margin, and next day open margin.
Because we update new file at 5.30 pm to give users time to add in case if there is any change in margin.
Did you notice any change in 5.30 pm file to next morning before market opens?
Yeah, you are right.
Can you DM me next time with your ID if you notice this again? maybe check around at 5.45pm.
since my complaint here wild margin swings have reduced quite a bit. thank you