Can anyone please explain the margin thing

This has been going on for quite some time at Zerodha, at least for a few months. Me & another user had pointed it out to them, but to no avail…
For me, this creates a problem on expiry days when you want to utilize the full margin but don’t know the exact margin left in your account, so end up paying extra brokerage.

may be to lure extra brokerage form us, this is the feature for zerodha

@Ragavendran_V was able to carry forward all the lots for tomorrow as well. No much difference in the margin. So it has to be IVs in the last 2 months which led to the increase.

In the screenshot you can see, that available margin is 2,71,158.75 as reported in fund tab

but it is not allowing selling one lot of nifty
please fix it, show the correct margin in fund tab

You need 3.05 lakhs to sell 1 lot Nifty as shown in the rejected window.

Happened with me too. But didn’t bother posting here.

At this time cash available was shown as 8.5L. And it was not letting me sell one lot of Banknifty.

So what I did was I sold 2 lots of nifty.
See the screenshot below. I didn’t close any position

are you kidding me ?
margin reported there in margin tab is wrong
it should have reported around 29 lakhs as used margin

why would 1 lot of nifty call OTM option require 3lakhs ?

Irrespective of what were my existing positions, margin on 1 lot of 35000pe short position wouldn’t require 8.5L.

Either the margin available mentioned in funds tab was wrong or the order was wrongly rejected.

In the above screenshot, you’ve received option premium of around 220k. Premium recieved from selling options can only be used for buying options on T-Day. You can use it for all other purposes from T+1 day onwards.

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Thanks for solving the mystery.
It solved my every query.
This is the correct answer.

Now the difference between margin showing at Zerodha and other sites is understood.
I just need to add SPAN and exposure
or subtract option premium from available margin to know the real available margin for me.

Thanks again.
Kudos to you @ShubhS9

@ShubhS9 any idea what happened in my case?

Jason, you must already have a pending order blocking margins. If you tried to place fresh order, this will require more margins. And as explained above, premium recieved from selling options can only be used for buying options on T-Day. You can use it for ball other purposes from T+1 day.

Also, to arrive at the shortfall amount, you need to calculate the difference between required and available margin shown in the error message.

If there was a pending order, then it would have been reduced in the funds tab also. You know this better. (I Didn’t have any open position).
If you see the second screenshot I was even able to sell 2 lot of nifty options without cancelling or closing any position.

Premium received was not anywhere close to 8.5L. I really wish it was the case. Lol.

Anyways. I don’t bother about such things. It has happened before too. I felt it was a technical glitch. So brought it to your notice. If it hasn’t happened to anybody else yesterday then may be I am only wrong.

yes… happened with me as well on option buying.

Date was Oct 1.

I tried buying an atm Bank Nifty option in the range of 600- 650- which would cost me approx 16k per lot.

Zerodha kept rejecting as ‘funds unavailable’ and was calculating it at 81000 per lot.

Does anybody else recall past experiences of cost of options being increased above par value?

Also I had just about enough funds to buy at around 81k per lot, and still the error.

Anyways- I did not bother or follow up.

Has happened many times before & the one time I raised it up, received the same lazy response as well…even though I trade in penny options & never receive that much premium anyway…

That’s the reason I do not want to escalate it. No matter what we say, some reason will be given.
Like pending orders. Really ?? When there are pending orders funds are not reduced from funds tab? That in itself would mean there is technical error.

Not allowing to take positions, due to technical issue, despite having sufficient margins is annoying but what I’m more worried about is if the system allows us to take excess positions by calculating margin-used incorrectly resulting in a peak margin penalty. When a penalty is charged, there is no way for the client to cross-verify if indeed there was a margin shortfall. Just have to take the word of the broker and the clearing corporation.

Yup, same with me. The only reason I brought it up that time was because another user had posted the same issue & thought I’ll add my comment as well, that particular thread was quickly unlisted after I commented.
I only hope that our funds aren’t being utilised anywhere else & that it’s some sort of flaw or glitch in their system…

That’s potentially an issue as well, but for that, they first need to admit there’s a problem (at least privately, if not publicly), right now they are in denial mode…

Not sure why it is hard for Zerodha to accept that there is an issue.