What is the margin required for holding one lot of nifty short call position on expiry day? Is there any calculator provided by zerodha? My funds stmt shows withdrawable balance of 7+ lakhs and I still see that alert. How much money is to be kept in the account. Also nifty50 is cash settled.
Hey @anugnani
You can roughly keep close to 2.5 lakhs on shorting Nifty Call option.
You can check on this link for calculating the margin.
Yes this is cash settled on expiry.
Thanks. But withdrawable balance is 7lakhs plus and still see the alert that some 37k needs to be added. Can’t understand what is going on.
Can you check if there are any open positions or pending orders?
An additional exposure margin of 2% of the contract size applies to all short option contracts. If your cash balance is positive, you don’t need to worry and can ignore the alert
i have one more short stock option and no other orders except gtt orders to sell my holdings. I think stock option margin requirement will not change until last few days before exp. u have an excellent feature that even nudges about gtt orders pending but this extra margin requirement seems a lot confusing.
I have 7l+ in the account that I can withdraw now as seen on funds page. And I have one short stock option (monthly obviously and hence no change in margin needs - even m2m is meagre -1k) and one weekly nifty call option sold with strike price of 24850. Still there is a message that an additional 37k is required for tomorrow’s exp.
I have checked that monthly options margin calc which shows less than 2 lakhs which is already with you when i created the position yesterday. I still have 7 lakhs plus as withdeawable balance. there are no pending orders except gtt orders to sell holdings. Don’t understand what should be done.
Hey @anugnani
Could you please raise a ticket at support.zerodha.com
Our team will review your query in detail and get back to you.
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There is a 2% increase in the margin requirement, Tom. You would calculate it as follows: 24850×75×0.02. If you maintain a positive account balance, that’s enough.
I will do that. But the alert that popped up is now not visible. Perhaps I will get an email shortly and then raise the ticket with screen shots. But I think I should be misunderstanding something here. Alert will most likely be generated by your system and it cannot be selectively incorrect unless there is bug in the backend software. Thanks for the suggestion though.
That is the reply received on support portal. That is too bad if you are sending emails to all without verifying if the user has enough balance or not. Wish you take correctlve action.
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This alert is precautionary, meant to keep clients informed and cautious about their positions. It serves as a heads-up that positions may be squared off if sufficient margins aren’t maintained. That said, we also inform if you already have enough funds, you can safely ignore the message.
We’ll review this internally to see if any refinements are possible. Thank you for bringing it to our attention.
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