False Sense of Margin on expiry day

Dear @nithin,

You and your team have been doing magics to keep us retail customers safe by introducing a lot of features such as nudge, margin display on order window and so on. While all these have definitely helped, I have often found myself trapped struggling to calculate actual margin required for next expir(ies) positions open/taken on the day of current week/month expiry and due to this, have been paying penalty for shortfall in margin.

For instance, yesterday I had some positions of 3rd Dec expiry and other of 10th and monthly expiry. At the end of the day, I squared off most 3rd Dec expiry positions except for deep OTM where squaring off didn’t make sense due to additional cost (brokerage, taxes etc.).

Before EOD, I repeatedly kept checking funds page to ensure that I don’t run into margin call issue, kite kept show me adequate balance (maybe due to a few long of 3rd Dec expiry with CMPRs.0.05. I even went above and beyond and checked on Sensibull position analysis as well by excluding all the positions expiring that day and it also shown that I had sufficient margin hence I did not fund my account.

When I logged in today, I was surprised to see that my account is in -50k due to open positions and this will lead to margin shortfall penalty eating into the profits i made yesterday. If I knew this, I would have funded my account with excess amount.

Please can you add some other feature which could exclude open positions of current expiry while calculating margin on expiry day? This will help a lot of small traders like me.

Margins shown will be inclusive of those positions, if you want to be sure it is required to square off all.

We also upload new span margin file at around 4 pm and if there is any shortfall we will send alert based on new span file because there is possibility of change in margins before close of market and after. So, it is recommended to close all positions of expired contracts to know exact figure.

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Yes I understand Siva, thats why the confusion and delusion of margin comes in picture. Squaring off of deep OTM increases cost though this is what I would follow from this week onwards until a feature might get introduced to help.

I am not sure about this, I keep my eyes on my mailbox, the first margin call email came in the morning around 8PM.

The point I am trying to make is that it is complicated to calculate margin requirement due to expiry week position results in confusing actual margin required. While traders try to keep an eye for such shortfalls, it would be nice and another excellent feature for us, zerodha customers.

Only way is to close expired contracts because span is based on total portfolio.

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