Likely you are breaking hedge, I can give you exact reason if you can let me know your iD.
No, still the order is pending it is okay but if your hedge leg is traded and if you are left with unhedge position and negative margin you may end up paying penalty, so try exiting short leg/ unhedge leg first and then long options or hedge legs, or you can exit all legs at same time by using baskets. Can check this for more.
When I exit my positions, at eod, I will first cancel pending orders, I will always exit sell first and then buy.
But as things stand for now, could u kindly check and let me know if penalty will be involved.
My ID is DV0962
Hi @siva, Can you elaborate on this a bit more? I have seen this happen to me but my position sizing rule always leaves enough margin in the account to not go into the negative. So never bothered to ask.
To buy fut and put it requires only 51k, but to go long on nifty fut you need 1.6 lakhs, so few users after taking this initial hedge position with 51k they close long put which is a hedge leg and immediately margin will increase to 1.6 lakhs, if someone don’t have that much it will go to negative balance.