Futures Margin Penalty

General
1

I have been charged 6800 as penalty for a futures trade.
I had buy and sell of same share (NIFTY - different months) and I wanted to exit both position - but due to low volumes in May future the BUY order wasn’t executed.

I exited all position before 9:30 AM next day and yet there is a huge penalty.

We are talking about NIFTY - it can’t go to ZERO or 100000 in matter of hours - then why this penalty ?

INR 6800 is not a small amount and moreover i wasn’t even notified after market hours- I could have Xfered the shortfall if I had known this sort of compliance is required.

@nithin @NithinKamath - Please help here and refund this amount.

2

Two things

Not knowing Rules
No Money management

General rule of thumb is to keep at least 50% of account value as cash instead of using entire account value for positions.

Using leverage is also not good habit. When something goes wrong you may have to sell your holdings or even house if you ignore rules.

Have a look at this.

3

"Not knowing Rules " - Exactly.

That’s what - there are so many of those.
I don’t know but broker does. If there is shortfall - I should have notified.

Today we have features like IMPS - it is not the matter of shortage of money - it is not knowing rules and also not informing and notifying the client.

Assuming they would have notified me of this shortfall and i didn’t have the money - the penalty was acceptable.

But the main issue is I wasn’t even notified to perform any action to resolve any rules related issue.

4

@nithin could something be done here ? as it wasn’t intentional. I could have filled the shortage if i had known.
Please reply.

5

Pl. Clear future margin penalty rules