Higher margin requirement than possible loss

Lets assume I do a Put Credit Spread, the difference between the strikes is 50 and I take a credit of 20, so the most I can lose is (50-20)*75=2250, in that case why the margin blocked in account is 25k+? I have no other open position, what am I missing here?

PS- This is while placing a bucket order!

1 Like

That’s because sebi and nse trying to save retailers ass as they saved from yesbank, iifl, Franklin templeton and Dhanalakshmi bank.

@gpgane As a beginner I honestly appreciate this, if that is the case. Can you provide me some source where I can read more about margin requirements, its really confusing to find something and only way to know is by putting the trade.

Always keep more margin than what is required to execute position because in volatile markets broker will ask for more margin no matter what and if your position is in loss it would be squared off if you are not able to meet the margin.

So don’t blindly go by margin calculators available on web and on kite platform. Remember Murphy’s law: Everything that can go wrong will go wrong.