I’ll be holding a stock future postion for the first time on expiry day. So I want know how much cash and by what time should i maintain in my Zerodha account to make sure my future positions are not squared off. Do i require 100% of contract value, if yes then by what time on expiry day.
You don’t have to keep entire contract value, on expiry day the margins will increase to 40% of the contract value or SPAN + Exposure margin whichever is higher. So this is what you have to maintain in your account.
Also, if you’re planning to let it go for physical settlement, then best to maintain equivalent cash in your account in case of Long Futures position to take delivery of shares and ensure your account doesn’t go in negative balance. In case your account goes in negative balance, interest is applicable at 0.05% per day.
In case you’re holding Short Futures position, then ensure your have shares equivalent quantity (Lot Size * No. of Lots) in your account for delivery to avoid short delivery. You can learn more about short here.