Starting from May, I was already trading at 75% of my full capital and keeping an eye on daily margin increase. However, on last Monday (First day after Exit Poll declaration), in the morning I had -3L margin shortfall and kept receiving messages that I am using 103% of my capital. Out of fear, I SQ off another 10% of positions and 5 minutes after I was having 27L free margin? What is that? I mean, you guys have some realistic margin requirement system in place and not trouble people like this.
@nithin may be we can have a warning in advance, or some kind of margin calculation system ahead to for the day??
Changes in margins are depend on multiple factors like changes in SPAN and NOV (Net Option Value), SPAN changes are depend on volatility, events, etc. (read more: https://www.nscclindia.com/risk-management/equity-derivatives/nsccl-span) and margins are always calculated at overall portfolio level.
The changes in hedge portfolio like exiting high hedge contributor position like long options in the portfolio may lead to increase in SPAN which in turn can result in exceeding the total account margin. The margin calculation system is managed by clearing corporation’s through CME group PC SPAN (https://www.nscclindia.com/risk-management/equity-derivatives/pc-span).
The easiest way to track upfront margin is through adding the entire portfolio to either Basket or to web site margin calculator where BOD SPAN is uploaded and the same is calculated inside RMS as well.