Index option strategies auto squared off

F&O
1

Hi @ShubhS9

I have used option strategies…My option strategies got squared off at 3 pm by the brokerage office automatically

I have an additional cash balance of 35000 in the account…Does this happens in Zerodha also?

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There is a difference of RS7 between 36200PE and 36300…because of auto square off I lost 7rs for 1 lot

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1 Like
2

For F&O, the auto square off time is 3:25pm.

1 Like
4

If you’re maintaining sufficient margin in your account, the position will not be squared-off. We’ve explained the scenarios in which your position can be squared-off here: Why does Zerodha square off positions?

Would suggest you reach out to the support team of the broker you were trading with for clarification.

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5

Hi

In the above scenario, I had a ITM position and Do I need for the sell call 1,12,000 (Margin)

  1. If I had taken April series index options…is there any issue for existing series options

Thanks & Regards,

6

When you’re buying options, you only pay premium. While for shorting options, you need SPAN + Exposure margin, it is much higher than the premium you pay for buying options as selling options involves unlimited risk. Do check out this article for more information.

Nope. Having positions across different expires doesn’t have any impact on any position. In fact, if you’re holding multiple positions, for example Short Call and Long Call, this can be same expiry or different expiry, since the position is hedged you get margin benefit which reduces your overall margin requirement. You can learn more here: Benefiting from the new margin framework- an example