Is there any penalty if the Available cash is in negative?

General
1

  1. What are “Available cash” and "Available margin?

  2. Is there any penalty if the “Available cash” is negative? “Available margin” is positive and has a good amount available.

1 Like
2

@ShubhS9

3

This is cash available in your account.

These are total funds available (Cash + Collateral.)

Please check out this article for more information.

There won’t be margin shortfall penalty. But, interest will be applicable if available cash in your account is negative.

4 Likes
5

Will it be adjust to the excess amount kept on the trading account before/after?

6

Couldn’t get what you’re referring to, can you elaborate?

7

@ShubhS9 if the Available cash is negative for 5 consecutive days, will zerodha forcefully close my existing position? is there any rule for forcefully closing the position?

8

It depends on portfolio-level risk. We will notify you via sms/mail before we take action to make the cash balance positive.