I trade F&O. I find a lot of debits from my account when I check my Zerodha statement. I have pledged Mutual funds to get a margin. I heard that Zerodha will charge interest on margin if I didn’t maintain a 1:1 cash equivalent: non-cash equivalent ratio. I was checking Zerodha’s statements & found these entries.
Net obligation for Equity F&O
Can anyone clarify what this means? Also what entry should I look out for if Zerodha is charging interest for my collateral?
The F&O obligation amount is the net sum of money added or removed from your ledger on a given day for your futures and options positions. Options trades are settled on the basis of net premium receivable or payable. However, when you trade futures contracts, the obligation amount is calculated at a marked-to-market (M2M) price.
The exchanges require that 50% of the margin for overnight F&O positions must be in cash or cash equivalent collateral, while the remaining 50% can be in non-cash collateral margin.
In case there is a shortfall in the cash margin requirement and it is funded by non-cash collateral, You will see n entry named " Delayed payment charges"