This is applicable for option writers wherein the margin is blocked until exit of positions
Need to know if the margin is blocked first in the available cash balance or collateral funds?
For eg if a user trades in both equity & F&O and he has 1L in available cash and 1L in collateral funds (liquid bees etc)
Now if he has done option writing and say 85K is blocked as margin in available cash until position exit or expiry - and later there is an opportunity in equity for 50K then if the 85K is blocked he cannot take delivery at T+2 without either adding funds 35K or liquidating collateral worth 35K.
So how is this done now? - And will there be preference setting to exhaust collateral first for margin requirements before blocking available cash which is required for other trades.