That’s because when you do exit all, all the orders are submitted to exchange and if your buy orders(hedge) gets executed first then momentarily you might have naked sell position which triggers the margin call.
To avoid this, exit your short positions first and then followed by your hedges.
Yes, but what’s the use of this margin call? Real margin calls denote real margin shortfall right?
And why should I avoid this margin call? Any reason, especially if brokerage doesn’t go up for me because of this?
Also, shouldn’t Zerodha apply it’s own intelligence while sending the orders in this case? Like sending the short squareoffs first than second? What’s the use of that exit feature, I think it works just halfway through.
Ok, let’s not go into intelligence then. Let’s talk about the sorting order of appearance of positions in Positions tab as I believe that Exit button just exits the positions top to down in the same order.
When I create an Iron Condor position, I create a basket in which I add short positions first and then long positions after them, as this gives me the minimum amount in ‘Required Margin’. But when I see positions in Positions tab, this order is not maintained. If this ordering is fixed, automatically short positions get squared off first and we’d not have this problem right?
@nithin Could you possibly allow re-ordering of open positions so while exiting we don’t get margin call alert?
If this is not feasible, could you possibly allow creating a basket from open Positions tab by selecting relevant positions. Basket already has re-arrange feature, so that will help in creating exit basket.
Otherwise to avoid margin call alert we have to create a basket manually and it is error prone. Just the other day I ended up creating exit orders as MIS, whereas entry positions were NRML. This resulted in open positions not getting closed, and new positions were opened. I unnecessarily incurred 4*2 legs of brokerages and some loss.