Margin Call Fulfillment Timeline

Hello, (@nithin and others)

Whenever there is a margin call made by Zerodha to cover open positions in derivatives, an email with subject “Important: Margin call for your Zerodha account” and a SMS to registered mobile no. is received.

**My question is - how much timeframe do I have to add the required funds? **
For example, if I receive such a email/SMS at 1:30 PM today, then by what timeline (day/time) can I add funds?


Typically alerts are sent if losses exceed 30% of margin.

The positions are usually squared off when losses in the account exceed 50% of margin. So the idea is to ensure you add funds immediately when you get that alert. On volatile days square offs might happen even before 50% mark.

Also positions will be squared off if there isn’t 100% of stipulated margin by end of day (typically post 3pm). If we don’t square off, exchange charges a margin penalty.

Btw an important thing to note, unrealized profits aren’t considered while considering loss in the account. Realized profit, Realized loss, and unrealized loss are summed up to determine the overall profit/loss. This is because exchange doesn’t consider unrealized profit for margin reporting.


hey i forgot to shift my weekly hedges which i am using to reduce the margin requirement.
what will happen tomorrow morning
will all my positions be closed first thing the market opens? or i will get some time to buy hedges or add funds ?

@siva kindly request your response. Kindly clarify, whether there will be any penalty charges also?

Transfer money now ie before 11pm to escape from penalty you will be charged today if you don’t have enough funds to carry shorts.
If you have enough funds to carry shorts then tomorrow at any time you can take hedges as you wish and reduce margins. If you carry potions without enough margin, RMS can close your positions anytime after market open.


@siva hey thanks for the clarification.
i want some help in knowing how much to transfer so that i dont face penalty.
i have the following positions :

in total the margin requirement without hedging is shown as 600779
the following is my funds position as shown on kite

my question is how much should i transfer?

asking this because i am not sure how much balance i have in my account in addition to the collateral.
is it 2,54,985 ? if it is so, i am short of 35-40 k. if it is not so, how do i know.

Add all your positions in basket and maintain final margin plus 10% extra as buffer in cash/ collateral. Also I guess you are aware of 50:50 percent rule of cash and collateral to avoid interest.

Yeah, good idea. :sweat_smile:. Aware of the interest.