Hi Zerodha team,
Since some days, Vodafone futures were carrying a margin of around 3.2L per lot, up from about 2L per lot that was last month.
But yesterday, the margin required was again down to 2.2L, and today it is again up to 3.2L. Can someone check what is going on? There was no fresh increase in volatility yesterday, so why this move? Or is it something Zerodha has imposed from its own side?
The increase in margin requirements is from two factors. First, the stock has appreciated significantly, rising from ₹8.85 to ₹12.04, an increase of approximately 36%. Second, the total margin requirement itself has increased modestly, from 37% to 38.75%.
Here’s a comparison 
November 1st:
| Scrip | Rate | Lot Size | Margin % | Amount | Exposure Margin % | Exposure Amount | Total Margin % | Total Amount |
|---|---|---|---|---|---|---|---|---|
| IDEA | ₹8.85 | 71,475 | 31% | ₹1,95,126.75 | 7% | ₹44,278.76 | 38% | ₹2,39,405.51 |
Today:
| Scrip | Rate | Lot Size | Margin % | Amount | Exposure Margin % | Exposure Amount | Total Margin % | Total Amount |
|---|---|---|---|---|---|---|---|---|
| IDEA | ₹12.04 | 71,475 | 30% | ₹2,58,024.75 | 8.75% | ₹75,298.91 | 38.75% | ₹3,33,323.66 |
You can see that the margin has increased from approximately ₹2.4L to ₹3.3L per lot
We have not charged any additional margin from our end; we are simply blocking whatever the exchange requires. Yesterday’s margin was also above ₹3 lakh.
Yesterday’s Margin Requirement:
| Span Scrip | Rate | Lot Size | Margin % | Amount | Exposure Margin % | Margin Amount | Total Margin % | Total Amount |
|---|---|---|---|---|---|---|---|---|
| IDEA | ₹11.87 | 71,475 | 30% | ₹2,58,024.75 | 7% | ₹59,388.58 | 37% | ₹3,17,413.33 |
Thanks @Adarsh_Patil .
I guess it is the exposure margin going down from 8.75% to 7% just for one day (yesterday), and now back to 8.75% which caused the variation in my calculations of the margin requirement. Thanks for the explanation
And today the margin has shot up to more than 4L, without any increase in the volatility of Vodafone Idea. What is the exchange smoking? Any idea why this has been done?
I don´t see the stock being in any short or long term ASM framework either. @Adarsh_Patil can you please shed some light on this matter. Thanks
It is sad that Zerodha did not send any alerts on this matter, if it was known in advance. 15% extra margin is a lot and one could have planned the yesterday´s rollover in a better way keeping the margin requirements in mind.
Guess that’s a good thing. Idea in LC after good news.
