Margin Liability

General
1

In a scenario on trading nifty futures, i’m trying to understand what are the liabilities when there is a blackswan event…

On Day 1, 4 lots of nifty future is bought at around 216000 Rs, with nifty at 8900
On Day 2, Nifty opens at 7900, with net loss of -300414.8 Rs.

So, my question is, am i liable for −84414.8 Rs? or is there automatic exit condition from zerodha, which i’m not aware of?

appreciate if someone clarifies this… cheers

2

Your position is squared of if your trading account has less than Rs. 300415 cash

1 Like
3

On Day 1, let’s assume nifty closes at 8400 and next day it opens at 7900, is my position squared off if there is no cash left?

4

Yes . It will be closed