Take this scenario for example. You’ve 100 in your account and took positions with this, as margins are dynamic and change according to volatility and price. If during trading hours, margin requirement increases to 110, at the end of the day you’ll only have 100 to report against this. So, on the 10, exchange will charge short margin penalty.
In morning I have 100 in Zerodha acccount, took a f&o position for 100 bucks. Now remaining account balance is Zero. During the day, due to dynamic margin pricing account balance become -10. And before end of the market closing, at 3:15 pm I square-off my f&o position and account balance becomes 100 again.
Will I be charged peak margin penalty for -10 balance?
I thing cc takes random snapshots four times,correct?
Secondly how it had worked till now was that if we deposited funds till night in our accounts ,we wouldn’t have faced penalty. Even some mid level brokers accepted pre dated cheques so as to report full margin to exchange. So will this arrangement work now too.
Lets say this is the scenario
Initial fund 3000rs ,
I sold 133000rs holding, (20% blocked=26000), Remaining 107000rs.
I took position for 97000rs in F&O
squared up position in f&o with profit. Never did account go in loss or negative fundbalance.
i Bought back 107000rs holding back.
I will be charged penalty because
Because i bought back shares which i sold and had used same for intraday margin.
if i had not bought back the shares there would be no penalty.
Hi, @ShubhS9@siva
In the above picture
What is 10% applicable margin? what if short collection is more than 1 lakh?
If 1 lakh is the margin and if you are short by 5k penalty is .5% but if required is 1 lakh and short by 20k then as it is more than 10% of total margin required you will be charged 1% penalty even though overall short is lower than 1 lakh.
But shouldn’t peak margin be applicable on margin shortfall itself? If there are losses due to fluctuations, then that loss hasn’t actually crystalized. Due to risk management by brokers, real time unrealised loss will be deducted from free margin for safety purpose but that loss doesn’t actually exist yet. If the day closes, then your loss will crystallize and if there’s a shortfall then, penalty will be applicable on the shortfall. Need clarification @siva@ShubhS9.
I have four position and 2 position open if i click check box next to product all the position get squared but i get margin call may be because long get executed first. Is there a way to square of short first and long later at a time.
I have tried selecting check box short first and long later.