I received below message from zerodha.
I wanted to carry my position till expiry day,
Will there be a penalty when they square off my position next day morning?
"As per exchange regulations, an additional exposure margin of ₹1408453.61 will be blocked for short option positions on Index Contracts expiring on 27 January, 2026. This is in addition to the margins blocked for current positions.
Please ensure to maintain sufficient funds in your trading account before the market opens to avoid your positions being squared off"
There should not be any penalties IG. You can request zerodha to avoid auto squareoff all the positions, square off only the positions for which you’re short of margin.
Additional 2% ELM is charged on expiry days if you hold short index positions. If you don’t maintain adequate margins, this will lead to a shortfall and margin penalty, and your positions may be squared off. Kindly check the support article.
Even if there is sufficient margin available in account why does zerodha show this message or call around 4-5 pm. quite frustrating sometime. earlier i used to get panicked if some issue with my margin balance. now i started ignoring all such messages and calls. reminds me to story “sher aaya sher aaya”
Yeah that I understand. But lets say if I have sufficient margin available then why you need to call? and calling happens post market so it means i cannot even enter new position now. So call is completely unnecessary.
request you to pls call only if i am falling short of margin or i am quite close to margin.
Yes it is calling if i have open positions and sufficient margin even after adding 2%.
Also I get call in following scenario- Lets say my whole margin is consumed in Tuesday and Thursday expiry nifty and sensex (options writing). So I get call on Tuesday evening when it is very clear that margin will get released since most of the Tuesday expiry options margin will get released. (this i used to get, I am not sure it is corrected).
Case by case very tough to say but in general whatever calls i have received in last 2-3 months were not of any significance.