Margin shortfall

Dear all,

I would like to know how margin short fall is calculated and does your broker sends you sms/call at the same time your account fall under the margin required? I had a recent incident with my broker Angel one.

I’m an options seller and I do only weekly expiry trades in Nifty. Last Thursday (15th September) all my positions expired worthless and I left my positions to expiry. I booked around 3% profit on my capital and my positions had never gone to margin shortfall situation at any point of time during the market hours. However, on Thursday night 10:45pm (IST) i received the below SMS.

When i checked with their customer service, they just repeatedly explained how the margin shortfall penalty is calculated and never addressed to my issue. My question is,

Is it possible to know at what time and for how long (during market hours) my account went to margin shortfall?

Is there minimum time duration for which the account has to be under margin shortfall so that the broker will impose the penalty?

Thanks in advance.
Swaroop Soman

dere is no panelty in zerodha now

hi swaroop

im also option seller but i didnt face this kind of issue. but some points you should look into

  • As per the SEBI rule you should maintain 50% colatral and 50 % cash margin in your account
  • if you buy headge for getting margin benifit and you squre off headge first then your selling possition is open then margin can also increase drastically.
  • broker can not take peak margin penaty for client, broker paid by it him self
  • you can check margin report from angle broking which they sent u after taking trade it will only avilable if u take long possition all details will mention there.