Margin statement - requirement

General
#1

How do I know if I meet my margin requirements. The daily margin statements can get overwhelming.

What I do now is to check ‘Available cash’ under ‘Funds’ section in Kite. If that is positive, then I presume to meet all margin requirements. Is that right?

Thanks so much

@siva @ShubhS9

#2

You can refer to this post to learn how to interpret Margin Statement.

You can refer to Available Margin, these are the funds which can be used for trading.

#3

Thanks Shubh for the reply.

I don’t think that it is entirely true.

I was in a situation before where my ‘Available Margin’ was positive but ‘Available Cash’ was negative in Funds section of Kite. I was charged short interest for the same. I think there is a 50% min cash (or equivalent) margin requirement as well.

I would like to ask again if its Ok to think that I meet ALL margin requirements when my ‘Available Cash’ under Funds section in Kite is positive.

Please clarify

#4

If Available Cash is negative there is interest charged on this.

Yes, for overnight positions 50% margin should compulsorily come in cash or equivalent, and the remaining 50% can come from collateral. Not having a minimum 50% margin will mean you will be using excessive collateral, this attracts the interest of 0.05% per day.

Yes, you can refer to Available Cash, to check whether you are meeting margin requirements.

#5

Perfect @ShubhS9

I guess I can safely concur that as long as my ‘Available Cash’ in ‘Funds’ section in Kite is positive, there will be NO charges / penalties due to shortfall in Margin requirements. Right ?

1 Like
#6

So I want to confirm the same thing …if available cash in kite shows positive value at the end of the day and daily margin statement shows negative value at the end of the day …what is reliable ? available cash or daily margin subtotal? @Ddude @Kshiteesh_Saralaya

#7

@ShubhS9 @siva

Please confirm that

  1. Margin shortfall penalty by exchange will not be levied on additional margin required by member as per RMS.

  2. Margin shortfall penalty by exchange is levied on eod basis and not on intraday basis as on Feb 2021

  3. Interest will be charged on negative cash on eod basis and not on intraday basis

#8

Margin shortfall penalty won’t be applicable additional margin collected by broker.

If you are not aware, starting December 1st, there is concept of peak margin reporting. If there is shortfall during trading hours, there will be peak margin penalty.

More on this topic here:

On EOD basis.