I have Bull Put Spread which is Deep ITM now and hence in loss.
I observed today that as market continued to fell, and as my loss in sold PE increased gradually ( profit in Long PE also increased proportionally), Zerodha started blocking more and more margins.
In the past I have been mostly able to avoid such large move days and haven’t experienced this before.
So even though net PnL for spread remained constant my Margins kept increasing.
- Why? Mechanism explaination plz.
2, What will happen if I went into Margin Shortfall due to continuous one sided move ?
What is zerodha policy here? You square off?
What does new SEBI rules tell us.