Peak margin calculation

Dear @nithin
As per sebi, there is peak margin penalty. And for that it’s duty of broker to take screenshots and share the same with sebi.

But in zerodha kite app, if there is some open position of f&o:

1st situation:
Let say used margin : 50 lacs
Available margin : 20 lacs
And market became volatile little bit due to which there is increased of used margin by 5 lacs,
Then used margin became: 55 lacs
and available margin became: 15 lacs.
And in this way there is no shortage of peak margin penalty.

2nd situation:
Let say used margin: 50 lacs
Available margin: 20 lacs
Now some more f&o order is made(which is not executed) (for which 18 lacs margin is needed if executed), then zerodha kite app show as follows:
Used margin: 68 lacs
Available margin: 2 lacs
Now market became volatile little bit due to which there is increased of used margin by 5 lacs,
Then used margin becomes: 73 lacs
And available margin becomes: -3 lacs.
And in this way there is shortage of peak margin by 3 lacs.

In both the above situation margin available must be 15 lacs, but in 1st situation it’s 15 lacs and in 2nd situation it’s -3 lacs(because it’s also consider unexecuted transactions).


Please elaborate.


When an order is placed, the system will check if the user has an available free margin, if yes, the order will be placed successfully on the exchange and the required margin will be blocked from the available margin for all the open orders. Other orders can only be placed with the remaining free margin.

If margins are not blocked for the placed open order ( unexecuted orders), it will become a huge risk management issue here, as users can place multiple orders for which margin requirement can go above the available margin.

You can check this link to know about peak margin

1 Like

Dear @nithin
Waiting for your response.


Broker won’t take any screenshots as such, clearing corporations do and share with exchanges.

No, for peak margin only completed orders are considered, not pending. So, one is covered in this case.

Also go through this thread where many examples are covered.

Dear @siva
It’s means, clearing corporations have also a screen of individual clients just like broker have. And only difference is that, used margin of a client shown in broker screen both executed as well as non executed orders of f&o while clearing corporations shows only executed orders?


Hi @siva
Good day !!

Sometimes post market too the margin is recalculated. Pre market I see my funds in positive, after market that too after an couple of hours or so, it becomes negative.

This is happening even on Expiry day.

I don’t have screenshots to prove, but it is happening.

I believe it’s still something at clearance board end. But just thought of checking with you.


This can happen, exchange releases span 5 times during the day, what users see on terminal is based on 2.30 span but around 4 pm we update new span. Exchange send another span at around 6pm and margins are blocked according to that on console for next day. Difference we can notice if there is volatility in last 1 hour of market. So, always recommended to have at least 10% balance as free cash.

1 Like

Thanks much for your time

1 Like

Why there is incorrect reporting done by Zerodha in Margin Statement to NSE?

Say I have funds of 74L in the account, entered few Futures NRML Long positions - Trading Terminal shows 31.79L in use and remaining 41.31L as free balance today and similar to this yesterday and day before yesterday too.

So assuming there is significant margin money freely available with Zerodha. But when I look at EOD Margin statement - this is what gets reported - which looks like Peak Margin Shortfall being reported ??

Please explain why the amount required by Zerodha is way too less for FN) - Only 3.14L and while exchange required is 33L ? Why wouldn’t Zerodha report the right margin’s which it shows deducted while trading

NSEEQ 7674226.8
NSE F&O -314098.34 (Yes Negative)
Sub Total 7360128.46

Exchange Required:

NSEF&O: 3340577.33

Crystalized Obligations : 48570.0 (This is MTM - which will be deducted on T+1)


NSEEQ: 7674226.8

NSE FNO: -3703245.67

Margin Status Balance: 3970981.13

1 Like