I bought 3 lots of 3800 calls of Pi Industry for 58*750= 43500 when the credit in my account was above 1000 and today my account has been debited with 96000.
Condition - share price previous day closing 3803. And expire 27 jun.
My Q&A
Now I don’t understand how this debit happened.
How will this debit margin be calculated?
What will happen if expiry above 3800 to 3802-3?
What would happen if expiry was below 3800?
And what will happen to the margin debited in these conditions?
Plz explain…
Hi @VaibsA
This is due to the extra margins that you need to have due to compulsory physical delivery process stipulated by the exchange.
Exchange requires you to start having physical delivery margins for your ITM option positions starting from T-5 days from the monthly expiry date. i.e., from the previous week’s friday
Option would expire worthless and there would be no requirement of any physical delivery.
Anything above 3800 will require you to take delivery worth lot size that you are holding. 750 qty in your case.
Please read the below article to know more about the physical delivery settlement process and feel free to ping here if you have any further queries
But this was a debit of Rs 96000, how is it calculated?