For instance, I have Rs 1,10,000 in my account. I bought arvind futures at price 340 ( 2000 lot ) and margin I paid is 110000k. I dont have further money in my account. Incase after 2 days stock fall from 340 to 320 then still can I able to hold the position or RMS will square of my position.
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Check our SPAN calculator: https://zerodha.com/margin-calculator/SPAN/ , for Arvind future you will see the span margin as around Rs 80,000 and exposure margin as Rs 30,000. The maximum an RMS team can let you hold till is the SPAN, so if you lose Rs 30,000 that is around 15 points of Arvind, the RMS team will most likely square your positions off.
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@sai,
I think if you dont want a square off to happen, you can pour in more funds as additional margin and ask zerodha not to square off. (Margin Call)
Thank you nithin…
In case on first day after taking position it went down for 5 points and in second day again it went down for 5 points and in 3 day also my lose continued and decreased 5 points. So by the end of 3rd day I lost 15 points. From the above example RMS team will hold my position upto 3rd day and square off my position at the end of third day. Am I right ?
So, in general If the lose exceeds exposure margin then RMS team most likely square off my position ?