Queries about insufficient funds notification


Last week on Friday I sold a strangle in nifty50. I sold a call around 500 points away from current market position and a put around 500 points away from the market position. The required margin was around 99k. So I placed a weekly strangle.

Then on Tuesday there was a notification from Zerodha that my fund is insufficient and if I don’t add more money to the fund my positions will be squared off. That time the market was around 300 points away from my call position. My fund was around -1000. So I added some more money into the fund.

Then again on Wednesday the market came a little close to my call position and Zerodha gave me the same notification of insufficient balance. So I again added some more money to the fund.

The same happened again on Thursday also.

Finally on Thursday the market closed around 200 points below my call position and I booked the profit.

My question is if I don’t add more money into the fund when Zerodha sends this notification, will my positions be squared off? Even if the market doesn’t cross my call/put positions on weeekly expiry?

Thank you so much in advance!

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Yes, if you don’t maintain sufficient exchange stipulated margin your position may get squared off any time. Kindly always keep buffer amount to tackle any margin fluctuations.

Okay Sir. Thank you so much for your help!