Query on margin call

Zerodha
1

hi zerodha @ShubhS9

i have observed this second time that i received a margin call sms email in below condition

a. i have shorted weekly bnf CE which is in minor profit and margin is still available in account
b. i place a limit buy order on this bnf CE and the order is placed no problem
c. after an hour i receive a margin call sms email while my short ce position is still in small profit and OTM

i have seen that when i had only a short ce position i didnt get any margin call even if the spot moved close to my CE level but the moment i place a cover buy order for my short ce position i get margin calls!

why am i getting margin call? its not that the index has gone up wildly to make my short CE position in negative and short of margin? VIX had already gone up before i had placed my cover buy order and margin was available so even volatility is not a problem

the moment i cancel my limit buy order against my short open CE position margin is reduced back to normal level!

Please clarify
Thanks

2

When you place a buy order against your open sell position, the option premium will be blocked against it. So if you do not have sufficient funds in your account this will result in a negative balance and a margin call will be triggered. When you cancel this buy order, the blocked funds will be released.

3

i have recvd margin call on 2oct 2023 when market is closed i was having 25lac margin and now its shoiwng minus 50lac i have sold far otm bnf call on 4 oct expiry how its possible to recvd magrin call on holiday even support team is closed today what i should do now reply