Zerodha says keep a 5% buffer but today that’s been violated it seems.
Somebody told you this? Or u are guessing ?
I’m just interpreting from your statements, since you had 14% free margin and yet got a margin shortfall notice.
Correct that there’s a 5:30 pm update but there wasn’t any big movement post 2 pm. Nifty stayed in a 40 point range, which is more than enough, so not sure how the account has gone negative, that too, for so many people…
None of the other accounts that I have got margin call. And there I have around 9 percent surplus.
Further, mark to market was positive. Plus my pledged securities value also increased.
same issue for me too
I had about 2.5% free margin but i’m not planning to add any funds. Usually, the margins are released and updated in the ledger before 11:59pm.
I guess this is due to :
Letting weekly options expire worthless and holding monthly positions. margins till 3.30 pm will be lower as its a hedged position and shoot up later when exchanges upload the final file. Thereby creating margin shortfall.
@Jason_Castelino @SachinSingh is this the case with u guys?
Not really. I did not leave any contract to expire.
We get a peak margin snapshot of every client’s margin requirement from the exchange multiple times during the day.
We get the account balance of the client and send this email/SMS out if there is a margin shortfall from the peak margin captured in the exchange files so that you can add funds and avoid the margin penalties.
The reason for the peak margin to be captured can be:
- You closed the margin benefitting leg of a hedged portfolio during the day.
- SPAN margin shot up in the last margin file from the exchange.
- Like @YS_Bhargav explained, a calendar spread where the weekly long expired.
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There isn’t peak margin penalty with effect from 1st August right. And now at the end of the day I have enough balance. So how can penalty be charged.
Having said that I didn’t do any of the 3 things that you have mentioned.
Point 2 is possible since I wouldn’t know.
Can you DM me your client ID or a support ticket number(if you’ve logged one), I can check and get back to you with the specifics.
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I haven’t raised a ticket because I know I never get answers there.
I can share my client ID in private.
@MohammedFaisal, can you do the same in my case too? Ticket already created: #20220811222448
Would help in taking positions in future…
Nope, just like always, squared off this week’s expiry & took position for next week’s expiry…
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yaa thought so.
mostly this would be a case of peak margin snapshot taken during the lag period when hedged trades are exited and second most likely case would be SPAN margin shooting up in the last margin file.
either ways - as EOD balance is positive, there wont be any margin penalty for traders. brokers have to bear if there is any peak margin.
Then why send us mail saying there is a possibility of penalty? So that we panic and add funds. I am okay with such mails and I came here to raise my concern. So many of them do not even know what to do. And customer care isn’t available.
The whole thing seems a bit strange.
Firstly, the peak margin thing happens during the day, so what’s the point in sending a mail/call after 6 pm anyway?
Secondly, I wasn’t carrying any hedges, just naked selling, so no issue with margin increase while exiting or anything.
Lastly, SPAN issue comes when there’s heavy movement post 2 pm. And today was actually pretty dormant post 2pm. So, really strange that margin increased so much (if that’s the reason anyway).