How to meet FnO delivery margin ? Does it require cash compulsorily or is it the case that it can be met with both cash and collateral (liquid & equity), but Zerodha gives preference to blocking cash first and if cash is insufficient, only then collateral is blocked?
Thanks!!
No, we first block collateral and then only cash.
It should be a minimum of 50% cash/liquid collateral and rest equity collateral.
Thank you Siva. My understanding was also the same as your response.
But last week, I had X lakhs amount of liquid collateral (T Bills and SGB) and Y lakhs in cash. The total margin requirement including delivery margin was X-4 lakhs (i.e margin requirement was lower than the liquid collateral available). Yet the available cash was lower than the opening balance exactly to the extent of delivery margin. How can you explain this? Thank you!!
@siva , I request you to check if there is a policy change and revert. I had first raised this on Kite support, but the responses I was getting was at a “badly designed AI bot” level. Just random copy paste from content on the support portal (all of which I had gone through before raising the support ticket) without addressing the specific question (the question raised in this post) I had raised.
Thank you
We block collateral only for delivery margin if available. You can let me know next time when your cash is blocked instead collateral for delivery margin.