Short Margin Penalty

F&O
1

I have been charged short Margin Penalty for Trading in F&O . Is there any way to know the short Margin deficit before the market closes so that atleast some of the Position could be closed.

Can kite have a feature to know know margin deficit … @siva @nithin

I know that margin available doesn’t give the true picture about Margin statement

For example : Today for my account

under Margin available in funds tab shows - 29K but

when I received my Margin statement it was shocking 1.71 lakh deficit for which I will be charged a penalty of 1.71k which is 1% . Which increases to 5% after 5 instances.

Can anyone help me with how do I know the deficit.

I trade such that I close trades of this week expiry and take trades for next week expiry immediately. this is causing the margin deficit but how do I calculate that.

I would be greatful if someone explain with example or point me to detailed explanation.

1 Like
2

Can check this.

This is very tricky but we are working on this.

3

Please have a system to alert the client if his account is going to deficit considering all the Margin , T + 1 , T+ 2 settlement cycle… this way client could avoid unnecessary penalty which are huge…

Any timeline when we can expect this feature. This is necessary since penalties are Huge …
@siva @nithin

I read in some post that Geojit Broker already has a system to alert the client…

On checking statement of few month I discovered that I have been charged penalty of nearly 10k…:sob::sob:

4

Can’t give any ETA but this is on our top list of things to do.

1 Like
5

Ok thank you .

6

BTW, today I see a huge gap in SPAN blocked (4x more) for hedged positions in the account vs. margin calculator.
This is in my (wife’s) account.
I checked this yesterday night. Thought I would wait till morning if it gets corrected. but no.
I opened a ticket. Hoping that it would be addressed in rightful manner :slight_smile:

At the time of taking these positions I had more than 10% of capital un-utilized. Yet, by dawn, the difference.
For exact same positions, the margin blocked is way less in other broker account (samco in this case).

2 Likes
7

What if cash balance goes negative but still having pledged margin? Is there any penalty? @s

8

When your cash balance goes in negative, there is interest of 0.05% charged per day on the debit balance.

3 Likes
9

Opening balance is settled funds. right ? We have to take position based on opening balance.

10

I had a hedged position in Asian paints I by mistake closed the buy option first resulting in margin short fall
Transiently my account showed -2200 then I closed my sell position
I want to know how much penalty will be charged?
Please reply
@nithin @siva @ShubhS9

11

This is explained in detail here.

1 Like
12

1 percent of the short amount
Or the total margin required sir?

13

Penalty is on amount you are short by.

14

And sir I somehow feel like I’ve been charged 3.5 k
Which is more than 1 percent of the margin required

15

You can create ticket.

16

@siva
The penalty is for only overnight negative balance or in negative only for 1 to 2 minutes within a day ?

17

We are now under Peak Margin reporting regime, what this means is Clearing Corporation now takes snapshot of traders position at random times on five occasions throughout the trading hours to check whether sufficient margins are available.

If there is any shortfall when CC takes these snapshots, there will be peak margin penalty. You can read this post for detailed information.

18

Sir I wanted to know that can there be a margin penalty in case of a hedged position
In case the loss in the short position is a lot negative and more than the funds in the account
But there are significant profits in the long position
Which leads to a mild total loss

19

It has nothing to do with loss, make sure you have enough span +exposure at all times with free cash.

20

Thank you sir
Sir n case one position of mine has 10,000 loss and the other position has 8000 profit so the requirement of the cash should be 2000 rupees or 10000 rupees
Apart from the span plus exposure