Short Margin Penalty

F&O
42

NO. you have paid the premium amount.

43

Buying Option doesn’t require margin. Also, you pay the entire premium upfront. So there won’t be any penalty.

45

Where can you see the short margin penalty charge?

46

This will be posted on your ledger. If you want to know at what rate the exchange charges the penalty at, you can check this here.

1 Like
47

Do you think for this margin stmt I should get charged short margin penality…

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48

@siva @Nakul @nithin

Would it be made possible to trigger an email / sms when ledger is charged with short Margin or any other panelty.

  1. Short Margin
  2. Peak Margin
  3. Interest Panelty
  4. Other special one time charges

This would help clients to know, understand and correct their mistake for next time since many wouldn’t read the ledger everyday.

Others could add different Panelty if I missed any

5 Likes
49

Point is noted, will check internally on the possibility.

2 Likes
50

Margin penalty charge debited on the ledger by the brokers.
How can I check / verify/ make sure . With the exchange or the clearing corporation. that the amount charged by the broker is actual genuine and not higher ?

1 Like
51

@siva I noticed some of mid sized firms use to call clients after one week of shortfall and ask for pre dated cheque to avoid penalty . I know it might not be possible here ,just want to get your opinion in this

52

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This rule exists in the Exchange FAQ. However I would be wary of a broker circumventing Exchange rules and collecting backdated checks.

1 Like
53

Yesterday when market closed I had a cash balance of Rs.32000. I even remember checking at 8PM and it was still the same. Now today morning when I log in its showing negative 76k.

  1. Will I be charged interest?
  2. Will there is penalty?
  3. If any of the above are there when will it be posted to the ledger?
  4. What’s the narration given for the same?

Also, if it was made know to me even after market hours that my cash is negative I would have added funds. Now if internest and penalty is charged I might have to pay it even after having idle funds in my bank account.

1 Like
54

Same with me… I immediately added money… not sure if I will be penalized…

55

I manage 4 accounts of my family members and all got margin utilisation of 101 percent.

56

Can i use famaly member trading account money to mitigate the overnight penalty interest ?

57

AMT DEBIT FOR SHORT MARGIN TRD penalty charged by the broker on the ledger !
how do i check / verify / authenticate the genuineness that the broker actually charged the client , because the exchange charged the same to the trading member ?
should i call/email ask to the exchange ? or should i ask any file folder proof from the broker ? or should i just trust the broker in goodfaith ?

How do i verify the penalty is actually charged is true?

@Prayag
@siva

1 Like
58

Some kind of invoice he provide?

59

You mean that the broker has to provide a gst invoice to the client for the penalty charged?

60

Yeah.

1 Like
61

Is there anything else should i ask from the broker ?
Should i conter check with the exchage ?
If the broker gives the email that so and so penalty is charged and refuse to give the invoice then there is something fishy?

Am i right ?

62

I am not sure, just ask if they provide invoice first.