Hi, I was trying to understand a practical but tricky interface of re-utilisation of released margins on a squared off FnO trade, exchange penalty for margin shortfall and interest charged by zerodha for cash/equivalent shortfall. I’m putting my understanding in following points by giving an example:
Suppose I squared off an option position in SBIN today.The margins are released, and are shown immediately in kite(am I right?), But they are not available to take fresh positions till T1 day.
If I take another trade in xyz scrip same day and margin is “actually” not available, I will be charged certain amount by exchanges (~Rs500?) for margin shortfall.
If still somehow, margins pledged by stocks are available, but there is lesser than 50% obligatory cash, there won’t be any exchange penalty, but zerodha will charge 0.05% interest on cash/equivalent shortfall.
I request for comments whether my understanding is right.
@siva Can u plz!