Hi team,
I have raised ticket #20260328415578 but would really appreciate an urgent review on this
My account currently shows
Available margin -15,43,961
Used margin 1,58,86,276
Total collateral around 1,13,83,914
Opening balance 36,41,195
Given the collateral and balances this margin shortfall seems higher than expected and I want to clearly understand if this is accurate or if something is being calculated differently
Requesting help with
A step by step explanation of margin calculation
Confirmation if there is an actual shortfall
Any immediate action needed from my side
Highlighting this here as this could have led to position level risks on a trading day
Right now, zerodha is running on trust-me-bro mode. The support team can’t answer basic questions…takes them a week to give incomplete replies and then they mark tickets as resolved.
For @nithin managing a business like stock broker, the only moat is trust - but that’s also drying up fast now. If I am able to survive this stupid war, will sure explore trading with multiple brokers.
The Saturday/Trading holiday MTM calculation will be based on the previous day’s close price i.e Wednesday’s close price (as Thursday is holiday)- current LTP. Funds page is showing margin+mtm.Once we update the Friday close price (usually it will be updated on Monday morning 7 Am) it will be fine.Shared the MTM calculation in direct message for your positions.
Why not do it today? Most of the times when I see a shortfall in my account on a Saturday, I arrange for funds to cover it. But now you are telling us that number is outdated and actual shortfall will be updated only on Monday morning?
Please tell me you don’t charge DPC/ Interest charges on this notional number!
SEBI is so focused on micro managing retail traders that it has given brokers a free pass to do whatever they want, smh
If we update the close price of Friday, then in kite market watch every scrip movement will be turned zero as LTP and close are same and it wipes out the visual record of Friday’s market performance during the weekend. This will affect only the mtm calculation and little difference in exposure margin.Span margins are already updated correctly in funds page.
@Ragavendran_M for my understanding, can you please also clarify charges over the weekend if I don’t add any funds today.
Both for actual margin short fall (~8.6 lakhs) and the MTM component (~6.8 lakhs)
There will be no interest charges on the MTM. Interest is charged only when there is a debit balance or a margin shortfall. The charge is 0.05% per day on the actual shortfall (8.6 lakhs), and 0.035% per day if the cash is not maintained as per the 50:50 rule. Overall, charges apply only to excess utilisation of funds or to shortfalls. Check this link.
Hey, so for everyone’s benefit, can you please share the calculation logic here? Because I’m totally confused now reading newer replies. Unlike the screenshot shared by OP, my margin balance adds up as of today (Total collateral + Opening balance - Used margin = Available margin), even with mtm losses from yesterday.
Does this mean I should expect additional margin requirement on Monday morning? And why is it not consistent across accounts?
Can you elaborate please? From the screenshot I can see there’s a margin shortfall of 15L. However in the same ss, Total collateral+ opening balance - used margin is 8.6L.
Let’s assume more than 50% of the margin is cash equivalent. So now for the margin shortfall, are you saying no 0.05% interest will be charged? Or it’ll be charged on 8.6L shortfall? Or on the 15L shortfall?
The calculation is straightforward. Say you have 1 lakh blocked for SPAN and exposure, and you take a 20k MTM loss on a short option during the day. That 20k is deducted directly from your available margin, reducing your overall balance. However, this MTM loss won’t be factored into your interest charges if you are holding your position overnight.
We actually updated the SPAN files on Saturday. If the exchanges tweak the margin requirements on Monday morning, the system will reflect that in real-time, and you’ll just need to manage your funds or positions accordingly to cover it.
Here, 0.05% Interest will be charged only on the ₹8.6 lakh shortfall, not on the ₹ 15 lakh figure. As mentioned in the earlier reply, the charge applies to the net shortfall after accounting for your collateral and opening balance, not the gross margin gap shown in the screenshot. Please check this link to know how the 5050 rule works.
