What happens to span margin requirement when I square off my position that I had bought out earlier?

After limiting my loss by using a bull call or bull put spread. If I sell the premium that I had bought at profits and let the sold call or put (other) be the way it is, in anticipation of the option to expire useless and bagging the full premium. What happens If I’ve already incurred 70-80% of the margin as loss but I hold cash in my account due to booking of profits. Will my position be squared of by zerodha?

All F&O gets settled on the exchanges on T+1 day basis. So if you have made profits from options, and you sell, it actually gets credited to you on the next day.

If you have exited the long option of a bull call spread with profits, the margin requirement for the short option will go up significantly as soon as you exit the long option.

Our RMS team may not square off your short option because you have unrealized credit from the option sale. But since this is unrealized, exchanges will charge a short margin penalty if you don’t have any additional cash margin.