What is Obligation Amount as part of F&O contract?

I guess you are referring to the margin amount.

Margin amount is the minimum amount required to initiate a Derivative trade.

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Obligation amount in futures refers to the margin blocked for the position on the trade day (T day) & includes Mark - to - Market (profit / loss) for that day. From T +1 day Incase of overnight position, MTM is calculated based on the previous closing price, based on this obligation(profit/loss) amount is debited or credited from your available balance till the position is squared off.

In case of options there is no daily MTM settlement. It will settled based on you execution price Buy & Sell or vice versa.


What is the entry F&O Obligation amount mean in Ledger with respect to Options. In the past few months I have been trading in options(both selling &buying) and losing money from my Zerodha account due to this. I am losing this amount irrespective of whether I am making profit or loss. I want to understand how to prevent this from happening. I am always have positive balance showing up in Margin available field in side Kite. Please help me

FNO obligation is just an options premium and futures MTM(mark to market)
margin blocked(span and exposure) will show in separate entry in the ledger.

Why this is not shown here in the calculator => https://zerodha.com/brokerage-calculator#tab-equities

What does this means ?

My Overall position loss is between 700-800Rs
Then Why it deducted 4230.29 ?