We already know how the Extreme Loss Margin (ELM) is calculated, so why doesn’t Zerodha include a feature in Kite that shows the exact margin required on expiry day for open option legs in real time?
Because I have received confusing email and call from zerodha with completely wrong/delayed calculations.
You mean to say additional ELM margin which is applicable on expiry day for short options? You want us to show this margin requirement on other days as well?
We cannot show it before expiry as it may create confusion, and it’s also not possible to show the exact probable margin since it depends on the underlying’s close day before the expiry.
the formula is: Additional margin (per lot) = 2% × Underlying price × Lot size
if the email you received seems incorrect, please share the details we’ll get it checked.
Hi Adarsh,
I have attached above the screenshot of the email I received and also a automated call around 11 pm. Surprisingly despite me having sufficient funds in the account based on the ELM formula.
So I did not add any additional funds and the next day I continued trading without any position being squared off.
You already have the live price of the underlying and the details of my position. Your emails are more confusing.
Receiving confusing calls and emails like this at night is disturbing and frustrating.
Hey Anand,
Can you DM your client ID? We will get this checked.
Sent
Both emails serve different purposes. The provisional margin shortfall is based on your overall trades you have done for the entire trading day, which includes closed positions. This will help to figure out if there is any extra margin used for the day. In case of any hedge breaks. This email will help you figure out the shortfall amount to avoid penalties.
However, in your case, the wrong email was triggered. We have rectified the issue. Please accept our apologies.
Regarding the second email, the one you received after market close at 3:55 PM, reflects the additional ELM margin required, based on your position at that time. We did not consider your available funds in this email; it simply indicates the extra ELM margin requirement.
The intention behind adding the next day ELM margin is to give you an idea of the margin requirement for the following day and to help identify any potential shortfall in advance.
Please ignore the earlier email. an email was wrongly triggered earlier we’ve rectified the issue.
