Why Zerodha Blocking Short Option Premium as Margin

@nithin @siva

Suppose, I have taken these positions last week.

The Margin that was supposed to be blocked is 10,94,645.25/-, However you have blocked 13,36,350.00/- and more while today trading session and for one moment today it was more than 13,86,000/-


WHY YOU HAVE INCREASED THE MARGIN POST TAKING POSITIONS AND IS IT THE CASE THAT YOU ARE ADDING AND BLOCKING THE SHORT OPTIONS PREMIUM MARGIN AS WELL ???

Looking forward for your prompt response with details.

Even Sensibull states the margin as 10.85L
Screenshot 2021-08-16 at 6.12.01 PM

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@siva @ShubhS9 @Bhuvan Can You Reply on the above query

Can you message me client ID?

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As and when the volatility increases the margin keeps increasing throughout the day, plus I think zerodha has some extra margin condition as expiry closes by. But again all this is assumptions as I have no idea how this margin framework works. Hope it helps.

Basket shows final margin after considering premiums, in this case you received 2.62 lakhs as premium by selling those puts so it is showing final margin as 10.9 lakhs and you need to add premium of 2.9 lakhs to that. Span and exposure is 13.3 lakhs and your own cash blocked is only 10.9 lakhs and rest is premium you received by selling those puts.

Margin keeps changing during the day based on volatility as NSE keep updating new margin files during the day. So, it is always recommended to keep a minimum of 10% as additional cash to cover these cases.

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@siva Thanks for clarifying, Now i have a better clarity about the Zerodha margin calculator.

Now

I had kept the buffer of more than 3L, however Zerodha has not credited / reflected the same in the funds section today. Refer screenshot of ledger below from zerodha console.

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That was the result due to settlement holiday . @siva am I right and it would be better if you can push a mail for this , a lot of people can get confuse.

Yeah, today was settlement holiday, we have sent email and also did kite push for those clients.

Thanks for clarifying.

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