Will I be charged Penalty in the following case?

Say Nifty 8600 CE is at 50 Margin required is 50000 to write/short 8600 ce & I have exactly 50000 in my trading account. I short it and buy it on the same day at 45. Now 1) Can I buy and sell again on the same day? 2) Can I short again on the same day? If Yes, can I hold position overnight for above case? How much will be my penalty if any? Also can any one tell me how margin is calculated on shorting options. I’ve read but unable to understand. Take the following scenario 1 lot of Nifty trading premium @Rs 50 4 lots of Nifty trading premium @Rs 50 Lot size-75 What will be the margin required in both the above case?

1) Yes, you can. to buy the option, you'll only need 75*50 = 3750. Since you have more than 50,000 (including profit made on short trade), you would be able to buy the option.

2) Yes, you can. If the margins remain the same, you can carry forward the short position, assuming that the markets haven't moved drastically so as to cause you loss resulting in reduction of margin money.

Margins are calculated using a proprietary software called PC SPAN, parameters defined on this link


  1. What if I had made a loss on Short trade and had less then 50000 in first case?
  2. In carrying forward short position do I have to pay any charges apart from usual brokerage and other charges from zerodha or SEBI?
  1. If you’re short of margins, you can’t carry forward positions.
  2. No additional charges are levied.