Zerodha Additional margin Long options

Additional margins blocked for existing long options

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Additional margins may be blocked for existing long option positions in certain scenarios, even though long options theoretically have premium-only risk:

Scenarios

ScenarioWhy additional margin
Near-expiry physical settlement (stock options)Pre-expiry margin layer
Volatility spike during sessionSPAN parameter refresh
Risk-management policy by brokerInternal RMS rules
Specific contract restrictionsExchange-imposed

For long positions specifically

Standard rule: A long option pays the premium upfront; no additional margin needed.

Exceptions:

  • Stock long options close to expiry: Physical-delivery margin pre-expiry.
  • Multi-leg positions: If hedge structure changes, additional margin may apply.
  • Long options in a portfolio with short options: SPAN-adjusted but specific cases.

Resolution

If additional margin is unexpectedly blocked:

  1. Check position status (near-expiry?).
  2. Check overall portfolio (hedge structure?).
  3. Contact Zerodha support if unclear.

See also

External references

References

  1. NSE Clearing, Long option margin treatment, nseclearing.com.
  2. Zerodha, Margin policies, zerodha.com.

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