Articles in “Margin Penalty” category
8 articles.
- Peak margin on hedged positions
How peak margin reporting treats hedged F&O positions. The SPAN hedge benefit applies; peak margin is computed on the hedge-adjusted SPAN.
- Mark-to-Market (MTM) explained
Mark-to-Market (MTM) is the daily revaluation and cash settlement of F&O positions to the current price. Explains the mechanics and effect on margin.
- Margin shortfall instances
Common scenarios that cause margin shortfall in F&O / equity intraday trading. Helps anticipate and prevent shortfalls.
- Margin penalty entries on ledger
How margin penalty (SEBI shortfall penalty) appears in the Zerodha Console ledger. Covers entry format, reconciliation, and dispute path.
- How margin penalty is calculated
SEBI's margin shortfall penalty rates: 0.5% to 5% of the shortfall per day depending on the size. Explains the calculation with examples.
- Freak-trade loss penalty
Freak trades (extremely off-market executions) on NSE / BSE may trigger trade annulment or specific penalty treatment. Explains the framework.
- Exchange penalty rates
Exchange-imposed penalty rates for margin shortfall, order errors, and other violations. Per SEBI's framework: 0.5%, 1%, or 5% per day.
- Additional margins blocked for existing long options
Sometimes additional margin is blocked for existing long option positions. Explains the scenarios and how to resolve.