Zerodha Shortfall

Margin shortfall instances

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Margin shortfall occurs when the margin used exceeds the margin available. Common scenarios that trigger shortfall include:

Common shortfall scenarios

ScenarioDetail
MTM lossesOpen position depreciates; margin used (MTM-adjusted) rises
SPAN file refreshMid-day SPAN update raises margin requirement
Pledged collateral depreciationPledged equity falls; collateral value drops
Cash component shortfallCash falls below 50% of F&O margin
Pre-expiry physical settlement marginStock F&O 4 days before expiry adds margin
Volatile day additional marginExchange-imposed additional margin
Failed paymentPay-in attempt failed; margin not covered
Time-decay lossesLong option positions deteriorate

How they’re identified

The clearing corporation reports shortfalls daily. The broker (Zerodha) receives the report and notifies you via SMS / email per the Margin shortfall penalty notice .

Prevention

  1. Maintain buffer (50%+ above minimum margin).
  2. Avoid leveraged positions on volatile days.
  3. Cash component sufficient (50%+ of F&O margin).
  4. Close positions before pre-expiry margin spikes.

See also

External references

References

  1. SEBI, Margin shortfall reporting, sebi.gov.in.
  2. NSE Clearing, Daily margin reporting, nseclearing.com.
  3. Zerodha, Margin policies, zerodha.com.

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