I had sufficient margins in my account based on which I took the position, despite which a penalty was levied.

Modified on Thu, 21 Jul 2022 at 03:45 PM

A margin penalty is levied in below scenarios:

  1. Change in margin requirement from the exchange end

  2. Change in requirements

  3.  Based on your trading (example, exiting one of multiple hedge positions)

  4. For long Options positions (ITM), Margin requirement increases as it nears expiry date.

Note: In case you incur a margin penalty, the cut-off/ due date for reporting margin is T+5 days, so we post the entry on your ledger once we get the penalty file from the exchange i.e on T+6 day. There may be a provisional block in your account during this time period.

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