The client shall be responsible for squaring off all open positions. While Zerodha may square off positions, it is under no obligation to do so. The selection and sequence of such square-offs are at Zerodha's sole discretion. Zerodha shall not be held liable for any loss or damage resulting from exercising or not exercising this right. To learn more, see
Risk Disclosure Document (RDD).
You must add funds to your account by 11:59 PM on the same day if there is a margin shortfall in your account to avoid the following:
- Margin penalty: The exchange may charge a margin penalty for the shortfall in the margin requirement.
- Increase in margin for additional positions: Margin requirements for additional positions could be increased if the account has a negative balance or margin shortfall.
- Squaring off of positions: Open positions can be squared off to reduce margin requirements.
If the Zerodha account has a negative balance, or if the collateral margin cash shortfall exceeds ₹5 lakhs, a brokerage of ₹40 per executed order will be charged instead of ₹20 when placing an F&O order. Regulations require at least 50% of F&O margin to be in cash or cash equivalents, with the remaining 50% from pledged securities.