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Why should clients transfer funds to cover margin shortfalls?

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.

A brokerage of ₹40 per executed order will be charged instead of ₹20 while placing an F&O order if the Zerodha account has a negative balance.

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