Why should clients transfer funds to cover margin shortfalls?

Clients must add funds to their Zerodha account by 11:59 PM on the same day in case there is a margin shortfall in their account to avoid the following:

• Margin penalty : Margin penalty may be charged for the shortfall in non-upfront margins. To learn more about the penalty on non-upfront margins, see zerodha.com/z-connect/queries/stock-and-fo-queries/margins-margin-penalties-when-trading-with-leverage.
• 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.

Did you know? 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.