Why does Zerodha square off positions?

Zerodha may square off positions in the following scenarios:

1. Your positions can be squared off if the collateral value from your pledged stocks reduces due to increased haircuts or if the value of your pledged stocks drops. You can find the haircut percentage for approved securities at Zerodha by visiting zerodha.com/approved-securities.
2. Your positions can be squared off if you do not close your intraday positions before the designated square-off time.
3. If your MTM losses exceed 50% of the funds in your Zerodha account, your position may be squared off.
4. If you do not maintain the required margins to hold your position, Zerodha sends you a margin call SMS and email notifying you to add funds. Zerodha may square off your position if you do not add the required funds.

Auto square-off charge of ₹50 + 18%GST will be levied for each order squared off by Zerodha.