@nithin I have a question regarding Zerodha RmS ( Auto square off ) . I have Cash of 1lakh in Kite and rest via pledged equity ( for margin requirement ).
If I have sold an ATM Call option ( 10 Lots )in bank nifty at price of 100 … and I have a SL-limit order of 130 …Incase of a freak trade the price of the option goes to 2000 ( for eg ). My notional loss will be 2,85,000.
( I have only 1lk in Cash and rest in pledged equity )
Will zerodha Auto square of my position because of margin shortfall/Cash Shortfall ?
If So, what price will it square it off .
Also, Please mention steps to take to avoid auto square off.
Thanks,
Sahil
We will not square off because of a freak trade.
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