Alice Margin ShortFall - Quick Insight

In Zerodha, When you get a margin shortfall what happens is they generally charge 24% yearly on a daily basis. Like, If your shortfall is 1,00,000 INR. Then, the interest will be (24,000/365) = 65% INR.

While Alice reports to NSE, and it entails a penalty over 1% which is almost most of the time our half weekly profit. But, The primary question, How we are able to take that amount of huge -ve margin?

Here is a case that happened today -

I usually don’t scan for -ve margin because I never expected that amount of negative margin because broker is not supposed to allow to take trade in negative margin-right?


Firstly, I thought it happens because some of my customers have fucked up habits of checking the account in between market time.

Usually they don’t make money. They make brokerage only because some day some time it ends up in huge loss because exits are sharp in events of vega. Also there are some who will manipulate you to their will (They try hard.) - Like why you take that, I think it will do that.

Like I should care about their dick. The best investors are dead. They don’t come online much. Anyways, that is offtopic. So I found the dead customer category also had this problem which made me think!


Today I observed that when I went to 22100CE,22300CE pair. I usually take in 1lot 1lot pair. It is because most of my customer have 0 brokerage and another point is It gives me a clean idea of margin.

Like if I don’t have margin, the buy leg may get execute but the sell won’t! Right? I will have enough time to fix my mistake as buy leg has positive vega.

22300CE Buy gets executed first.
22100CE Sell gets executed later.


Today 22300CE Buy when thrown it was stuck as “Validation Pending” and for some reason Alice allocated margin for 22100CE Sell and then decided to reject 22300CE Buy order because it doesn’t have margin.

Its mindfuck.


How to solve?


I converted all CE to MIS.
Then, I did 2 lot 22300CE buy.
Now I converted back.

This is the best way. Right? First, I thought they will not allow to convert because you have -ve margin but to my surprise they did. Also, I did the CE buy.

Now, they didn’t allowed to covert it back to NRML.



Happened here as you can see. I am unable to convert. But if I close the MIS trade and take in NRML it will work.

Anyways, My job was to find a solution than being sherlock holmes.

Way 2:

Close Sell 2 Lot.
Take Buy 2 Lot.
Wait for 2 mins and check if order status is complete.
Take Sell 2 Lot.


What other solution there can be here?