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Why do I need margin to exit my F&O position?

If you are seeing a margin requirement when trying to exit your position, it’s likely because you already have an open order on your position.

Existing Open Order Conflict:
You might have an existing open order to exit your position (e.g., a Stop Loss (SL) or Limit Order). When you attempt to place another exit order (e.g., at Market Price), the system treats the second order as a new position, requiring additional margin.

Example
  • Current Position: You hold +100 in an F&O contract.
  • Existing Open Order: A Stop Loss (SL) or Limit Order is already placed for 100 quantities.
  • Action Taken: You place a new Market Order to sell 100 quantities.
  • System Behavior: The system interprets this as creating a new short position (since the first open order is still active), requiring additional margin. The new order will be rejected if sufficient margin is unavailable.
How to Avoid Margin Requirement:
Option 1: Modify Your Existing Order to Market Price
  1. Go to the 'Stocks' section on the homepage.
  2. Tap on the 'Orders' tab.
  3. Select the open order you want to modify.
  4. Tap on 'Sell at Market order'.
Option 2: Cancel the Existing Order and Place a New One
  1. Go to the 'Stocks' section on the homepage.
  2. Tap on the 'Orders' tab.
  3. Select the open order you want to cancel.
  4. Tap on 'Cancel' and place a new order.
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