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Even though I have the required SPAN margin for the trade, why was my open position squared off?

Brokers must collect the entire SPAN + Exposure margin, rather than just SPAN margin, to carry forward Futures and Options positions to the next day, according to the recent SEBI and NSE circulars.

You will be charged a margin penalty by the exchange and your position may be squared off by our RMS team if you do not have the entire margin required to carry forward the position (which can be found using the margin calculator).