General Queries

What happens in case my F&O Limit goes negative due to placing Option Buy order at Market price?

The main reason is that when the client places the market order the required limit at order placement time is different from the time of order execution.

Example: I have balance 6500 in my F&O limit

I placed a market order of 2 lots of nifty at ₹49

So premium I paid = 130*49= ₹6370

At the time of order execution, the price went to 51

So now the premium = 52*130= ₹7020

So, my current limit goes negative by : ₹7020- 6500 = -₹520