When you sell an existing carry-forward long option position, the sale value is not immediately available to take new short option positions.

Example

Balance After Sale

Issue

• You try to sell 1 lot of Bank Nifty Options requiring a margin of ₹1,38,000.
• The order is rejected, even though your account balance shows ₹1,60,000.

Reason

1. The sale value of the carry-forward option is only released by the Exchange on T+1 day.
2. Margins for fresh short positions must be available upfront in clear balance.

Key Takeaway:
Even though the sale value is visible in the account, it cannot be used for new short option positions until the Exchange releases the funds on T+1. However, you can use the amount to take fresh buy option positions.