Margin shortfall calculation after pledging

F&O
1

Can someone please tell the difference between the available cash and available margin on the funds page?

I have some cash equivalent and non cash pledged margin and some cash. and have some positions.

I am buying options from it.

When I am placing a new order, my available cash is going negative but the available margin is positive even after that.
Is this a shortfall of funds?
Will my available funds (for which shortfall will be calculated), is
a) avaiable margin?
b) available cash?
c) available margin + available cash?
d) or something else?

Please help.

2

@Jay_Mundra
For trades using collateral, the margin requirement must be met with at least 50% cash (or cash-equivalent) and the remaining 50% can be from non-cash collateral.

  • Cash: Actual cash balance
  • Cash collateral: Liquid funds, SGB, etc.
  • Non-cash collateral: Pledged stocks, equity mutual funds

For example, if the total margin required is ₹1,00,000:

  • You have ₹30,000 as cash component
  • ₹70,000 as non-cash collateral

Although the total margin requirement is met, the cash portion is less than the required 50%, so the system shows a negative cash balance.

This does not attract interest for intraday positions, but for positional trades, it is treated as a shortfall and may attract interest.

3

where can we find either we are in shortfall or not? any place in console we can see it? @siva @Arockiya_Raja

4

So in intraday, if this goes to a negative balance. 40 Rs won’t be charged?

5

@Harshal_Sakare
Actually I have cash component margin available.
I can use it to buy options, right?

6

Yes you can trade in options.

7

Can check this.
In simple terms if cash balance is negative from there on any trades in fno are charged 40.
Available cash column in funds page.

2 Likes
8

@siva trades only above negative 5 lakh, right?

1 Like
9

Yes above 5 lakh cash shortfall 40rs brokerage will be applicable.

2 Likes