Hi
Okay so I’ve searched a lot on the internet and I’m still not able to understand this concept.
I’ll try my best to explain this and any help would be greatly appreciated !
So basically I have more than 70 percent of my capital invested in cash equivalents ( overnight fund, nifty bees etc) and maybe around 20 percent in idle cash for buying hedges or quick trades.
I took up a trade last month for the banknifty monthly expiry and sadly the trade didn’t go my way and I held the trade till expiry and exited on 30th October . It was a basic iron fly and the put well leg had ended up deep itm but I still managed to buy it.
After closing the trade I realised I have negative cash balance of only the loss leg and I can’t find the credit of the leg that had some profit in it.( the trade ended up in a loss of 1l including the profit of the other legs but my cash balance is showing negative 3l)( where is this 2l gone ?)
Why wasn’t the balance taken from the collateral margin ?
I deposited more cash to remove the negative balance but where is this 2l gone ?
I’m quite confused still even after reading that collateral is not mentioned in the funds statement but yeah
Any help would be greatly appreciated !
Cheers!