Some quick questions - Futures trading - My Cash balance

Hi my name is Jithu Krishnan, i have recently started trading with zerodha. please helpme out a bit.

I initially deposited 50000rs in my account and i did a few trades in futures, first one was done in NRML mode and i kept it last night(since it was trading way low) and sold it today - bought at 144.7 sold at 146. and after that i made two trades today for small profits aswell. so the questions are twofold. please keep in mind that apart from some theoretical knowledge of stocks and shares, i am a complete newbie.

Q no. 1 What does this mean - do i have 53863.03 in my trading account or is it actually 44663 ( which means i am loosing money.)

Q no 2.  Consider this scenario - i bought rcom furutres stock 2000 lot for 144.70rs yesterday in NRML mode, however after that the share was going down and it was trailing around 141 something. so i didnt sell it and today morning when i checked out Admin posissions it was showing some 7900rs debit as M to M.  Does that amount signify the lowering of value of futures after i bought it yesterda ie from 144.7 it closed at around 141yesteray.

If so, today morning however i sold the lot successfully at 146rs, and i calculated using zerodha brokerage calculator here and it shows 2800 something profit.

Did i make actually that much profit or did yesterdays loss and resultant MtoM debit of 7900 actually bite into my profits and the result is rs 44663 as shown above ?

 Q no 3. If my account has rs 53863 as net then why is my cash limit 44663 ?


Dear Jithu Krishnan,

Q. No 1. Your opening cash balance was Rs.44663 (after the M to M calculation for 3rd july, 2014)and there is credit of Rs.9,200 from RCOM trade and which is added to your cash balance, So cash margin stands Rs.53,863.  

Q. No 2. Future's MTM works under daily basis based on the closing price of the contract. In this scenario, RCOM future's was bought at 144.70rs. and MTM calculated based on RCOM future closing price. So, next trading day, RCOM future opening price will be previous day closing price and MTM will be calculated accordingly. 

Q. No 3. Cash limit will be shown according to opening balance of your ledger and margin calculation will be adjusted in Margin used column. 



Thanx man :slight_smile: