Why "used margin" is displayed even when all positions closed

Zerodha
1

Hi,

I trade derivatives. When I close all my positions ( there are no open orders or positions) an amount is displayed in the “used margin” section in zerodha the same day. Why ?

Will this “used margin” amount added to “Available cash” next day or in the collateral margin?

thanks

2

Hi @Mahadevan-Iyer

Used margin basically gives us an idea about the amount used or credited from today’s transactions. mainly used to denote how much margin we have used/received when compared to yesterday’s closing amount which is denoted by available cash.

Used Margin is:

  • The net funds used for executed equity intraday, F&O positional/intraday trading, and delivery orders.
  • The funds blocked for open orders that have not been executed yet.
  • The amount displayed as the used margin when selling shares or holding open F&O positions.

Used margin - This is the amount used towards trades during the day and will include funds used for purchasing instruments, option buying, intraday equity and F&O losses, etc. This also includes the blocked amount for open orders. This field would be negative if funds were generated by selling holdings, closing long options positions, etc.

When positions are squared off, the used margin is credited to the Available Margin.

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