How are the values seen in the funds section calculated?

Let us briefly understand what each of the items seen on the funds screen mean:

  1. Cash balance: It comprises of the opening balance i.e. cash in your trading account at the beginning of the day and any deposits made by you after the cutoff time of 5:30 pm since last working day till now.

  2. Margin from shares: The overall margin received from shares comprises of three numbers:

  • Margin as per previous day closing price: You would receive a margin for the quantity of shares basis the previous day's closing price after a haircut reduction to provide a cushion for fall in share price during the day.
  • Revaluation: If the current share price is lesser than previous day's closing price, then the margin provided would reduce to the extent of fall in price today.
  • Sold today: Your margin would reduce due to shares sold today. However a similar margin would be provided in your cash balance.
  1. Used margin: This is the amount that you have used towards trades during the day.

Available margin is the amount can be used to place new trades and is calculated as below: Available margin = Cash balance + Margin from shares - Used margin