How is withdrawable balance calculated after pledging?

How is withdrawable balance calculated after pledging?

When you pledge securities, the calculation of the withdrawal balance becomes crucial to understanding your actual available funds. Here’s a detailed explanation to help you comprehend how the Withdrawable Balance is determined after pledging:

 

Components Deducted from Ledger Balance:

  1. Today's Payin:
    • Funds added to your account today cannot be withdrawn on the same day.
  2. Today's Payout:
    • Funds withdrawn today are subtracted from the available balance.
  3. Adhoc Margin:
    • Any margin amount updated in Adhoc is deducted.
  4. Booked Losses:
    • Losses that are realised and booked for the day are subtracted.
  5. Unbooked Losses:
    • Losses that are anticipated but not yet realised for the day are also deducted.
  6. Pending Orders:
    • Margin blocked for orders that are still pending execution is deducted.
  7. Turnover Charges:
    • Charges incurred based on the turnover in any trading segment are deducted.
  8. Accrued Charges:
    • Charges that will be levied at the time of billing, if any, are deducted.
  9. Unsettled Credits:
    • Funds from same-day equity sales or derivative credits that have not yet settled. An extra day's credits are included in case of settlement holidays.
  10. Margin Utilised:
    • Margin utilised for orders placed or the peak margin requirement for the day, whichever is higher, is deducted.

Components Added to Ledger Balance:

  1. Collateral Benefit:
    • The margin blocked for open positions or carry-forwarded positions is compared with the collateral value after the haircut (MF+Liquid+Equity). The lower of these two values is added as a collateral benefit.

Calculation Formula:

Withdrawable Balance=Ledger Balance−(Today’s Payin+Today’s Payout+Adhoc Margin+Booked Losses+Unbooked Losses+Pending Orders+Turnover Charges+Accrued Charges+Unsettled Credits+Margin Utilised)+Collateral Benefit

Example Scenario:

  • Ledger Balance: ₹100,000
  • Today's Payin: ₹10,000
  • Today's Payout: ₹5,000
  • Adhoc Margin: ₹2,000
  • Booked Losses: ₹1,000
  • Unbooked Losses: ₹500
  • Pending Orders: ₹8,000
  • Turnover Charges: ₹200
  • Accrued Charges: ₹300
  • Unsettled Credits: ₹4,000
  • Margin Utilised: ₹7,000
  • Collateral Benefit: ₹3,000

Withdrawable Balance = ₹100,000 - (₹10,000 + ₹5,000 + ₹2,000 + ₹1,000 + ₹500 + ₹8,000 + ₹200 + ₹300 + ₹4,000 + ₹7,000) + ₹3,000

Withdrawable Balance = ₹100,000 - ₹38,000 + ₹3,000

Withdrawable Balance=₹65,000


    • Related Articles

    • What is the withdrawable balance?

      The Withdrawable Balance is the final amount available in your account that you can withdraw. This balance is calculated after deducting various blocked funds from your Ledger Balance. Here's a detailed breakdown to help you understand how this ...

    • What is the withdrawable balance?

      The amount that can be transferred from the 5paisa account to the primary bank account is known as the withdrawable balance. It may differ from the net available funds shown in the funds balance as the funds from equity and F&O trades are not settled ...

    • Why is my withdrawable balance is in negative?

      The withdrawal balance is determined by taking your Ledger Balance and adjusting it for several types of blocked funds. Possible Reasons for a Negative Withdrawable Balance: Trading on Margin: Explanation: If you have traded using margin, your ledger ...

    • What is Pledging?

      Pledging is using an asset as collateral to secure a loan. It is most familiar with using securities such as stocks, bonds, or mutual funds to obtain a bank or financial institution loan. Here’s how pledging works: · You give ownership of the stocks ...

    • How are the interest rates calculated in Margin Plus (funding at 5paisa)?

      Below are a few examples to illustrate how interest will be calculated Cash Segment Example 1: Suppose you have Stocks worth Rs.2Cr. In your Demat account, an available ledger balance of Rs.15Lac. Here your Networth will be Rs.2.15Cr. Stocks in Demat ...