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 balance might reflect a negative value. This occurs
because margin trading involves borrowing funds to trade, which means
your account can show a negative balance until the borrowed amount is
repaid.
- Impact: When you place a withdrawal
request, the negative balance is taken into account, reducing the amount
you can withdraw.
- Settlement Period:
- Explanation: In India, the stock exchanges
follow a T+1 rolling settlement cycle. This means that funds from selling
equities or Futures & Options (F&O) trades take one trading day
(T+1) to settle into your account.
- Impact: During this settlement period,
your ledger account might show a negative balance because the proceeds
from your trades have not yet been credited to your 5paisa account.
The calculation is as follows:
Withdrawable Balance=Ledger Balance−Blocked Value
Blocked Value Components
- Today's Payin
- Description: Funds were added to your
account today.
- Impact: These funds cannot be withdrawn
on the same day they are added.
- Today's Payout
- Description: Funds were withdrawn from your
account today.
- Impact: Reduces the amount available
for withdrawal.
- Adhoc Margin
- Description: Additional margin requirements
are set on an ad hoc basis.
- Impact: Temporarily blocks a portion of
your funds as margin.
- Booked Losses
- Description: Realized losses from trades
closed today.
- Impact: Decreases the available balance
as these losses are deducted.
- Unbooked Losses
- Description: Losses from open positions that
have not been realised yet.
- Impact: Blocks funds equivalent to
these potential losses.
- Pending Orders
- Description: Margin blocked for orders that
have been placed but not executed.
- Impact: These funds are reserved until
the orders are executed or cancelled.
- Turnover Charges
- Description: Charges are based on the
trading volume across different segments.
- Impact: Deducted from your balance as
they are accrued.
- Accrued Charges
- Description: Charges that will be levied at
the time of billing.
- Impact: These future charges are
accounted for, and the current balance is reduced.
- Unsettled Credits
- Description:
- Equity Credits: Proceeds from selling
securities in your holdings today.
- Derivative Credits: Credits from derivative trades
made today.
- Impact: These credits are not available
for withdrawal until they are settled, which may take an extra day if
there are settlement holidays.
- Margin Utilized
- Description: The margin used for orders
placed or the peak margin requirement for the day, whichever is higher.
- Impact: These funds are blocked to
cover potential losses from trades.
- Collateral Benefit
- Description: Value derived from collateral
provided (e.g., Mutual Funds, Liquid Assets, Equities) after applying a
haircut (discount).
- Impact: Increases your withdrawable
balance by the lower value of:
- The margin required for open or
carried forward positions.
- The collateral value after the
haircut.
Example Calculation
Assume your Ledger Balance is ₹10,000; the following
applies:
- Today's Payin:
₹1,000
- Today's Payout: ₹500
- Adhoc Margin: ₹2,000
- Booked Losses: ₹1,000
- Unbooked Losses: ₹1,500
- Pending Orders: ₹2,000
- Turnover Charges: ₹50
- Accrued Charges: ₹100
- Unsettled Credits: ₹500
- Margin Utilized: ₹3,000
- Collateral Benefit: ₹1,000
Blocked Value Calculation:
Blocked Value=₹1,000 (Payin) +₹500(Payout)+₹2,000(Adhoc
Margin)+₹1,000 (Booked Losses)+ ₹1,500 (Unbooked Losses)+₹2,000(Pending
Orders)+₹50(Turnover Charges)+₹100(Accrued Charges)+₹500(Unsettled
Credits)+₹3,000(Margin Utilized)−₹1,000(Collateral Benefit)
Blocked Value=₹9,650
Withdrawable Balance Calculation:
Withdrawable Balance=₹10,000 (Ledger Balance)−₹9,650 (Blocked
Value)
Withdrawable Balance=₹350
Key Points to Remember
- Payin and
Payout: Today's deposits cannot be withdrawn immediately, while today's
withdrawals reduce the available balance.
- Margins and Losses: Both realised and un-realised
losses, as well as margin requirements, significantly impact the
withdrawable balance.
- Pending Orders and Charges: Funds reserved for pending
orders and various charges further reduce the balance.
- Unsettled Credits: Credits from today's
transactions need to settle before they become withdrawable.
- Collateral Benefits: Proper utilisation of collateral
can increase the withdrawable balance.
Understanding these components helps you better manage your
funds and anticipate changes to your withdrawable balance.