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My ledger balance is shown as negative. Why is this?

Your account balance can be negative in the following cases,

  1. Daily marked to market (M2M) losses - When you have futures positions, the losses for the same are settled daily. This is reduced from your free cash balance (This is not reduced from your SPAN and Exposure margins)
  2. The collateral margin received by pledging securities isn’t added to your funds statement. So when you’ve utilized collateral for taking positions, your ledger might show a negative balance.
  3. For example, say the opening balance as per your ledger is Rs. 1000 and you have collateral margin from stocks worth another Rs. 1000. You will be able to take a position that requires a margin of up to Rs. 2000. When you take this position, Rs. 2000 will be debited on the ledger at the end of the day and your ledger balance will change to -1000. However, this shortfall of Rs. 1000 is funded through collateral and will attract no penalty. Read this for more on collateral.
  4. Annual Maintenance charges, DP charges and other charges deducted from your account.
  5. Funds utilised for MF and equity purchases on the same day:
    If you've placed a mutual fund purchase order for the balance you have in your account and simultaneously used it to purchase equities on Kite, both the orders will be processed and your account will go into a negative balance. Such negative balance will attract delayed payment charges. To know more about delayed payment charges, see I see a deduction "Delayed payment charges" on my ledger. Why is this?

The account value can become negative in both the cases mentioned above if you have a zero balance (or lower than the required balance). The withdrawable balance on Console will also be negative.