How is realised and unrealised profit calculated on Kite?
Realised profit on Kite is calculated when a trade is squared-off, taking into account the closed F&O and intraday equity positions. When a CNC trade is squared-off during the day, it does not affect the realised profit. However, the P&L from the intraday CNC trade that has been squared off is included in the available margin on Kite.
Unrealised profit on Kite is determined by marked-to-market losses associated with open F&O and intraday equity positions. These losses are considered as unrealised profit. The marked-to-market losses reduce the available balance, but the benefit of marked-to-market profits cannot be used in the available margin. In the case of having open positions, the unrealised profit is calculated based on the net result of the positions.
- In the scenario where position A incurs a loss of ₹100 and position B generates a profit of ₹50, the resulting unrealised profit will be -₹50. This negative value will be subtracted from the available margin.
- However, if position A experiences a loss of ₹100 while position B generates a profit of ₹150, the unrealised profit will amount to ₹0. This is due to the fact that the benefit of the profit cannot be utilized to increase the available margin.
- Similarly, the realised and unrealised profit will be negative in case of losses.