Why does P&L in Kite positions not match with gains on the funds page?

The reason for the disparity between the P&L in Kite positions and the gains displayed on the funds page is due to the different methodologies used to calculate them. On Kite, the P&L is determined based on the original entry price of your positions. However, on the funds page, the gains are calculated based on the last Marked to Market (M2M) settlement price for open futures and short options positions.

This distinction arises because of the standardized exchange process known as Marked to Market (M2M), which is employed for accounting purposes and ledger adjustments in futures trading. At the end of each day, all open futures positions are marked to the closing settlement price for that day. The profits or losses are then credited or debited accordingly in the client's funds statement. This M2M process helps mitigate counterparty risk and ensures prompt collection of losses from those who incurred them while crediting profits to those who made gains. To learn more about M2M, see What is Mark to Market (MTM)?

Short option positions, on the other hand, do not go through the same M2M process as futures. Instead, the margin required to hold short options increases as the options move in the money, resulting in losses for short options. This mechanism ensures that customers facing losses are required to contribute additional funds, reducing the risk of default.

Therefore, the overall P&L will ultimately be the same on both platforms. However, the daily P&L or credit/debit reflected on the funds page may differ due to the distinct calculation methods employed in Kite positions and the funds page.