Why does the Kite fund balance not include profits from today?
The available margin on Kite funds only includes credits that are available for taking trades. To learn more, see What does margin available and margin used mean? Due to the upfront margin requirements applicable from September 2020 onward, intraday profits are not made available for trading until settled by the exchange (i.e. on T+1). To learn more about upfront margin requirements, see What changes due to the new upfront margin requirements?
Example scenario
- Shares worth ₹2,00,000 are bought on Monday.
- These shares are sold on the same day for ₹ 2,25,000 with a profit of ₹ 25,000 (ignoring all the charges)
- ₹2,00,000 will be available immediately for other transactions. However, the profit of ₹ 25,000 will be available only on Tuesday for withdrawal or to be used for other trades based on the T+1 settlement cycle.
If there's a settlement holiday, it will take an additional day for the settlement process. To learn more, see What is a settlement holiday and its impact?, Market holiday calendar 2023.
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