Why is my withdrawable balance negative?
Withdrawable balance is the amount of money you can transfer from the trading account to your bank account. Read more on withdrawable balance here.
To know why the withdrawable balance is negative, you first have to know about the rolling settlement.
In India, exchanges follow a rolling settlement cycle. If you sell stocks, you will be able to utilize the proceeds to buy other shares. However, funds from the sale proceeds get settled to your trading account after two trading days. Similarly, trades in the F&O segment get settled after one trading day. Learn more about rolling settlement here. You will be able to withdraw only the funds that have been settled to your account.
Before the withdrawal amount has been settled to your account, it is negative. This means that the withdrawable balance which is negative, is the amount which is still in the process of being settled (according to the rolling settlement). Once it is settled, it is positive under the withdrawable balance, which is when you will be able to place a withdrawal request for this.
1. Negative withdrawable balance does not mean that your trading account is in debit. It only means that the funds are in the process of being settled.
2. Your withdrawal request will fail if you place the request when the withdrawable balance is negative because you can only place the request when the funds are settled according to the rolling settlement.