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What is a daily margin statement, and how to understand it?

A daily margin statement is a report that provides clients with information regarding their margins. It includes information on deposited margins, such as fund transfers and pledged collaterals, as well as blocked margins for held or taken positions. The report aims to inform clients of the following:

  1. Margin required by the exchanges for the positions taken or held.
  2. Availability of free margins in the account to take new positions.
  3. Margin shortfall in the account so that the clients can maintain adequate funds to avoid any margin penalty. To learn more, see What are margins and how can margin shortfall occur?

The daily margin statement is sent to the registered email address on the days when the client has traded. Alternatively, it can also be downloaded by visiting console.zerodha.com/reports/downloads.



Understanding the Daily margin statement

Margin Available

The Margin Available section provides details of cash balance, margin received from pledging shares (collateral margin) and value of shares sold from the demat account, which can be considered towards the margin, also referred to as Early Payin(EPI) margin.

Here’s a detailed explanation of the four columns in this section:

  • Funds - Annex A : This column shows the fund balance after reversing the effect of T-day credits and debits of the Equity, F&O and CDS (Currency derivative) segments. Reversing means deducting the unsettled credit obligation and adding back the unsettled debit obligation because it takes T+1 day for Equity, F&O and CDS amounts to get settled. Let’s understand this with an example.

Example Scenario

Mr A has a fund balance of ₹1,00,000 on Tuesday. He bought options worth ₹30,000 and Reliance shares worth ₹20,000 and sold TataMotors worth ₹30,000 on Tuesday. His closing balance on Tuesday is ₹80,000. The calculation of the fund balance is as follows:


Tuesday’s (T-Day) closing balance 80,000
ADD: Unsettled debits Sum of options and shares bought on Tuesday (T Day) 50,000
LESS: Unsettled credits Shares sold on Tuesday ( T Day) 30,000
Unencumbered Balance (Fund balance) Funds available on Tuesday (T Day) 1,00,000

The settlement cycle for all instruments is T+1 Day. Hence the unsettled credits and debits for all the segments are reversed for T day. To learn more, see What does settlement cycle mean?

The detailed breakdown of this calculation is explained in Annex A.

  • Value of Securities - Annex B : This column shows the collateral margins. Collateral margins are the margins received from pledging the stocks after the applicable haircut. Annex B explains the break up of securities pledged. To learn more, see What does Collateral(Equity) in the ‘funds’ mean?
  • Any other approved form of Margins (EPI) - Annex C : Shares sold from the client's demat account are transferred to the exchange’s account on the Trade day. Sale value from such sold securities is considered as the available margin towards the subsequent margin requirement of the client. Early Pay-in(EPI) value is calculated by taking 80% of T Day sell value.

Margin Required

The Margin required section indicates the exchange mandated margins to initiate the trades in respective segments.

Here’s a detailed explanation of the five columns in this section:

  • Upfront Margin required : This column shows the upfront margins. Upfront margin is the minimum amount required to take a trade and is to be collected on an upfront basis on trade day. Upfront margins for each segment are as follows:

EQ = Minimum margin + Additional margin

F&O = Span Margin + Extreme Loss Margin

CDS = Span Margin + Extreme Loss Margin

MCX = Span Margin

To learn more, see What is SPAN and exposure margin? and What is Value at Risk (VAR), Extreme Loss Margin (ELM), and Adhoc margins?

  • Consolidated Crystallised Obligation : This column shows the sum of MTM loss margin or option premium payable in the respective segment. It shows the due or non-upfront margins, which means that they can be collected till T+1 day. In the case of MCX, Consolidated crystalised obligation margin is referred as MTM margin. To learn more, s ee What is Mark to Market (MTM)?
  • Delivery Margin required : This column shows the physical delivery margins charged by the exchange for In The Money (ITM) options held till expiry. Exchange levies physical delivery margins as a percentage of applicable margins (VAR + ELM + Adhoc) of the underlying stock, which is levied from expiry minus four days. To learn more, see What is Zerodha's policy on the physical settlement of equity derivatives on expiry?
  • Total End of the day (EOD) Margin required : This column shows the total amount blocked by the exchange for the position, segment-wise. This is calculated as total upfront margin + consolidated crystallised obligation + delivery margin (in case of F&O)
  • Total Peak Margin required : This column shows the highest peak margin required from the snapshots taken by the exchange. To learn more about peak margins, see zerodha.com/z-connect/zerodha/bulletin-latest-at-zerodha/peak-margin-intraday-leverages-2nd-order-effects-dec-1st-2020.

Margin Collected

The total Margin Available is distributed across the various heads of Margin Required value, prioritising the upfront value.

Here’s a detailed explanation of the seven columns in this section:

  • Upfront margin collected : This column shows the upfront margin collected against the Upfront Margin required from the available margin of the client.
  • Consolidated crystallised obligation collected : This column shows the consolidated crystallised obligation collected against the Consolidated Crystallised Obligation required from the available margin of the client after allocating the funds towards the upfront margin.
  • Delivery margin collected : This column shows the delivery margin collected against the Delivery Margin required from the available margin of the client after allocating the funds towards the upfront margin and consolidated crystallised obligation.
  • Total End of the day (EOD) Margin collected : This column shows the sum of the Upfront margin , Consolidated Crystallised Obligation, and Delivery Margin collected .
  • End of the day (EOD) Excess/ Shortfall : This column shows the difference between the total margin available and the Total EOD margin required . A negative value indicates margin shortfall.
  • Total Peak margin collected : This column shows the peak margin collected against the Peak Margin required from the available balance of the client.
  • Peak Excess/Shortfall : This column shows the difference between the Total Peak Margin available and the Total Peak margin required . A negative value indicates margin shortfall.

Indicative peak snapshot time

This column shows the indicative time of the highest peak snapshot from the snapshots taken by the exchange. This is indicative and not exact, as it is the time when Zerodha receives the peak snapshot files from the exchange and not the exact time of the snapshot.

Did you know? Clients can add the funds on T+1 day to avoid the short margin penalty on any short margin in Consolidated Crystallized Obligation, Delivery Margin and Additional margin (in case of Equity).