Your 'Used Funds' section would be used in either of the 2 scenarios below.
1. From your total 'Available to Trade' balance, when an amount of funds is used for trading, and this amount will be shown in 'used funds'. This will be denoted as a positive amount. The possible scenarios when this may happen is -
- You buy Stock in the Equity Delivery segment.
- You buy or short sell a Stock in the Equity Intraday segment.
- You buy or short sell a Derivatives (Futures & Options) contract in Intraday or Delivery.
- You carry forward an open position to the next trading day for either a Futures contract or an Options contract (on the short side only).
2. Whenever you successfully sell a Delivery position, an amount will be receivable by you, and this amount will be shown in 'Used funds'. This will be denoted as a negative amount. The possible scenarios when this may happen is -
- You successfully sell a Stock in the Equity Delivery segment (from your Demat account.
- You sell an open position (on the buy-side) in the Options segment.