Speculation or profits refer to the day-to-day (Intraday) profits/losses on your positions. It keeps fluctuating based on your trading position and the prevailing market prices.
- Why will you not be able to use speculation profits on T+1 day?
When you sell/exit Intraday trades, the Exchange takes T+2 days to credit the profits to a broker and thereby to your account. Hence, any profits used by you on T+1 could lead to a margin shortfall which is liable to penalties. To protect you from such penalties, we have decided to discontinue the use of such profits on T+1 day in your best interest.
- Summarising, what this means for you:
From 27th August 2021 onwards speculation profits can be used to place trades only from T+2 days and not on T+1 days. This is only applicable for Intraday Equity traders and not F&O traders.