You may face inconsistencies in the ‘Available funds’ balance on the transaction screen and the ‘Available to trade’ balance on the funds screen during order placement.

In such scenarios, orders will be processed based on the ‘Available funds’ balance on the transaction screen.

The difference arises due to the calculation of premium present. (You can find it under ‘Margin used’ on the funds screen).

Definition

Premium present is the amount paid to buy options or received to short options. It is negative (received) when entering a new short option position or exiting a buy option position and vice versa. Proceeds from negative premium can be availed only for a buy option trade in the same segment and on the same trading day.

The margin available for each case will differ based on the source of premium and net value.

1. Stock/indices option buy: Margin benefit from negative premium from stock/indices option sell can be availed only for stock/indices option buy.

2. Currency option buy: Margin benefit from negative premium from currency option sell can be availed only for currency option buy.

3. Others (Equity, Option sell, Futures etc.): Margin benefit from option sell cannot be availed in this situation.

Funds screen

The value of premium present on the funds screen takes into account both the stock/indices and currency options transactions. The ‘Available to trade’ (single value displayed) is the maximum margin available across all transaction types.

Transaction screen

Available balance is shown based on the transaction type initiated.