Restriction of Trading on Profits

Profits made in the derivative segment on a given day cannot be used to take fresh positions on the same day. Here’s a concise summary of what happens if you make a profit, for example, Rs. 10,000, on a trading day (referred to as T day):

Key Points:

  1. Regulatory Restriction:
    Regulators have restricted the use of intraday profits for same-day trading.

  2. Profit Settlement:
    The profit amount will be released by the Exchange only on T+1 day, meaning it will not be available for new positions on the same trading day.

  3. Trading Balance Reflection:
    Your trading balance or margin will not reflect these profits until they are settled by the Exchange on the next trading day for F&O.

  4. Back Office Ledger:
    While the profits won't be available for trading immediately, you can view your intraday profits in the closing balance of your back office ledger.

  5. Settlement Holidays:
    If the T+1 day is a settlement holiday, the profits will be available on the next trade settlement day.


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