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