Deciphering Virtual Block in Trading: Why Are Funds Blocked?

What is virtual block?

A virtual block refers to a temporary hold or reservation of funds in your trading account at FYERS. These funds are set aside for pending obligations and cannot be used for new trades until the underlying transaction is settled.

Why does a virtual block occur?

Virtual blocks can appear in your account for multiple reasons. Here are the most common:

1. Mutual Fund Transactions

When you place a buy or sell order for mutual funds using FYERS Direct, the transaction amount is virtually blocked. This ensures the required funds are reserved until the order is processed and settlement is complete.

2. Interest on Debit Balance

If your trading account has a negative balance (i.e., you owe funds), an interest charge may apply. The interest amount is virtually blocked for deduction from your account. For more details, read: Why am I charged a penalty of more than 15% p.a. on a debit balance at FYERS?

What If...

ScenarioExplanation
I see a block after a mutual fund orderIt means funds are reserved until the MF transaction is settled.
I didn't place any order but see a blockThis might be due to interest on debit balances or other back-end charges.
I want the block removed urgentlyContact FYERS Support to clarify the block and resolve it if possible.
Virtual blocks are automated and serve as a safeguard to ensure settlement and dues are honored. They are removed automatically once the transaction is settled.

Last updated: 28 Jun 2025

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