Deciphering Virtual Block in Trading: Why Are Funds Blocked?

What is virtual block?

A Virtual Block represents a temporary hold or reservation of funds in your trading account. This block can occur due to various reasons, but primarily for the following:

  1. Mutual Funds Transactions: When you buy or sell mutual funds, the funds related to the transaction are reserved until the settlement is complete. This ensures that there's sufficient balance in the account when the transaction gets finalized.
  2. Interest Charges: If your trading account has a debit (negative) balance, there might be an interest charged on it. This interest amount is virtually blocked to be deducted. For a comprehensive understanding of interest on debit balances, please refer to this article.
If you notice a virtual block on your account and need further clarification, don't hesitate to contact us. We're here to assist you!

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