Why does my available funds change even though the required margin is blocked?
When you place trades in derivatives (Options or Futures), use intraday leverage, or access Margin Trading Facility (MTF), the required margin is blocked up front. However, your available funds may still fluctuate during the trading day, especially due to changes in your unrealised profit or loss (P&L).
How margin and fund availability work
- Required margin: The amount blocked by the exchange to initiate and hold a position
- Available funds: Remaining usable balance in your account after margin and MTM (Mark-to-Market) adjustments
Example
Let’s say:
- Your account balance = ₹1,00,000
- You sell 1 lot of Nifty Options = ₹80,000 margin blocked
- Remaining available funds = ₹20,000
If your unrealised loss increases to ₹5,000:
- Your new available funds = ₹20,000 - ₹5,000 = ₹15,000
This dynamic change reflects the real-time risk in your positions and helps brokers and exchanges ensure sufficient buffer to cover potential losses.
Monitor your “Available to Trade” and “Unrealised P&L” in real time to avoid margin shortfalls or auto square-offs.
What if...
| Scenario | Outcome |
|---|
| I see available funds going down | Likely due to growing unrealised losses |
| My positions are in profit | Unrealised gains may increase available funds, but usually not released until booked |
| Available funds fall below required levels | Broker may send a margin call or square off positions |
Last updated: 25 Jun 2025
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