Dashboard and funds calculation flow on Kite
The Kite funds page summarises in a few headline numbers what is actually a multi-step calculation involving cash balances, pledged collateral, open positions’ margin requirements, and intraday P&L. This article walks through the flow Kite follows from start to finish.
Inputs
The calculation starts with:
- Cash balance in the Zerodha trading account.
- Collateral value from pledged equity (haircut-adjusted).
- Collateral value from pledged liquid funds (haircut-adjusted).
- Open positions with their current SPAN + Exposure margin requirements.
- Option premium credits received (and not yet paid back via close).
- Intraday P&L (realised and unrealised).
- MTM impact from holdings (Day’s P&L on CNC delivery).
Step-by-step flow
Step 1: total resources
Total resources = Cash + Pledged equity collateral (haircut-adjusted) + Pledged liquid fund collateral (haircut-adjusted).
This is the gross capital pool available to the trader.
Step 2: deduct margin used
Margin used = Sum of SPAN + Exposure for all open F&O positions + Intraday equity margin for open MIS positions + Settlement-stage margin for unsettled positions.
Margin available = Total resources - Margin used.
Step 3: add premium credits
For short option positions, the premium received from the sell counts toward cash margin. The premium credit was added to cash in Step 1; the F&O margin requirement in Step 2 is gross of the premium. Net effect: no double counting.
Step 4: apply 50:50 cash check
SEBI requires 50% of F&O margin in cash or cash-equivalent. Cash equivalent = Cash + Liquid fund collateral + Premium credits.
If Cash equivalent < 50% of margin used (on F&O positions), there’s a shortfall. The shortfall incurs interest charges per SEBI’s rate.
Step 5: factor in intraday P&L
Open intraday MIS positions’ unrealised P&L adjusts the available margin:
- Profit: increases margin available.
- Loss: decreases margin available.
Realised intraday P&L (from same-day closes) is locked in to cash at end of day.
Step 6: factor in holdings Day’s P&L
CNC holdings’ Day’s P&L does not directly affect margin available during the day (the holdings are not pledged for margin in this state). However, if any holding is pledged, the pledged value changes with LTP, which subtly affects collateral value.
Step 7: display
The funds page shows:
- Cash: From Step 1 (cash balance only).
- Margin available: From Step 2 (after subtracting margin used, plus Step 5 unrealised adjustments).
- Margin used: From Step 2.
Why the displayed Margin available can change throughout the day
| Trigger | Effect |
|---|---|
| Open a new F&O position | Margin used up; available down |
| Close an existing F&O position | Margin used down; available up |
| MTM gain on open positions | Available up |
| MTM loss on open positions | Available down |
| SPAN file update (volatility spike) | Margin used up; available down |
| Pay-in funds | Cash up; available up |
| Pay-out funds | Cash down; available down |
| Pledge new shares | Collateral up; available up |
| Un-pledge shares | Collateral down; available down |
| Option premium credit (sell to open) | Premium credit added to cash + margin used up |
| Option premium debit (buy to close) | Cash down + margin used down |
End-of-day reset
At end of day:
- All intraday MIS positions are closed (manually or auto-squared).
- Realised intraday P&L locks into cash.
- NRML F&O positions remain open with their margin used.
- Collateral values get refreshed against the day’s close.
- T1 holdings move to settled state on T+1.
The funds page on T+1 morning reflects the post-settlement state.
Console for end-of-day reconciliation
Console shows the end-of-day cash balance and any pending payouts. For tax / accounting reconciliation, Console is the source-of-truth; Kite is the in-session real-time view.
See also
- Margin available / used / cash on Kite funds
- SPAN and exposure margin on Kite
- Margin required on order window
- Margin on exit calculation
- Delivery margin field on Kite
- Pay-in funds explained
- Option premium credit on Kite funds
- Collateral (equity) on Kite
- Collateral (liquid funds) on Kite
- Positions P&L vs funds gains differences
- Intraday profits from yesterday on Kite
- How to fix missing decimal values on Kite funds
- Minimum stock SIP amount on Kite
- Margin shortfall and auto-square-off
- Margin pledge (Zerodha)
- Cash collateral shortfall interest
- Day’s P&L on holdings calculation
- Intraday P&L on Kite web
- Realised vs unrealised profit calculation
- Kite Holdings tab explained
- Kite Positions tab explained
- P symbol on holdings page
- Sold stocks shown as negative positions
- F&O LTP change on positions before market opens
- P&L change after 3:30 PM
- Credit from T1 holdings unavailable same day
- Futures and options
- Kite (Zerodha)
- Kite web
- Kite mobile app
- Zerodha
- Zerodha Console
External references
References
- SEBI, F&O margin and cash collateral framework, sebi.gov.in.
- NSE Clearing, SPAN computation, nseclearing.com.
- Zerodha Support, Funds calculation, support.zerodha.com.