Funds on WebNotes

How to read funds deducted when exiting a profitable short option

Sun, 21 Jun 2026 00:00:00 +0000

When you close a profitable short option by buying it back, the Kite funds page often shows money going out, which looks wrong on a winning trade. Nothing has gone wrong. The buyback debits the premium you pay to close, while the premium you received when you sold was credited earlier in the position’s life. The trade is profitable because the buyback premium is smaller than the sell premium, but the funds view shows you the debit at exit and the credit at entry separately, so the exit looks like a deduction. This guide explains how to read the two cash flows, the margin release that happens at the same moment, and where Console shows the true realised profit.

Credit from T1 holdings unavailable on the same day on Kite

Wed, 20 May 2026 00:00:00 +0000

When you sell a T1 holding (shares bought today, not yet settled) on Kite , the cash proceeds become available based on the SEBI T+1 settlement cycle, not immediately. This article explains why and how to work with it.

What T1 means

After SEBI’s T+1 settlement transition completed in January 2023, Indian equity trades settle one trading day after execution:

Trade day (T): You buy shares.
T+1: Shares are credited to your demat; cash debited.

Until T+1 settlement completes, the shares are flagged as T1 on the Kite Holdings tab (or in the position queue, depending on Kite build). They can be sold via the BTST flow, but the sale proceeds are subject to the same settlement cycle.

Dashboard and funds calculation flow on Kite

Wed, 20 May 2026 00:00:00 +0000

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).

How funds are debited for SGB orders

Wed, 20 May 2026 00:00:00 +0000

Funds debit for SGB orders differs between primary tranche and secondary market:

Primary tranche

Bid placement: Funds blocked in Zerodha trading balance (issue price x quantity x grams, minus online rebate).
Allotment day: Blocked funds debited to RBI; SGB units credited to demat.
Refund (if any): Excess returned to trading balance.

Secondary market

Buy order: Like equity; funds blocked at limit price x quantity.
Execution: Debited on trade confirmation.
Settlement: T+1 demat credit.

Online rebate (primary only)

Online subscribers (via brokers like Zerodha) get Rs 50/g discount on the issue price. So if issue price is Rs 6,000/g, online debit is Rs 5,950/g.

How to fix missing decimal values on the Kite funds page

Wed, 20 May 2026 00:00:00 +0000

When the Kite funds page shows rupee values rounded to whole rupees (e.g., “Rs 1,000” instead of “Rs 1,000.45”), the underlying value is correct; only the display is rounded. This is almost always a client-side rendering issue.

Conflict-of-interest disclosure. This guide is published by the WebNotes Editorial Team for informational purposes and is written independently. WebNotes operates a Zerodha account-opening referral programme, disclosed on the pages that carry the referral link; this guide does not carry it and earns no referral commission from the procedure described here.

Margin available, used and cash on the Kite funds page

Wed, 20 May 2026 00:00:00 +0000

The Kite funds page is the canonical surface for monitoring trading account liquidity. It surfaces three core fields: margin available, margin used, and cash. Active F&O traders and intraday traders watch these throughout the session.

The three fields

Field	What it shows
Margin available	The total margin you can deploy on new trades
Margin used	The margin already locked against open positions
Cash	The cash-equivalent component of your margin

Margin available

Margin available is the sum of:

Option premium credit on Kite funds

Wed, 20 May 2026 00:00:00 +0000

When you sell an option (sell-to-open a call or a put on Kite ), the premium received from the buyer is credited to your trading account. This credit appears in the funds page and contributes to margin available.

Mechanics

For a Nifty 50 option example:

You sell 1 lot of NIFTY 23MAY 22000 CE (lot size 50).
Premium received per share: Rs 100.
Premium received per lot: Rs 100 x 50 = Rs 5,000.

The Rs 5,000 credits to your account on the trade day. Simultaneously, the SPAN + exposure margin for the short option position is locked.

Pay-in funds explained on Kite

Wed, 20 May 2026 00:00:00 +0000

Pay-in on Kite (and Console ) refers to adding funds to your Zerodha trading account from your registered bank. Once funds are paid in, they become part of your cash available on the Kite funds page , usable for buys, F&O margin, or to meet the cash component requirement on F&O positions.

Pay-in methods

Method	Speed	Charges
UPI	Instant (a few seconds)	Free up to most banks’ UPI limits
IMPS	Instant during banking hours	Free (depends on your bank)
NEFT	Up to 30 minutes (settles in 30-min RBI batch)	Free
RTGS	Instant for amounts >= Rs 2 lakh	Free (depends on bank)
Net banking transfer	Generally instant	Free
UPI mandate (for SIPs / IPOs)	Authorisation step; settles per the mandate schedule	Free
Cheque deposit	T+1 or T+2 (legacy; rare now)	Free

UPI is the dominant pay-in method for Indian retail flows. Zerodha supports UPI pay-in through several PSPs.

Positions P&L vs funds gains differences on Kite

Wed, 20 May 2026 00:00:00 +0000

A user closes a position on the Kite Positions tab and sees a realised P&L of Rs X. Looking at the funds page , the cash balance has not increased by exactly Rs X. The difference is normal and explained by several intervening adjustments.

The two figures are not the same thing

Figure	What it shows
Positions P&L (realised)	The pre-charge gain or loss from the trade
Funds gain (cash credit)	The net amount that lands in your account after charges and settlement

A profitable trade with positive Positions P&L will produce a positive funds gain, but the absolute amounts differ.

Previous day profits not on Kite why

Wed, 20 May 2026 00:00:00 +0000

If your previous trading day’s F&O profits aren’t visible on the Kite Funds page at the start of the next day, the cause is usually settlement timing or post-EOD batch processing.

Normal cycle

Time	Status
T 15:30	F&O session ends
T evening (~18:00-19:00)	Daily MTM settlement processed
T late evening	Cash credit to trading account
T+1 09:00	Profits available for new trades

If the cycle proceeds normally, profits appear by T+1 morning.

Reserve blocked basis for G-Sec

Wed, 20 May 2026 00:00:00 +0000

When you bid for a G-Sec / T-Bill / SDL on Zerodha, funds are blocked based on:

Blocked = Face value x Indicative dirty price / 100 + Buffer

A small buffer (typically 0.5% to 1%) is added because the actual cut-off price may exceed the indicative.

Example

Bidding for Rs 1,00,000 face value of 7% G-Sec:

Indicative clean price: Rs 100.
Accrued interest (4 months from last coupon): Rs 2.33.
Indicative dirty price: Rs 102.33.
Blocked: Rs 1,02,330 + ~Rs 500 buffer = ~Rs 1,02,800.

After allotment

Actual cut-off may be slightly different.
Difference (savings) is unblocked.
Excess (if any) is debited.
Net: Settlement debit = Allotted face x Cut-off dirty price / 100.

External references

References

Zerodha, G-Sec bid mechanics, support.zerodha.com.
RBI, Non-competitive bidding, rbi.org.in.

How to schedule an instant withdrawal from Zerodha

Tue, 12 May 2026 00:00:00 +0000

An instant withdrawal on Zerodha is a standard payout request placed before the 9:00 AM IST cutoff on a business day. Requests placed within this window are processed by Zerodha’s banking partner via IMPS and typically credited to your registered bank account on the same business day. Requests placed after 9:00 AM are processed on the next business day. This guide explains the full procedure on Kite web and the Kite mobile app , the eligibility conditions, limits, and common failure modes.

How to withdraw funds from Zerodha

Tue, 12 May 2026 00:00:00 +0000

Withdrawing funds from Zerodha sends the selected amount from the trading account to the primary bank account registered with your Zerodha account, via IMPS during business hours. The process is initiated entirely within Kite and requires no interaction with the bank. There is no withdrawal fee. This guide covers the complete flow on Kite web and the Kite mobile app , the withdrawal cutoff, limits, and troubleshooting.

Funds on WebNotes

How to read funds deducted when exiting a profitable short option

Credit from T1 holdings unavailable on the same day on Kite

What T1 means

Dashboard and funds calculation flow on Kite

Inputs

Step-by-step flow

Step 1: total resources

How funds are debited for SGB orders

Primary tranche

Secondary market

Online rebate (primary only)

How to fix missing decimal values on the Kite funds page

Margin available, used and cash on the Kite funds page

The three fields

Margin available

Option premium credit on Kite funds

Mechanics

Pay-in funds explained on Kite

Pay-in methods

Positions P&L vs funds gains differences on Kite

The two figures are not the same thing

Previous day profits not on Kite why

Normal cycle

Reserve blocked basis for G-Sec

Example

After allotment

See also

External references

References

How to schedule an instant withdrawal from Zerodha

How to withdraw funds from Zerodha