My understanding of Futures profit and loss settlement is that losses are deducted immediately from the account while profits are settled on T+1. But I'm confused about whether it applies to every individual trade or the total profit/loss on that day.
For example, let's say I have an initial margin of Rs. 5 lakh. I lose Rs. 30000 in intraday futures trade. Now, my available margin is Rs. 4.7 lakh. Next, if I make a profit of Rs. 50000 in another intraday futures trade, what will be my available margin for further trading on the same day?
Will it still be Rs. 4.7 lakh, with the Rs.50000 waiting to be credited on T+1? (the rule applies to every individual trade) Or will it be Rs. 5 lakh with Rs. 20000 waiting to be credited on T+1? (the rule applies to the total profit/loss of that day)
Your understanding is mostly correct — in futures trading, losses are typically debited from your margin immediately, while profits are generally credited on a T+1 basis (next trading day).
However, the application of this rule depends on the broker’s risk management policies and the exchange’s settlement norms.
Losses are adjusted immediately from your available margin.
Profits made during the day are not immediately available for fresh trades — they are usually credited to your account on a T+1 basis (after settlement).
This rule applies to the net profit or loss of your account during the day, not on a trade-by-trade basis.
However, the application of this rule depends on the broker’s risk management policies and the exchange’s settlement norms.
Losses are adjusted immediately from your available margin.
Profits made during the day are not immediately available for fresh trades — they are usually credited to your account on a T+1 basis (after settlement).
This rule applies to the net profit or loss of your account during the day, not on a trade-by-trade basis.
Thanks for the response.