How can I increase my available limit?

You can increase your available limit by adding more funds, closing or reducing open positions, or pledging eligible holdings for extra margin. Selling shares also helps because the proceeds are generally usable on the same day.

What is “Total Margin?

Total margin is the combined value of all funds and collateral available for trading. It includes your cash balance, pledged holdings, today’s transfers, realised gains, credit from sales, and other adjustments. It reflects your total trading power before deducting the margin already used.

Can I use pledged margin to trade in the equity delivery segment?

No, pledged margin cannot be used for equity delivery trades. Margin from pledged holdings is only allowed for intraday or derivative positions. For delivery-based buying, you must have sufficient cash on hand, as collateral margin is not accepted for long-term share purchases.

Why is my available balance less than expected after closing intraday positions?

Your available balance may be lower because part of the used margin is still blocked for charges, realised losses, or unsettled trades. In some cases, system updates or pending adjustments can temporarily hold funds. The balance increases once the exchange processes everything and releases the margin.

Know all about ‘Available Limit’ before you trade

Having knowledge about the use of funds available for trading is of utmost importance while trading. The total funds that are available to trade on a particular day, and the margin against eligible holdings (if the user has pledged the shares) is known as the available limit. On some apps, under the available limit section, you can also see the used margin. This used margin means your funds are utilised for intraday trades, carry-forward positions or open orders that have not yet executed.

Key Takeaways

Your available limit shows the amount of money you have that can be used for trading. It is done on the basis of your funds, pledged shares, and used margin.

Used Margin is the amount blocked by open trades or losses. This means you cannot use it to enter any new positions.

When you sell shares, only part of the money is instantly usable. The remaining is available after the settlement process.

You can increase your trading limit by adding more funds, closing open positions, or pledging eligible holdings for extra margin.

You can see two sections under the ‘Funds’ section:

Funds - This section contains all the details about the funds like the margin available to trade and the used margin

Pledge Holdings - Under this section, you can see the additional margin you can get against your eligible holdings as well as all the details of your pledged and unpledged transactions. You should also know that the margin raised against collateral can’t be used to enter into equity delivery transactions.

Also Read, What is Margin and How to Calculate it?

Take a look at the funds segment on most apps:

Total Margin

Total Margin is the total of funds and holdings available in your trading account. To calculate this, we take the following details into consideration:

Fields	Meaning	Effect (+/-)
Previous Day Balance	Closing the combined ledger balance of the previous day across all segments	+
Funds Transferred Today	Funds you have added from your bank account today	+
Funds Withdrawn Today	Funds you have withdrawn from your trading account today	-
Realized Gain	The profit that you have earned by selling your investment at a higher price than the purchase price	+
Credit For Sale	Sale Proceeds Utilization: Funds that you are allowed to utilise from the sale proceeds you have received (typically 80% on T-day). VaR Margin on Previous Day Sell: The release of the Value at Risk (VaR) margin that was blocked on a previous day's sale, provided an early pay-in for the trade was not completed. MTM Profit of Cash Segment: Any Mark-to-Market (MTM) profit currently realized in your cash segment positions.	+
Notional Deposit	A total of penalty(ies) that is yet to be charged and DP charges	-
Holdings	All the holdings you have pledged as collateral	When you pledge more holdings as a collateral When you sell your pledged holdings
Miscellaneous Deposit	Any of the charges or incomes not covered above will be included in this	When income is in surplus When charges are in surplus

Used Margin

The margin that is locked up due to open trades or any other reason and can’t be used to trade or open new positions is known as the Used Margin. While calculating the used margin for your trading account, we consider the following things:

Trade/Positions - Funds that are utilised for executing your equity and F&O intraday or positional trades

Realised Loss - Loss that you have suffered when you square off your open position

Unrealised Loss - It is the loss on open positions

How to Check the Available limit on your trading account?

Head to the ‘Funds’ section after logging in

Under the ‘Funds’ tab, you can see three tabs, namely,

Total Margin – Total funds available in your account

Used Margin - Funds that are locked and can’t be used for trading

View Transactions - All the transactions, such as fund transactions, DP transactions, and more, that you performed in a specific period

Under the ‘Pledge Holdings’ tab, you can see the margin available against your holdings

How Is Available Margin to Trade Calculated?

The margin available to trade mentioned in the Funds section is calculated using the simple formula mentioned below. This available margin can be used to enter into new trades or open new positions.

Available Margin = Funds (Cash Margin) + Holdings (Margin Against Pledge) - Used Margin

How to Increase Your Available Limit?

There are 3 ways through which you can increase the available limit in your trading account:

By successfully adding more funds to your trading account

By squaring off your position (the funds from the used margin will be transferred to the available margin, thereby increasing the limit) or selling the holdings

By pledging the collateral using a margin pledge

Conclusion

The amount of money available to trade is known as Available Limits. It includes funds balance, pledged holdings, and margin against pledged securities. Now that you know what it is, keep an eye on your available limit before placing an order to make sure that your transaction is not rejected. Also, from this section on our app, you can go to the ‘View Transactions’ tab to check all the transactions you have made during a particular period. Check the available limits on our app or web platform here.