Zerodha-demat-account

Understanding When Will Zerodha Profit be Credited to Your Account: If one sells their shares or closes their positions today, when will they be able to withdraw their funds?

After two trading days, funds from stock holdings are sold and intraday earnings are added to the withdrawal balance. After one trading day, F&O earnings and monies from closed F&O positions will be added to the withdrawal balance. This is due to the fact that Indian exchanges operate on a rolling settlement cycle. For further information, see this article.

Example:

 If you sell your stock on Monday, you can withdraw the proceeds on Wednesday evening. (However, 80 percent of the selling earnings can be used to make fresh deals right away.)

Because the settlement cycle for derivatives is Trade day +1, closing your position on Monday will allow you to withdraw the proceeds (margins, MTM) on Tuesday evening.

Intraday equities earnings will be available for withdrawal on Trade day+2, while intraday F&O profits will be accessible on Trade day+1.

If you’re interested to open your DEMAT Account with Zerodha, here is the Direct Account opening link

What is the procedure for withdrawing funds from my trading account?

Kite Mobile, Kite Web, and Console all allow you to request a withdrawal. The following is an explanation of the withdrawal procedure.

Mobile Kite

  • In the bottom right corner
  • Click on your User ID 
  • Select Funds from the drop-down menu. 
  •  Click on Withdraw
  •  Enter the amount you’d like to withdraw 
  • Click on Proceed. 
  • Click on Confirm.

Web of Kites

  • Select Funds from the drop-down menu
  • Click on Withdraw 
  • Enter the amount you’d like to withdraw. 
  • Click on Proceed. 
  • Click on Confirm.

Console

  • Select Funds from the drop-down menu.
  • Click on Withdraw
  • Enter the amount you’d like to withdraw 
  • Click on Proceed.
  • Click on Confirm.

Note:

Only the amount in your withdrawable balance is available for withdrawal.

On the same day, funds added during the day cannot be withdrawn.

You can cancel your withdrawal request by going to the fund’s page and clicking the cancel request button.

Why isn’t the fund withdrawal in Zerodha instant?

Funds added during the day are immediately available for trading. You can only withdraw these monies after one day since we need to execute a balance reconciliation at the end of the day.

Because Indian exchanges operate on a rolling settlement cycle, you will not be able to withdraw funds immediately if you close your holdings today.

The formula for calculating the withdrawable balance is as follows:

Balance that can be withdrawn = (Available cash balance – Proceeds from stocks sold yesterday & today – F&O profits today – Funds added today)

Withdrawable balance = the Funds Statement’s closing balance. – Unresolved credits – Today’s funds + The collateral that was used

Unsettled credits= Today’s and yesterday’s credits in the equity segment + Today’s credits in the derivative segment 

Collateral utilised = Total collateral used towards margin requirement from the cash and non-cash equivalents

Important Points:

Collateral margin received from pledging stocks or liquid mutual funds to trade F&O will not be considered part of the withdrawable balance.

Funds added during the day are available for trading immediately. However, since we need to perform a balance reconciliation at the end of the day, you can withdraw these funds only after one day.

Securities forming part of the Cash and non-cash components can be tracked through Zerodha.

Possible chances for your withdrawal request to be turned down

Your request for withdrawal has been denied for the following reasons:

1. You may have requested a withdrawal for an amount more than your equity or commodities account’s withdrawable balance.

For your request to be completed properly, you must provide a sum that is less than or equal to the amount visible in the withdrawable balance.

You won’t be able to withdraw money from your Demat account if you sell stocks or generate intraday profits.

After two trading days, the funds from the sale are paid in your trading account (after one trading day in the case of F&O).

Only the amounts that are settled and shown in your withdrawable balance will be available for withdrawal.

2. During the day, funds added to the trading account cannot be withdrawn on the same day. Only after balance reconciliation, which takes only one day, may you withdraw the money.

That concludes this article, we hope you found “When Will Zerodha Profit be Credited?” to be informative. Please express your thoughts in the comments section below. Happy investing!