You would see a pie chart like below when logged into your Q. The chart gives you a quick overview of the value of your equity and commodity accounts with us.
The following should help in better understanding how to use this chart.
Equity Cash Balance
This shows the total cash present in your trading account. The cash which can be used to take any new positions.
Margin blocked – Futures and short options
This is the total margin (SPAN + exposure) blocked for all your futures and short options positions.
The total value of all your demat/stock holdings as per the previous closing price.
Long options value
The total value of all your long options premium as per the previous closing price.
Free cash from short option premium
When you short/write options, the premium gets credited to your trading account on the next day. This premium is technically not yours unless it expires at zero. So until expiry day, this option premium should be deducted from your equity cash balance to know your true cash balance.
Let me explain:
Assume your Equity cash balance is Rs 105,000 and you have shorted 100 Nifty calls a few days back and the previous closing price is Rs 50. This Rs 5000 (100 x 50), is the premium present in your account which if squared off at Rs 50 will be debited and given to the option buyer. Hence your true account balance is not Rs 1.05 lakhs, but Rs 1 lakh ( 105,000 – 5,000).
Free cash from short options is the money lying with you, but still doesn’t belong to you. Hence it is depicted by a light green piece on the pie chart sticking out to show that it doesn’t really belong to you.
Equity account value
The big number at the top shows the total value of your account if you were to liquidate/exit all your holdings and open positions at the previous closing price.
Equity account value = Cash balance – Free cash from short options premium + Holdings value + Long options value + Margin blocked for F&O
The chart works very similar with your commodity account as well. Since there is only futures trading, your commodity account value = Cash balance + Margin blocked for futures.
Note that updates on Q are currently not on a real-time basis. Q gets updated at the end of everyday after trade process (around 7 PM). So your pie chart will also get updated only then.
The idea behind the pie chart on Q is to intuitively give a quick overview of your account with us.
Hope this helps,