Why do I have negative balance in trading account?

A negative balance in your trading account can happen due to the following reasons:

  1. Insufficient Funds for Trades: If you place a trade without enough funds and the order is executed at a higher price due to market changes, your account may go negative.
  2. Blocked Margin Adjustments: Changes in your blocked margin can lead to a negative balance if not managed properly.
  3. Uncovered DP Charges: Depository Participant (DP) charges are applied when shares are debited from your Demat account. If your account balance is insufficient to cover these charges, it results in a negative balance.