---
title: "Why was my account in negative balance after the market order was executed?"
description: "When you place a market order, the system executes it at the best available price after validation. However, differences between validation and…"
category: arrow
subcategory: mtf-and-margins
slug: why-was-my-account-in-negative-balance-after-the-market-order-was-executed
canonical: https://support.arrow.trade/arrow/mtf-and-margins/why-was-my-account-in-negative-balance-after-the-market-order-was-executed/
---

# Why was my account in negative balance after the market order was executed?

> When you place a market order, the system executes it at the best available price after validation. However, differences between validation and…

## Short answer

When you place a market order, the system executes it at the best available price after validation. However, differences between validation and execution prices can occur, potentially leading to a negative account balance.

## How price differences create negative balances

Here's an example of how this happens:

You place a market order for 1,000 quantities of a Bank Nifty CE contract requiring a margin of ₹96,150. The system validates this order based on the previous close price of ₹96.15. However, if the contract opens at a different price, say ₹196.15, the execution leads to a debit of ₹1,96,150 in your account instead of the expected ₹96,150.

## When negative balances occur

Cash market or F&O orders placed at market opening or during market hours are validated based on available bid-ask prices, but execution can take place at uncontrollable prices. Such circumstances can result in a negative fund balance in your account.

## Consequences of negative balances

When your account has a negative balance, iRage may square off positions without prior notice. Additionally, if your account is in negative balance, you'll be charged a brokerage of ₹40 per executed F&O order instead of the standard ₹20.

## Related

- Browse more in [mtf and margins](/arrow/mtf-and-margins/)
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- Support: [support@arrow.trade](mailto:support@arrow.trade)

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Source: https://support.arrow.trade/arrow/mtf-and-margins/why-was-my-account-in-negative-balance-after-the-market-order-was-executed/
Publisher: Arrow / iRage Broking Services LLP