---
title: "Why is the balance in the funds statement displayed as negative?"
description: "the Arrow account balance is displayed as negative for the following reasons:"
category: console
subcategory: funds-statement
slug: why-is-the-balance-in-the-funds-statement-displayed-as-negative
canonical: https://support.arrow.trade/console/funds-statement/why-is-the-balance-in-the-funds-statement-displayed-as-negative/
---

# Why is the balance in the funds statement displayed as negative?

> the Arrow account balance is displayed as negative for the following reasons:

## Short answer

the Arrow account balance is displayed as negative for the following reasons:

Daily marked-to-market (M2M) losses: When you hold futures positions, iRage settles your losses for such positions on a daily basis. The system deducts the settlement amount from your available free cash balance, not from SPAN or Exposure margins, which may lead to a negative balance in your account if you do not maintain sufficient funds.

Charges: Your account balance will be negative if you do not have sufficient funds in your account and iRage deducts Annual Maintenance charges, DP charges and other charges from your account.

Utilisation of collateral margin: Your funds statement does not include the collateral margin you obtain by pledging securities. Therefore, if you utilise collateral margin to take positions, your funds statement may display a negative balance.

## Example scenario

You have an opening balance of ₹1,000 and collateral margin of ₹1,000 from stocks.

You take a position that requires ₹2,000, and you utilise collateral margin for this position.

iRage will block ₹2,000 from your funds statement at the end of the day, and your Arrow account balance will become -₹1,000.

iRage funds the shortfall of ₹1,000 through your collateral, and this will not result in any penalty.

## Impact of negative balance

Your withdrawable balance on Console will also be negative. iRage will charge you a brokerage of ₹40 per executed order instead of ₹20 while you place an F&O order if your Arrow account has a negative balance.

iRage will levy delayed payment charges of 0.05% per day (18% per annum) on your debit balance.

## Related

- Browse more in [funds statement](/console/funds-statement/)
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- Support: [support@arrow.trade](mailto:support@arrow.trade)

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Source: https://support.arrow.trade/console/funds-statement/why-is-the-balance-in-the-funds-statement-displayed-as-negative/
Publisher: Arrow / iRage Broking Services LLP