What is meant by ledger balance in SBI trading account?
Thank you very much for considering me fit to seek advice.
Your question is too short and not fleshed with other contextual material. Still I will try to answer your question to the best extent and context I have understood.
Usually the various steps involved in executing a trade are as follows:
- First we transfer funds into the trading account, say Rs.15,000/-, from the linked bank account - for example, in my case the trading account is with Kotak Securities and the linked bank is Kotak Mahindra Bank.
- Now the ledger balance in the trading account is Rs.15,000/- Cr (meaning amount is due to you).
- Now you place an order to buy say 20 shares of Great Eastern Shipping at Rs.433/-. The total value of the order translates into Rs.8660/-.
- Now the ledger balance should show Rs.6,340/- Cr (due to you).
- Let us assume that next you buy 50 shares of Rural Electrification Corporation (REC) at Rs.180/- a piece for a total value of Rs.9000/-.
- Now the ledger balance should show Rs.2,660/- Dr (Due to the Stock Broker Firm).
Please look at the actual trading account ledger balance of Kotak Mahindra Bank for April 2017:
In conclusion, the trading account ledger balance is the final amount due to or from an individual after various transactions during a certain period.
I hope I was able to answer your question adequately.
With Best Regards