Understanding Your F&O breakdown in account Statement: A Complete Guide

Introduction

The F&O (Futures and Options) entry breakdown in your account statement is your detailed transaction statement that shows all your derivative trades, settlements, and fund movements. Unlike equity trading, F&O trading involves daily Futures mark-to-market (M2M) and Options premium settlements and different position types. This comprehensive guide will help you understand every aspect of your F&O Ledger.

What is F&O entry detail in account statement?

The breakdown provides a granular, day-wise bifurcation of your F&O transactions. It shows:

• Individual contract level positions (BUY, SELL, CARRYFORWARD)
  
• Daily settlement amounts based on M2M
  
• Options premium paid/received
  
• Expiry settlements
  
• Trading charges and taxes
  
• Net settlement amount (money added/deducted from your account)
  

Key Point: The F&O account statement follows T+1 settlement, meaning trades executed on Day T are reflected in your account statement on Day T+1.

Understanding the Briefcase Icon (Net Carryforward Indicator)

On your ledger page, you'll see a briefcase icon (?) with a number next to each script name. This shows your net carryforward positions at the end of the day.

Reading the Briefcase Number

Positive Number (? +300):

• You have 300 BUY positions carried forward
  
• You're net long on this contract
  
• These positions will undergo M2M settlement
  

Negative Number (? -200):

• You have 200 SELL positions carried forward
  
• You're net short on this contract
  
• For Futures, these positions will undergo M2M settlement
  

Example:

NIFTY FUT 28 DEC ? +500

This means you're carrying forward 500 BUY contracts of NIFTY FUT to the next trading day.

BANKNIFTY FUT 28 DEC ? -300

This means you're carrying forward 300 SELL contracts of BANKNIFTY FUT to the next trading day.

Why This Matters

The briefcase indicator helps you quickly understand:

1. Your open positions at a glance
   
2. Whether you're long or short on each contract
   
3. Which positions will have M2M settlements
   

Understanding Futures Trading Tags

1. BUY (Long Position)

When you buy futures contracts, you're taking a long position - betting that the price will go up.

Example:

HDFCBANK FUT 30 DEC
BUY - 300 shares
Buy Price: ₹1040.00
Closing Price: ₹1050.00
M2M per share: ₹10.00
Daily Settlement: ₹3000.00 (300 × ₹10)
This ₹3,000 is credited to your account as you made a profit on this position for the day.

2. SELL (Short Position)

When you sell futures contracts, you're taking a short position - betting that the price will go down.

Example:

HDFCBANK FUT 30 DEC
SELL - 100 shares
Selling Price: ₹1050.00
Closing Price: ₹1040.00
M2M per share: ₹10.00
Daily Settlement: ₹1000.00 (100 × ₹10)
Since the price went down from your selling price, you profit ₹1,000, which is credited to your account.

3. CARRYFORWARD

Positions that you didn't square off on the same day are carried forward to the next trading day. These positions continue to undergo daily M2M settlements. The quantity indicates the direction of your position:

Positive Quantity (+) = BUY Positions Carried Forward

Example:

HDFCBANK FUT 30 DEC
CARRYFORWARD - 300 shares (positive)
Opening Price: ₹1050.00 (Previous day's closing)
Closing Price: ₹1060.00
M2M per share: ₹10.00
Daily Settlement: ₹3000.00 (300 × ₹10)

Negative Quantity (-) = SELL Positions Carried Forward

Example:

HDFCBANK FUT 30 DEC
CARRYFORWARD - (-200) shares (negative)
Opening Price: ₹1050.00 (Previous day's closing)
Closing Price: ₹1040.00
M2M per share: ₹10.00
Daily Settlement: ₹2000.00 (200 × ₹10)
The opening price for carryforward positions is always the previous day's closing price. Daily M2M continues until you square off.

4. SQUARE OFF

This indicates you're closing an existing position. 4.1.SELL (SQUARE OFF): Closing a BUY position by selling 4.2.BUY (SQUARE OFF): Closing a SELL position by buying back

Example:

HDFCBANK FUT 30 DEC
SELL (SQUARE OFF) - 300 shares
Opening Price: ₹1060.00
Selling Price: ₹1070.00
M2M per share: ₹10.00
Daily Settlement: ₹3000.00 (300 × ₹10)
When you square off, your realized profit/loss is calculated from the original entry price to the exit price. In this complete trade cycle, if you bought at ₹1040 and sold at ₹1070, your total realized gain is ₹30 per share.

Mark-to-Market (M2M) Explained

M2M is the cornerstone of futures trading. Every day, your open positions are marked to the closing market price, and the profit/loss is settled.

Daily M2M Calculation

For LONG (BUY) positions:

M2M per share = Closing Price - Opening Price Daily Settlement = M2M per share × Number of shares For SHORT (SELL) positions:

M2M per share = Opening Price - Closing Price Daily Settlement = M2M per share × Number of shares

M2M Over Multiple Days

Let's trace a position over 3 days:

Day 1: You Buy 500 shares at ₹1000

• Buy: ₹1000
  
• Closing: ₹1010
  
• M2M: +₹10 per share
  
• Settlement: +₹5,000 (credited)
  

Day 2: Position Carried Forward

• Opening: ₹1010 (Day 1 closing becomes Day 2 opening)
  
• Closing: ₹995
  
• M2M: -₹15 per share
  
• Settlement: -₹7,500 (debited)
  

Day 3: You Square Off at ₹1020

• Opening: ₹995
  
• Closing: ₹1020
  
• M2M: +₹25 per share
  
• Settlement: +₹12,500 (credited)
  

Total Realized P&L: ₹10,000 (₹1020 - ₹1000 = ₹20 per share × 500 shares) Sum of Daily Settlements: ₹5,000 - ₹7,500 + ₹12,500 = ₹10,000 ✓

The daily settlements always add up to your total realized P&L!

Understanding Options Trading Tags

1. BUY (Buying Options)

When you buy an option (call or put), you pay a premium and get the right (but not obligation) to exercise.

Example:

SENSEX 85480 CALL 24 DEC
BUY - 220 shares
Avg Buying Price: ₹58.50
Net Premium: ₹12,870.00 (220 × ₹58.50)
This ₹12,870 is debited from your account. There's NO daily M2M for options - you either square off or let it expire.

2. SELL (Writing Options)

When you sell an option, you receive premium but take on the obligation.

Example:

SENSEX 85480 CALL 24 DEC
SELL - 220 shares
Avg Selling Price: ₹61.27
Net Premium: ₹13,479.40 (220 × ₹61.27)
This ₹13,479.40 is credited to your account immediately.

3. EXPIRY (Options Expiration)

On the expiry date, in-the-money options are settled based on their intrinsic value.

Call Option Expiry Settlement:
Settlement per share = Max(0, Closing Price - Strike Price)

Put Option Expiry Settlement:
Settlement per share = Max(0, Strike Price - Closing Price) For Buy Options, this amount will be positive, i.e. you will receive the amount in your account.
For Sell Options this, amount will be negative, i.e. the amount gets deducted from your account.

Example - Call Option Expiry:

SENSEX 85480 CALL 24 DEC
Strike Price: ₹85,400
Closing Price: ₹85,408.70
Settlement per share: ₹8.70

For BUY position (220 shares):

Net Expiry Settlement: +₹1,914 (220 × ₹8.70) - You RECEIVE this

For SELL position (220 shares):

Net Expiry Settlement: -₹1,914 (220 × ₹8.70) - You PAY this

Total Options Settlement Amount combines your premium and expiry settlement: • BUY: -₹12,870 (premium paid) + ₹1,914 (expiry settlement) = -₹10,956 • SELL: +₹13,479 (premium received) - ₹1,914 (expiry settlement) = +₹11,565

Reading Your Trade Summary

Your daily ledger entry shows a consolidated Trade Summary: Trade Summary for 12/09/2025

Futures Settlement -₹1,000.00 Options Premium +₹1,500.00 Total charges ₹9.52

Net Settlement Amount +₹491.48

Breaking Down Each Component

1. Futures Settlement This is the net M2M settlement for ALL your futures positions for the day. It includes:

• Daily settlements for carryforward positions
  
• Settlements for squared-off positions
  
• Both profitable and loss-making positions combined
  

2. Options Premium This is the net premium flow:
   • Premium received from options sold
   • Minus premium paid for options bought
   • Expiry settlements (if any options expired that day)
   

3. Total Charges Includes all trading costs:
   • Brokerage fees
   • STT (Securities Transaction Tax) - only on sell side of options
   • Exchange transaction charges
   • GST on brokerage and charges
   • SEBI turnover charges
   • Stamp duty
   

4. Net Settlement Amount This is the final amount added to or deducted from your ledger balance. Remember: This is NOT your profit/loss - it's just the daily fund movement based on M2M. Check the "Realized Gain/Loss Report" for actual P&L.

Common Scenarios Explained

Scenario 1: Intraday Futures Trade

You buy 300 NIFTY FUT at ₹19,500 and sell at ₹19,550 on the same day
Trade Details: BUY - 300 shares @ ₹19,500 SELL (SQUARE OFF) - 300 shares @ ₹19,550

M2M per share: ₹50 Daily Settlement: +₹15,000 Less: Charges: ₹150 Net Settlement: +₹14,850 You squared off before market close, so no carryforward. The entire profit is realized and settled.

Scenario 2: Options Bought and Held Till Expiry

You bought 100 shares of BANKNIFTY 44000 CALL @ ₹150

Purchase Day:

BUY - 100 shares Premium Paid: ₹15,000 Net Settlement: -₹15,000

Expiry Day (Spot closes at 44,250):

EXPIRY - 100 shares Strike Price: ₹44,000 Closing Price: ₹44,250 Settlement per share: ₹250 Net Expiry Settlement: +₹25,000

Total P&L: -₹15,000 + ₹25,000 = +₹10,000

Scenario 3: Carryforward Position Over Multiple Days

Day 1: Buy 500 RELIANCE FUT @ ₹2,450

BUY - 500 shares Opening: ₹2,450 Closing: ₹2,460 M2M: +₹10 Settlement: +₹5,000

Day 2: Position Carried Forward

CARRYFORWARD - 500 shares Opening: ₹2,460 Closing: ₹2,440 M2M: -₹20 Settlement: -₹10,000

Day 3: Square Off @ ₹2,470

SELL (SQUARE OFF) - 500 shares Opening: ₹2,440 Closing: ₹2,470 M2M: +₹30 Settlement: +₹15,000 Total Realized P&L: ₹2,470 - ₹2,450 = ₹20 × 500 = ₹10,000 Cumulative Settlements: +₹5,000 - ₹10,000 + ₹15,000 = ₹10,000 ✓

Important Points to Remember

1. Settlement Amount ≠ Profit/Loss
Daily settlement amounts reflect M2M movements or Options Premium, not your actual P&L. Check "Realized Gain/Loss Report" for true performance.

2. T+1 Settlement Cycle
Trades done today appear in your account statement tomorrow. Plan your fund requirements accordingly.

3. Margin Requirements
SPAN and exposure margin is posted via a different entry in ledger

4. Weekend Positions
If you hold positions over the weekend, Monday's opening price = Friday's closing price. No settlement happens on weekends.

5. Expiry Day Volatility
Options settlement on expiry is based on the closing price of the underlying (not the option price). Plan accordingly.

6. Tax Implications
F&O trading profits are treated as business income and taxed accordingly. Maintain proper records of your ledger for tax filing.

How to Calculate Your Overall Position

Step-by-Step Calculation

Example Portfolio:

1. Futures Positions:
   

   • NIFTY FUT (Carryforward): Daily Settlement = +₹5,000
     
   • BANKNIFTY FUT (Squared off): Daily Settlement = -₹2,000
     

2. Options Positions:
   

   • Bought CALL: Premium = -₹10,000
     
   • Sold PUT: Premium = +₹15,000
     
   • CALL Expired: Settlement = +₹3,000
     
   • PUT Expired: Settlement = -₹1,000
     

3. Charges:
   

   • Total charges = ₹500

Calculation:

Futures Settlement: +₹5,000 - ₹2,000 = +₹3,000
Options Settlement: -₹10,000 + ₹15,000 + ₹3,000 - ₹1,000 = +₹7,000

Less: Charges = -₹500

Net Settlement Amount: +₹9,500

Tips for Reading Your Ledger Effectively

1. Check Daily: Review your ledger daily to understand fund movements
   
2. Reconcile M2M: Match daily settlements with your position P&L
   
3. Track Charges: Monitor trading costs
   
4. Plan Funds: Maintain adequate balance for margin requirements
   
5. Compare Reports: Cross-check Ledger with Portfolio and P&L reports
   
6. Save Records: Download monthly ledgers for tax and audit purposes
   

Conclusion

The F&O Ledger break down is more than just a transaction record - it's your financial diary of derivative trading. Understanding each component helps you:

• Track daily fund movements accurately
  
• Plan your trading strategy better
  
• Manage risk effectively
  
• Maintain proper tax records
  
• Make informed trading decisions
  

Master your ledger, and you're one step closer to mastering F&O trading!

Need Help? If you have questions about specific entries in your ledger, contact support or refer to the FAQ section for detailed explanations.