Ledger Narration: A Guide to Understanding Entries

[Kiran]

Hello Everyone

We are writing and sharing a few posts for some of the new traders who have started trading recently and may not be completely familiar with some of the terminologies and what goes behind the scene when it comes to trading, investing or everything about markets.

We recently shared notes on how charts work and now this one is about your trading account ledger. We hope we are able to simplify some of these for you, and also get your feedback on making some of our processes and products simple, efficient, and easy to use. We want to make your experience with Dhan awesome, and all such interactions help us go in that direction.

Welcome to our ledger narration! Our goal here is to help you understand the entries that are posted in your trading ledger. If you’re wondering why this is important, let us explain.

What is a Trading Ledger?

A trading ledger contains details of every transaction - debit or credit from your trading account on Dhan. The most common examples of ledger entries include:

• Funds added to your trading account on Dhan
• Funds withdrawn from your account by you.
• Profit or loss incurred by selling or buying stocks, currencies, & commodities
• Settlement against trades/transactions you do on exchanges
• Other charges for any products or services you use on Dhan

Knowing what each entry in your ledger means can help you identify charges and their implications. The main roadblock that users generally face is of the complexity of some of these narrations, most of which have been industry standards & terms for years now.

Finance and anything to do with it may seem complex and, at times, it is. That said, it’s important to understand the complexity to become a well-rounded trader and investor. This is where a ledger narration can be useful to you.

Ledger Narration

A ledger narration is a short explanation of why a debit or credit has taken place in your trading ledger. Here’s a simple explanation of the most important ledger entries

Why are We Posting This?

At Dhan, we want to ensure that you have all the tools necessary in order to trade & invest better, and in addition same, you also know how trading systems work, and as always keep things transparent so you know what exactly you are paying for if you are.

A ledger, albeit not a tool, is a crucial part of the trading & investing process. That’s why we’ve simplified the entries for you. If you have questions or queries, please write to us in the comments below or at feedback@dhan.co.

Thanks for using Dhan
Kiran

[nity]

What is charges below for ? This is not explained anywhere above.

DPC Interest : 01/10/2022 to 07/10/2022 : *******

[Poornima]

Hi @nity,

This is mentioned above “Delayed Payment Charges/Interest”. We have a detailed separate post on this Important Update: On Margins, Usage of Broker Funds, and Interest Charges.

Feel free to reach out help@dhan.co if you need more details.

P.S: We suggest to remove your UCC code from community for security purpose.

[nity]

@Poornima Thanks for responding.
I am now more curious to know why is DPC is applicable in my case. Can you ask someone in your team to mail me the exact details why DPC was applicable for the period mentioned above ?

[amit]

Hey @nity ,

Recently, I suggested Dhan team here that in case of DPC, trader should be notified on daily bases over email and notification message and not at end of a week after DPC initiation.

[nity]

Absolutely in agreement with you on this @amit

Also, example you mentioned needs to be considered by Dhan team and accordingly implement for Options. This is how Other leading brokers like Zerodha also follows.

[PravinJ]

What amit refers to is a margin call, that happens on Dhan as well. One of large brokers recently mentioned that best to avoid this is charge is maintain 10-15% extra cash. I am not sure if this done for other brokers., will review. Some of the brokers we know charge on a daily basis, and one of the larger ones also charge extra brokerage of 20 or 40 on a leg where DPC is not charge.

We prefer not to benchmark with some of these practices.

[Poornima]

Hi @nity,

We have shared the detailed calculation of Delayed Payment Charges on your registered email id.

[nity]

@Poornima

Thanks for the detailed calculation. I saw this just now, as I got one more DPC charged today. And this time amount is more than double of previous DPC, I need the details of this as well shared over e-mail please.

Now regarding the first instance, Explanation given is as below -
We checked and found that on 7th Oct, you had used the margin from Delivery Sell to trade in F&O and DPC was charged accordingly.

On checking my trades on 7th Oct, I could not find any trade which required Margin as mentioned in the mail. All my trades done that day were from my available ledger balance only and not from the proceeds of delivery sale transactions. I suggest you to get the details verified again and give an update over e-mail + on this message here.

[Divyesh]

Hi, @nity

Yes, we are checking and will connect you on your registered mail id.

[nity]

Received explanation on second DPC.
Now I am curious to know the basis of Margin required used in the DPC calculation…
Kindly help with the details.

[Divyesh]

Hi, @nity

Thank you for your acknowledgment.

For more concerns related to DPC calculation connect with us at help@dhan.co / chat or call us at 022-48906273

[nity]

I need details of how margin was calculated from 7th Oct to 10th Oct on mail.

[GNKKUMAR]

Ledger narration should be able to clearly understand by the customers. Otherwise it amonts to understood as hidden charges .
What is your difficulty in narrating clearly in terms of pledge unpledge interest cdsl margin penalty etc.
The colateral value of cash components and stock pledge after haircut should be seperately shown.
Alert should display if 50 : 50 margin shortfall requirements before accepting the order placement. If not it amounts to deliberate misguiding the customers to collect interest etc.
Dhan should follow transparency like other reputed well established fellow brokers, and cannot take shelter as new entrant, which again reflect the image of the company.
These updates are immediately required on urgent basis.
After all at the end of the day, the customers should understand the debit and credits in the ledger.

[Nishant_Choudhary]

It’s almost impossible to figure out what charges I pay on Dhan for a particular MTF trade. Is it not possible for you to summerize thes charges anywhere on the application or do you not want us to know?

[iamshrimohan]

@Nishant_Choudhary Seems like you haven’t checked the latest Ledger Report on Dhan - It has Cashflow analysis which gives you a complete Bird’s eye view of your money in and out of Dhan. Do check it out and let me know incase you face any difficulties

[Nishant_Choudhary]

There is no way to figure out how much interest I paid on each trade, or on each day in your so called latest Ledger Report

[iamshrimohan]

@Nishant_Choudhary It is not possible to compute the interest charges paid on each trade or day. However, with the ledger analysis report, you can check the total interest paid during the period. Do share you UCC over DM, i’ll get an outward call arranged form the CS team for you to explain you in detail.