Posted in Finance, Accounting and Economics Terms, Total Reads: 102
Definition: Point Balance
Point Balance is a monthly statement issued generally at the end of month, having the point balances of the investors. The point balances are issued to indicate the status of profit or loss earned through Future and Forward options. This statement gives an idea how the portfolio of the investor is performing.
Point Balance is a kind of balance sheet for the investors which serves the same purpose of indicating the financial health of the portfolio of the investors. The point balance gives an idea to the customer that “Is the portfolio is performing at par with the market? “.
In short, the point balance is the report card of all the transaction that the investors have invested and what is the overall final status of the portfolio i.e. the portfolio is in profit or loss.