As a part of the End of day (EOD) processes, each open position is revalued at the closing price to calculate profit or loss. If there are profits, it will increase your limits on T+1 day. If not utilized, the same shall be credited to your linked Savings bank account on T+1 day evening. If there is a loss, the same shall be deducted from the margin blocked and the balance margin will be released to increase the limits. In the absence of the required funds, the loss amount will be reduced from the initial margin collected. This process of reduction from initial margin will take place until the NLV% falls below the threshold %. In such a scenario, the position can be squared off by AxisDirect unless you have brought in additional funds in your trading account before initiation of such square off.