Hi i have a simple question. Icicidirect i can pledge my demay shares as margin and create a fund limit first. Then i can do a margin buy in BSE where the bought open position can be kept open for 180 calendar days. Daily i need to pay a minimal interest in cash. I can square off within 180 days when in profit
Now is there a similar facility in Zerodha. ?
This is pure equity not f&o
Daily you need to pay minimal interest in CASH ? you mean without any receipt or accounts ? it also means it is not the bank but some body else is financing your purchase that too on daily interest basis till you square off by selling or 180 days whichever is earlier.
in my view in scheme of such finance, if you work out total interest paid surely it would turn out more than 4-5 % per month or more ! frankly speaking very dangerous game .
No sir this margin buy 180 days BSE is in Icicidirect itself. Fully genuine facility. Interest rate is 0.05 percent daily on the bank funded margin. Anytime we can bring more cash and reduce margin funded by bank.
On day of square off they recover the int rate.
This is funded by Icicidirect securities facility. Suppose we don’t have the cash to square off in loss they will sell pledged share.
I am sure full fledged brokers offer this. Wanted to check if Zerodha offers this type
Thanks for this information . i did not know about such schemes . Kindly read from the documents provided to you or ask some representative of bank , HOW MUCH THE RATE OF INTEREST WILL TURN OUT BE ON MONTHLY BASIS ? it can not be 0.05% multiplied by 30 =1.5 % per month but much higher.
No @sabkaview i did a sample buy. It was exactly same interest rate. We can convert to delivery any time when we bring cash. They send daily collateral statement also. Only thing is to keep sufficient cash in case of loss square off and to pay interest. They take only A grade shares as collateral after hair cut percentage
Also initially ur position will have system calculated stop loss trigger. If we add some more share as collateral that trigger price will be further reduced.
Request u search FAQ of Icicidirect by margin buy 180 using shares as margin SAM .
Let us know if any discount broker offers like this.