Cash Margin Interest calculation case study

General
1

If stock pledge and margin use to Sell Nifty Option without cash of 50% as MIS which requires Intraday margine around 20000 bcz MIS.
My Question is …

  1. Is interest will applicable as it is intraday
  2. If Yes,So interest rate will be on (20000×50%=10000 bcz MIS order) or (50000×50%=25000 bcz T+1 settlement)
    Also Period of interest will be (1 days bcz intraday) or (2 days bcz T+1 settlement) and in case of fridays 3 days.
2

Interest is applicable only if you carry forward the option sell position without 50% of the margin available in cash and using the excess from the collateral margin. It is not applicable for intraday trades.

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3

If buy today and sell tomorrow then interest period is 1 or 2 days as T+1 settlement

4

The shortfall of cash is for one day so interest is charged on the shortfall for one day.

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5

If i want to pledge 5cr of Stock and want to take margin against it without cash for intraday only specially on Expiry day.
What are think I have to know it before selling such huge margin.

And for MIS order only 20000 for nifty require so we have to pledge according or we have to pledge full 50000 margin.

Some time sebi asked for clients record to check. Debit balance and if sebi found debit balance it will impose penalty what Zerodha do in such a case.

6

You can use entire collateral margin for intraday trading without any cash in your account, and you will not be charges an interest for this.

You can pledge accordingly if you want to trade only 1 lot for sure. If you have Rs.20,000 worth of collateral margin, then you can trade 1 lot of Nifty for intraday. You don’t require your collateral margin to be 5 lacs for this.

If your account is in a cash debit at the end of the day, then the exchange will charge a penalty for this. Ensure there is no cash debit to avoid paying this interest charge.

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