Does overnight holding attracts interest in futures?

[lalitnmudgal]

Hi! I have a few question of which I have not been able to find answer on any of the blogs/docs/posts by Zerodha.

Scenario -
I buy a future worth 8 lakh rupees with 1 lakh rupees in my account (by taking 8x leverage). I sell this future after 30 days.

Question -

1. Is it possible to hold overnight position like this in futures?
2. If it is possible, then do I have to pay interest for 7 lakh rupees for 30 days?
3. If I have to pay interest, then what will be the interest rate?

[ajaybgowda]

Hi @lalitnmudgal,

Due to peak margin rules by SEBI, there is no leverage offered for equity F&O, currency, and commodities segments.

If you are speaking of margins charged at the time of entering position

@lalitnmudgal

Is it possible to hold overnight position like this in futures?

Yes, you can hold positions overnight by placing NRML order.

@lalitnmudgal

If it is possible, then do I have to pay interest for 7 lakh rupees for 30 days?

No interest will not be charged if the positions are held overnight.