What is the interest on using margin from pledged share?

Zerodha Zerodha platforms
1

Suppose I got 10L from pledged share as margin.

I used that 10L and bought more equity shares and sold them after 20 days.

What is the daily/monthly interest rate for this borrowed money?

2

Hey @VarunAgw

Kindly be aware that the pledged margin is exclusively available for equity intraday trading, and writing futures & options in both equity and currency.

In case there is a shortfall in the cash margin requirement for overnight positions, and it is funded by non-cash collateral, a delayed payment charge of 0.035% per day or 12.775% p.a is applicable on the shortfall in the cash margin requirement.

For further details on pledging, you may refer to this link.

4

Hi @KarthikAcharya

So if I take delivery of equity share and don’t have enough cash:

  1. I have to pay 0.035% interest rate?

  2. Or it will be squared off automatically at EOD?

5

Bump