Q1) What is MarginPlus at 5paisa?
MarginPlus is an exclusive facility designed by 5paisa for its users, which gives you the ability to trade in all segments using your entire net available margin! i.e. with MarginPlus you can trade entirely using collateral margin (pledged securities).
To put it in simple terms, if you do not have enough cash to fulfil the different cash margin requirements across segments, or you want to trade using leverage, then MarginPlus is the product for you!
The funding provided, and the cash margin shortfall covered by 5paisa will be free of any charge for intraday trades. The same for All overnight/delivery trades will attract nominal interest rates starting at just 0.03% per day.
The below table details the interest rates applicable to users under MarginPlus:
Particulars | MarginPlus |
Intraday Rates (All Segments) | 0.00% |
Overnight Rates for F&O Segment | 0.04% Per Day (Networth Below ₹5 Lakhs*) 0.03% Per Day (Networth Above ₹5 Lakhs*) |
Rates on Delivery Cash Segment(MTF) |
0.06% Per Day (Networth upto ₹5 Lakhs*)
0.05% Per Day (Networth between ₹5 Lakhs to ₹1 Cr*)
0.045% Per Day (Networth above ₹1 Cr*)
|
*Networth: G holding + ALB (Holdings + Available Ledger Balance)
*Net Worth includes your holdings in cash & stocks on 5Paisa.
Q2) What are the benefits of being a MarginPlus customer?
Below are the key benefits that Margin Plus users can avail of:
- Zero cash margin requirement for Intraday trades across all segments, no interest charged.
- No need to maintain a 50% cash margin in F&O (Lowest interest rates starting @10.95% p.a.)
- Avail up to 5X cash margin funding for cash delivery orders @ 0.06% per day.
- Real-time activation of MarginPlus while placing orders across segments.
- Increase your ROI on short-term trades with the help of funding.
Q3) What challenges do I face if I'm a Non-MarginPlus customer?
If you’re a Non-Margin plus customer you will have to maintain 100% of the required margin for order in 50% cash and 50% collateral. If you fail to maintain the required margin, your order will be rejected.
MTF benefits (Funding) are not applicable to the Non-Margin Plus users on delivery trades in the cash segment.
Q4) How is Interest on Margin calculated?
Particulars
| MarginPlus
| Non-MarginPlus
|
Intraday Rates (All Segments)
| 0.00%
| NA
|
Overnight Rates for F&O Segment
| 0.04% Per Day (Networth Below ₹5 Lakhs*)
0.03% Per Day (Networth Above ₹5 Lakhs*)
| NA
|
Rates on Delivery Cash Segment(MTF)
| 0.06% Per Day
| NA
|
*Net Worth includes your holdings in cash & stocks on 5Paisa.
Q5) How can I utilize the MarginPlus funding?
If you are a MarginPlus customer, 5paisa will help you meet your cash margin requirements for placing an order. This will allow you to trade hassle-free even if all of your margins are in the form of collateral.
Q6) How is interest calculated in MarginPlus for full funding on Intraday orders?
No interest will be charged for funding on intraday trades. However, to place an order you will still need to have a “net available margin” of more than the margin required for the order
Q7) How is interest calculated in MarginPlus for full funding on Delivery (cash segment) orders?
If you are placing a delivery order of 100 Qty of Cipla shares at Rs. 900/- where the upfront margin required is Rs. 18,000. As per the rule, you will need to maintain 9,000/- as a Cash component to place this order.
However, if you do not have any cash in your trading account, but you have a Collateral margin of more than Rs. 18,000, then 5paisa will allow you to place the order using funds from its own books.
Further, when the entire amount has to be paid in cash, on settlement i.e. T+2, 5paisa will fund that amount if you set up a pledge for funding.
So, your margin funding utilization here is 100*9,000=90,000 as the full amount will need to be paid in cash by 5paisa at settlement. Hence, your interest would be 90,000*0.06% = Rs. 54 per day T+2 day onwards.
Q8) How is interest calculated in MarginPlus for partial funding on Delivery (cash segment) orders?
If you are placing a delivery order of 100 Qty of Cipla shares at Rs. 900/- and your account has cash and cash equivalent of Rs 5000, then the funding by 5paisa for your order would be 100000-5000 = 95000.
In this case, your margin funding utilization is Rs 95000, and thus the interest charged would be at 95000*0.06% = Rs. 57 per day from T+2 day.
Please note that we consider only EOD funding utilization of the day for calculating interest charges.
Q9) How is interest calculated in MarginPlus for full funding on Overnight(FnO/Currency) orders with 5paisa?
If you're placing an overnight order for 1 lot (50 Qty) of Nifty futures at Rs. 16,900/-, then the upfront margin required will be Rs. 1,03,000/- (i.e. Span + Exposure margin as specified by exchange).
As per the rule, you will need to maintain at least Rs. 51,500/- in Cash/Cash equivalent to placing this order, while the remaining Rs. 51,500/- can be in the form of collateral.
However, if you do not have any cash in your trading account but you have a collateral margin of Rs. 1,03,000/- or more, then 5paisa will allow you to place the order and help you fulfill your Rs. 51,500/- cash requirement from its own books.
In this case, your margin funding utilization is Rs. 51,500/-. In case you fall in the 0.03% slab, then the interest charged will be 51,500*0.03% = Rs 15.45 per day, respectively, T+1 onwards.
Q10) How is interest calculated in MarginPlus for partial funding on Overnight(FnO/Currency) orders with 5paisa?
Considering the above scenario, instead of zero cash, if you had cash and cash equivalent of Rs 20,000, then the funding by 5paisa for your order would be 51,500-20,000 = 31,500. Here, you would be charged interest which will be calculated as 31,500*0.03% = Rs. 9.45 per day if your net worth is above 5 lakh.
Similarly, in case your net worth is below 5 lakh, your interest would be charged as 31,500 *0.04% = Rs 12.6 per day.
Please note that we consider only EOD funding utilization of the day for calculating interest.
Q11) What are the key differences between MarginPlus and Non-MarginPlus customers?
Refer to the table below to understand the key differences between MarginPlus and MarginPlus customers:
S. No
| Particulars
| MarginPlus Customer
| Non-MarginPlus Customer
|
1
| 50% cash Requirement for Intraday-Cash/F&O/Currency
Delivery - F&O/Currency
| No
| Yes
|
2
| 50% Cash and cash equivalent requirement for
Delivery - Cash segment
| No
| Yes
|
3
| MTF (Leverage) on Delivery - Cash segment
| Yes
| No
|
4
| 0% interest on all Intraday trades
| Yes
| No
|
Q12) How long does it take to activate the MarginPlus?
Activation of margin plus will be real-time, i.e. your account will get activated instantly.
Q13) What if I don’t want to pay the interest charges but also want to avail of the MarginPlus offer?
There will be three options that a trader can opt for if they do not want to fall into the interest category-
- You can hold on to the shares until T+2 days (After T+2, the interest charges will be levied on the funded amount irrespective of the trading and segments category)
You can add the required funds to your trading account.
- Square off the position.
Q14) From when can I avail of the MarginPlus offer at 5paisa?
You can avail of the MarginPlus offer as soon as you activate it from your 5paisa trading application/web.
Q15) How can I activate MarginPlus?
Follow these easy steps to get access to MarginPlus and its benefits-
- Login to your account
- Go to the live market section
- Select any stock the quick order page will appear
- On the bottom right corner above the ‘Buy’ And ‘Sell’ button, you’ll see the ‘Activate’ switch written in green, click on it
- Here you activated your MarginPlus
Q16) How can I deactivate MarginPlus?
Follow these easy steps to deactivate the MarginPlus-
- Login to your account
- Go to the live market section
- Select any stock, the advance order page will appear
- At the bottom of the screen, you’ll see the 'Learn More' option
- Click on 'Learn More,' the deactivation page will appear
- Click on the Deactivate MarginPlus option
- Then click on ‘Yes Cancel’ if you want to deactivate or else click on ‘Not Now’ the changes will be restored