Below are a few examples to illustrate how interest will be calculated

Suppose you have Stocks worth Rs.2Cr. In your Demat account, an available ledger balance of Rs.15Lac. Here your Networth will be Rs.2.15Cr.

Now you purchase stocks worth 30Lac., then the funding provided by 5paisa will be Rs. 15Lac. Now the interest rate applicable to you will be 0.045% per day, and hence interest charged will be Rs.30 per day

Suppose you have Pledged Stocks worth Rs.6Lac. In your Demat account, an available ledger balance of Rs.0. Here your Networth will be Rs.6Lac.

Now you purchase stocks worth 10,000, then the funding provided by 5paisa will be Rs. 60,000. Now the interest rate applicable to you will be 0.05% per day, and hence interest charged will be Rs.30 per day

Below are a few examples to illustrate how interest will be calculated

Suppose you have Stocks worth Rs.5.85Lac. In your demat account, an available ledger balance of Rs.15,000. Here your Networth will be Rs.6Lac.

Now you enter into a futures contract with Rs.1,00,000 as the required margin, you will need to maintain at least 50% of the order value in cash, thus the cash margin required for the order will be Rs.50,000.

The funding provided by 5paisa will be Rs.35,000 against this required cash margin. Now the interest rate applicable to you will be 0.03% per day, and hence interest charged will be Rs.10.5 per day

Suppose you have Pledged Stocks worth Rs.4Lac. In your demat account, an available ledger balance of Rs.0. Here your networth will be Rs.4Lac

Now you enter into a futures contract with Rs.1,00,000 as the required margin, you will need to maintain at least 50% of the order value in cash, thus the cash margin required for the order will be Rs.50,000.

The funding provided by 5paisa will be Rs.50,000 against the required cash margin. Now the interest rate applicable to you will be 0.04% per day, and hence interest charged will be Rs.20 per day

# Related Articles

## FAQs on Margin Plus (Funding at 5paisa)

Q 1) What is Margin Plus(funding 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 ...## What are the changes in interest rates in Margin plus (funding at 5paisa)?

We’re thrilled to announce that you can now start trading with leverage at a reduced interest rate. MarginPlus is the most preferred feature that helps every trader/investor to meet their cash margin requirements in all segments, and avail of ...## What is Margin Plus(funding 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 ...## How will the margin pledge effect my positions and limits, if I have avail Margin Trade Funding (MTF) facility?

All clients availing of the Margin Trading Facility (MTF) facility, in order to continue with this facility, need to initiate a “Future Pledge” request of the shares from our website or mobile app up to T+1 day by 12 PM## From when are the new MarginPlus (funding at 5paisa) interest rate changes applicable?

The Update in interest rates for MarginPlus will be effective from 1st October 2022. If you have any open MTF positions as on 1st October 2022, the interest charged on all your MTF positions from that day onwards will be according to the new rates ...