How are the interest rates calculated in Margin Plus (funding at 5paisa)?

How are the interest rates calculated in Margin Plus (funding at 5paisa)?

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

Cash Segment

Example 1:
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.

Stocks in Demat
Available Ledger Balance
Networth
2,00,00,000
15,00,000
2,15,00,000

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

Stocks purchased
5paisa Funding
Interest%
Interest charged
Rs.30,00,000
Rs.15,00,000
0.045% per day
Rs.675 per day

Example 2:
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.

Stocks in Demat (pledged)
Available Ledger Balance
Networth
6,00,000
0
6,00,000

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

Stocks Purchased
5paisa Funding
Interest%
Interest charged
Rs.10,000
Rs.10,000
0.05% per day
Rs.5 per day

Derivative segment

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

Example 1:
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.


Stocks in Demat
Available Ledger Balance
Networth
5,85,000
15,000
6,00,000

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

Contracts Purchased
Cash Margin Requirement
5paisa Funding
Interest%
Interest charged
Rs.100,000
Rs.50,000
Rs.35,000
0.03% per day
Rs.10.5 per day

Example 2:
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

Stocks in Demat (pledged)
Available Ledger Balance
Networth
4,00,000
0
4,00,000

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

Contracts Purchased
Cash Margin Requirement
5paisa Funding
Interest%
Interest charged
Rs.50,000
50,000
Rs.50,000
0.04% per day
Rs.20 per day



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