Many traders and investors who are willing to make delivery trade look for the relevant margin percentages. So, if you have a 5paisa demat account and you are looking for the 5paisa margin for delivery, you have reached your destination!
Generally, stockbrokers do not provide any margin for delivery trades as the trade duration can not be determined. It means that the amount lent would be locked in for an unknown period.
5paisa margin for delivery is provided at varying percentages for different financial securities.
They provide up to 4x margin or according to the stock exchange guidelines.
5paisa permits you to trade in multiple financial segments listed on NSE, BSE, and MCX. The final margin amount is decided based on various factors related to the specific asset you are willing to trade.
A trader or investor always checks the exact amount of margin they can avail before deciding the financial asset they want to trade as it varies for different securities.
If you’re willing to calculate the margin amount, you can use the official margin calculator on the 5paisa website or access the 5paisa margin calculator for delivery on our website.
Having said this, you might also want to check the margin interest rate levied for borrowing the said amount.
5paisa Delivery Margin Interest Rate
Margin facility is the share market parallel for a bank loan. Therefore, you have to pay an interest rate for the amount you lend from the stockbroker.
This interest rate varies from stockbroker to stockbroker. In the case of this broker, the 5paisa delivery margin interest rate is 18% per annum. It is calculated monthly.
Let’s understand this with a simple example
Suppose you receive a margin amount of ₹10,000. The interest rate is 18%, which makes the interest amount be:
₹10,000 X 18% = ₹1,800
So, the final amount to be paid becomes – ₹10,000 + ₹1,800 = ₹11,800.
This amount is to be paid annually. But, since it is calculated monthly, you have to pay this amount in 12 monthly installments. Finally, it becomes – ₹11,800 / 12 = ₹983.33 per month.
So, if planning a long-term investment then invest more by reaping the benefit of the 5paisa margin for delivery trade. But make sure you do a proper analysis to avail maximum returns and benefit from the stock you invest in.
Also, keep an eye on the interest and due payment to face any kind of future loss.
Start trading in the stock market. Refer to the form below and proper guidance will be given to you