Does axis direct give interest on funds blocked as margin?

#1
Hello,


I am looking for some clarifications on axis direct trading account. Suppose I write some options and 10 lakh rupees is blocked against that as margin. Will that 10 lakh counted as saving account balance and would I be getting interest on that?

What about FDs? If I make some FDs in linked Axis bank account and can it be counted against margin money?

Thanks in advance.
 
#2
ideally, yes the brokerages are supposed to give you interest..

but my experience has been that the funds received are not much .. cos of low period of holding & the cash size..

specifically Axis rules, i dont know..
 

mohan.sic

Well-Known Member
#4
Hello,


I am looking for some clarifications on axis direct trading account. Suppose I write some options and 10 lakh rupees is blocked against that as margin. Will that 10 lakh counted as saving account balance and would I be getting interest on that?

What about FDs? If I make some FDs in linked Axis bank account and can it be counted against margin money?

Thanks in advance.

1)when you write options, the margin held will be in trading ac. Not in savings ac. So your saving ac will not pay you any interest.

2)Even If you exit the position and if the fund is in trading ac, broker will not pay any interest on credit balances in Trading Ledger.

3) No. FD's cannot be considered as margin for Futures trading. But there is a scope, where you can pledge your FD with Axis Bank, get funds and use it for trading. But you will be paying around 15% rate on that loan for full period, whereas, as said before the funds even if not used for trading, and remain in your ledger will not give you any return in the form of interest. You have manage to repay only from returns on investing/trading.
 

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