Check All Margin Calculators
5Paisa Margin provided is more or less at par with the industry standards across the trading segments. Here we are going to discuss the margin values offered at each stock or investment product level.
This will directly help you to understand how much margin will be provided to you in the stock of your choice and how much money you need for placing that trade.
If you are someone who wants to buy stocks from the stock market more than you actually can, with your trading amount – then you may use margins in your trades.
In simple words, it’s sort of a loan provided to you by your stockbroker based on the trading segment and the specific stock.
When you sign the POA (Power of Attorney), there is a specific section that talks about margin trading. The stockbroker takes the rights to sell off shares from your demat account in case you are not able to return the requisite amount.
Furthermore, this loan you take from the broker comes at a specific interest rate that can be in the range of 14% to 23% depending on the stockbroker and the margin used.
In this review, we will specifically talk about 5Paisa Margin values across different stocks it offers to its clients for trading.
In order to make the numbersÂ easier to understand, we have done clear segregation of margin provided based atÂ share level, lot level and overall margin provided across scrips to the clients of this discount broker.
5Paisa Margin Funding
In order to avail 5Paisa Margin funding, there are a few sets of conditions that you need to take care of.
For example, if you are considering using margin in F&O stocks, then the applicable margin will be VaR + 3 times extreme loss margin,
Similarly, for margin not for F&O stocks, then the applicable margin is VaR + 5 times extreme loss margin.
Some of the other conditions include:
- The client must maintain the maintenance margin at all times while placing trades.
- The broker (5Paisa in this case) may choose to increase or decrease the initial and/or maintenance margin requirements at any given point in time.
- Traders must respect the margin call provided by 5Paisa and take care of any deficiency of margin money in their account as soon as possible.
- All the communications regarding margin funding will be made on the client’s registered contact details by 5Paisa. It is the client’s responsibility to consider these communications as and when provided.
- 5Paisa, without any notice, may liquidate the client’s collaterals and/or securities held in case the client fails to pay outstanding amount post being notified.
5Paisa Margin Plans
Recently, 5Paisa has introduced subscriptions plans charged on a monthly basis and users can get better services depending on the subscribed plan.
As far as differences in margin values are concerned, here are the details:
|Entity||Basic Plan||Gold Plan||Platinum Plan|
|Plan Cost||Free||â‚¹249 Per Month||â‚¹499 Per Month|
|Account Maintenance||â‚¹45 Per Traded Month||â‚¹30 Per Traded Month||Free|
|Margin - Intraday F&O||Upto 3.5 Times||3.5 Times||5 Times|
|Margin - Option Writing||2.5 Times||2.5 Times||5 Times on normal & 10 Times on expiry|
|Square Off Time||3:10 PM||3:10 PM||3:20 PM|
5Paisa Span Margin
SPAN orÂ StandardizedÂ PortfolioÂ Analysis of Risk is a process used by different stock brokers in India in order to calculate the amount an investor/trader must be kept in his/her trading account while using the concept of exposure to incurring any potential loss in the stock market.
The interesting part is, that there is no single value of SPAN margin and it varies from one scrip to another.
The logic behind that is that every stock has its own level of risk associated with it, based on the industry, stock volatility, competition and any global events for that matter.
5Paisa Exposure Margin
Exposure margin is an additional level of margin that is used above span margin. Also, note that both Span margin and exposure margin constitute the initial margin and just one of these do not mean the total margin.
Now, lets quickly jump to see what values of margin you get from 5Paisa at Span and Exposure levels.
Delivery trading requires you to buy shares today and sell them in any of the next trading sessions. Overall, from the industry perspective, the margin provided in this investment segment is minimal.
Here are the details of 5Paisa Margin at specific share level for Equity Delivery:
5Paisa Margin For Intraday
5Paisa provided a margin of up to 20 times in case of intraday trading.
However, this is the maximum value you can get out of the different stocks listed on the stock market.
Depending on the volatility of the stock and the overall market conditions, the maximum values may see a dip or a jump at different points in time.
5Paisa Option Selling Margin
Here are the details of 5Paisa Margin at the specific lot level, if you prefer to trade in derivatives:
5Paisa F&O Margin
Here are the details of 5Paisa Margin overall:
5Paisa Commodity Margin Calculator
When it comes to commodity trading, the broker provided very limited margin.
One of the reasons for that could be that this particular segment has recently been put by 5Paisa for its clients as it did not use to allow its clients to perform trading in commodity earlier.
If you are looking to use margin in this segment, 5Paisa can be as high as 3 times in this segment, which is really low.
5Paisa MCX Margin
Again, although 5Paisa has recently taken the membership of MCX when it comes to providing margin on trades, the broker is a bit sceptical towards going overboard with the margin values it can offer.
In simpler terms, do not expect a lot of margin coming your way if you are looking to use it in the commodity segment.
5Paisa Currency Margin
In currency trading, you can avail a margin of 3-4 times from 5Paisa.
Within this segment, you may choose to invest in currency futures or currency options. Furthermore, you will get a mix of the span as well as exposure margin across currency pairs.
However, in either of the segment, you will not be able to avail for than this range of margin.
5Paisa Bank Nifty Margin
If you are performing margin trading in indices such as Bank Nifty, then the following are the values you can avail:
|Span Margin %||9.2|
|Exposure Margin %||1237.2532|
|Total Margin %||4.24|
|Span Margin Per Share||13.44|
|Exposure Margin Per Share||2684.606|
|Total Margin Per Share||583610|
|Span Margin Per Lot||53692.12|
|Exposure Margin Per Lot||24745.064|
|Total Margin Per lot||78437.184|
5Paisa Cover Order Margin
5Paisa trading apps allow you to place cover orders and use margin trading facility in those orders. However, the margin range is not high and you can expect a margin of 3-5 times in your trades.
If you compare these values with the industry benchmarks, the values are not that high.
The discount broker allows you to place bracket order as well.
However, in this case, the margin values offered are reasonable and go as high as 20 times for specific stocks. These margin values will be displayed to you within the 5Paisa trading apps.
5Paisa Margin Interest
Whenever you use margin funding, there is a specific interest percentage levied by the stockbroker.
In the case of 5Paisa, you need to pay an interest of 18% per annum. However, you need to remember that the interest amount is to be paid on a monthly basis to the broker.
Overall, this interest percentage goes inline with industry standards. Having said that, make sure you use margin funding in such a way that you don’t end up paying cumulative interest, which actually eats up your profits.
5Paisa Margin Charges
There are no separate charges that you need to take care of apart from the margin interest (discussed above).
However, there could be some penalties or fines levied in case you are not able to pay or maintain the balances due at different points in time.
Having said that, make sure to keep your margin money in check especially after getting a margin call from the broker. Not doing that, attracts unwanted charges levied on your account.
5Paisa Vs Zerodha Margin
When it comes to comparing these two stockbrokers, both have their own set of pros and cons. In fact, you can check out this detailed review on Zerodha Vs 5Paisa here.
As far as margin comparison is concerned, 5Paisa scores marginally better than its other discount broking counterpart.
Zerodha plays really subtle as far as margin trading is concerned and does not offer a lot of margin across trading segments. In fact, most of the other stockbrokers in this league fair better than Zerodha in this trading aspect.
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More on 5Paisa
In case you are interested to know more about this discount broker, here are a few reference articles for you:
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