Well yeah. I ll show how it helps. So let us assume your selling nifty options. Margn blocked is approx 30K per lot. Lets us assume conservatively in 1 series you sell 10 lots or 5 lots at a time. Approx margin blocked = 3 lacs. In a fixed deposit you get 9% /annum or 0.75% / month. So 2250 for 3 lacs / month you loose per month. Only for 10 lots you loose 2250/ month. That means you are loosing 27000/ annum for selling 10 lots even if you pay 0 brokerage. Compare that to 10 Rs / lot which non other discount brokerages charge who give margin against FD. Here I save 27000/ annum and pay him a little more brokerage but it saves a lot of money. and lets say you gave a deposit of 30 lacs for margin with no brokerage . Broker will take both brokerage and your tax.........
In 3 lacs you save 27000 . In 30 lacs you save 270000 . The numbers work in your favour.
In 3 lacs you save 27000 . In 30 lacs you save 270000 . The numbers work in your favour.
So do you mean that if you become an Alpha member, you can continue to earn the FD interest rates on the margin money?
What do brokers like Zerodha do with our margin money?