Will brokerage and taxes be considered when margins are blocked for my trades in the MCX segment?
For MCX futures and options contracts, when you place an MIS order or Cover Order (CO), in addition to the margins blocked for your position, 0.01% of the turnover (transaction value) will be blocked (will be part of margin used) per order.
This is done in order to cover for CTT, Exchange transaction charges and SEBI charges.
Let's understand this with an example -
You buy 1 lot of Crude oil futures at 3610. The SPAN & exposure margin required is 58600. In addition to this, 0.01% of 361000 (3610 x 100) i.e the turnover will be charged. Now the margin used will be 58636.1 (58600 + 36.1).
Now, let's assume you sell it at 3610 itself. The SPAN & exposure will be unblocked. However, for the sell side of the trade 0.01% of 361000 i.e 36.1 will be blocked. The total margin used will be 72.2.
Note: 0.01% of the turnover will be charged the moment an order is accepted by the system. If an order doesn't get executed and gets cancelled by the system at the end of the trading day, this amount blocked will be released.