Will brokerage and taxes be considered when margins are blocked for trades in the commodity segment?
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Will brokerage and taxes be considered when margins are blocked for trades in the commodity segment?

An additional 0.01% of the turnover is blocked for Margin Intraday Square-off (MIS)and Cover Orders (CO) for commodity futures and options. This is done to cover Commodity Transaction Tax (CTT), exchange transaction charges and SEBI charges. To learn what Margin Intraday Square-off (MIS)and Cover Orders (CO) are, see What does CNC, MIS and NRML mean? and What are cover orders and how to use them?

Example scenario

1 lot of crude oil is bought at ₹6,214. The margin required is ₹3,58,101. In addition to this, 0.01% of the transaction value i.e 0.01% ₹6,21,400 ( ₹6,214 * 100 (1 lot is 100 BBL) ). The margin now will be ₹3,58,101 + ₹62.14 = ₹3,58,163.14

Assuming that a sell order was closed for the same price, the blocked margin would be released. However, the used margin on Kite will reflect ₹62.14. To learn what is used margin, see What does margin available and margin used mean?