While placing an order, why is an approximate brokerage blocked in my account?
We block an approximate brokerage from your buying power whenever you place an order.
This amount is blocked to meet certain Risk Management System (RMS) requirements and to comply with any shortage from margin reporting. The exact brokerage amount will be calculated based on the transaction type (intraday/delivery) at the end of the day.
While placing Market orders, the approximate brokerage displayed in this window is also calculated based on the LTP available at the exchange. However, since this is a market order, there is a possibility of execution prices differing from the LTP. Consequently, the brokerage initially blocked may not be sufficient. The final brokerage will be accurately calculated and reflected in the contract note generated at the end of the trading day.
As of now, upfront brokerage is calculated as 0.5% for Geojit online trading platforms and for offline trading (orders placed through branches/call centers), it is 0.7%.
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