While placing an order, why is an approximate brokerage blocked in my account?

When you place an order, an approximate amount is blocked from your buying power to cover brokerage and other statutory charges. This is done to meet Risk Management System (RMS) requirements and to ensure compliance with margin reporting norms.

The blocked amount is provisional and is based on your order type—whether intraday or delivery. The final brokerage is computed after the trade is executed and will be reflected in your contract note at the end of the trading day.

In case of market orders, the brokerage estimate is calculated using the Last Traded Price (LTP) available on the exchange at that time. However, since the execution price may differ from the LTP, the initially blocked amount may not exactly match the final brokerage.

For delivery-based trades such as Cash, BTST, and MTF, the upfront brokerage is calculated as 0.5% for orders placed through Geojit’s online trading platforms and 0.7% for orders placed through branches or call centers.

For futures contracts, upfront expenses are typically blocked in the range of ₹50 to ₹120 per lot. For options contracts, the blocked amount can range between ₹30 - ₹60 per lot.

If you are long in options, the upfront expense will be blocked in your ledger, and only the balance amount will reflect in your available buying power