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How can I use Margin Funding for derivative trades?
Margin pledging allows investors to use their shares or other securities held in a demat account as collateral with their broker to obtain margin, which is updated immediately upon completing the pledge process.
This margin can be used to trade in equity derivatives (Futures and Options), meet intraday margin requirements, or fund other eligible transactions. Collateral is categorized into two types: cash collateral , which includes funds deposited in a trading account, fixed deposits (lien-marked), or cash balances from securities sales, and non-cash collateral , which consists of pledged securities like equity shares, ETFs, mutual fund units, and government bonds.
You can use the pledged margin for Derivatives such as Futures (open long or short positions in index or stock futures) and Options (write or buy options contracts for both index and stocks). Customers can use their shares as collaterals to use against 100% margin requirement in derivative for carry-forward positions. In carry forward, we will only charge a nominal interest of 0.04% per day .
Additionally, it can be used for Intraday trades , providing margin funding for equity and derivatives trading. Customers can pledge their approved shares and use as collaterals to trade in Intraday. Customers need not have any cash and they can use their collaterals up to 100% of the margin requirement. If the customer trade in Intraday we will charge a nominal interest of 0.03% per day.
Related Important Links:
What Can Be Pledged to Get Margin?
How to Access Pledge/Un-Pledge Features?
This margin can be used to trade in equity derivatives (Futures and Options), meet intraday margin requirements, or fund other eligible transactions. Collateral is categorized into two types: cash collateral , which includes funds deposited in a trading account, fixed deposits (lien-marked), or cash balances from securities sales, and non-cash collateral , which consists of pledged securities like equity shares, ETFs, mutual fund units, and government bonds.
You can use the pledged margin for Derivatives such as Futures (open long or short positions in index or stock futures) and Options (write or buy options contracts for both index and stocks). Customers can use their shares as collaterals to use against 100% margin requirement in derivative for carry-forward positions. In carry forward, we will only charge a nominal interest of 0.04% per day .
Additionally, it can be used for Intraday trades , providing margin funding for equity and derivatives trading. Customers can pledge their approved shares and use as collaterals to trade in Intraday. Customers need not have any cash and they can use their collaterals up to 100% of the margin requirement. If the customer trade in Intraday we will charge a nominal interest of 0.03% per day.
Related Important Links:
What Can Be Pledged to Get Margin?
How to Access Pledge/Un-Pledge Features?
Last updated: 5 Months Ago
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