Can I pledge stocks and trade equity with the margin I get?
Where can I find a list of all stocks that I can pledge and the margin you provide on them?
My current broker allows me to pledge stocks and use 100% value of stocks as margins for F&O. Why doesn’t Zerodha allow the same?
My current broker doesn’t charge me any kind of interest if I am pledging stocks and using margin for trading F&O. Why do you?
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You can trade in equity intraday (MIS) but not equity delivery (CNC)
Here is the list of NSE F&O list of approved scrips.
On this this list Haircut signifies the value of holdings which is not given as margin. So if haircut is 40 and you pledge Rs 100 worth of stocks, you get only Rs 60 as margin. When a client takes F&O position, exchanges mandate that 50% of this margin has to compulsorily come through cash and rest can be in terms of collateral margin. If a broker in not asking you for this 50% margin, it means that he is blocking his funds on your behalf. The reason he could be doing this is because his brokerage earning from you is much higher, so whatever the interest cost of funding you is covered in the brokerage being charged to you.
The bigger thing of concern to you should be that if a broker is not following exchange regulation, do you really want to trade with him?
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@Bhuvan Does zerodha alert me when I use more than 50% margin from pledged funds? How do I track this to avoid interest charges?
I am wondering if the pledged funds are sold to make up the margin requirement, that is the meaning of pledging right? Generally brokers call before they do that.
- Zerodha should alert in any such situations, so client gets a chance add to his funds to make up margin requirement within stipulated time. How much is that?
- What are interest charges for margin F&O segment, since margin is carried over longer periods, unlike equity day trades where only MIS is allowed.
Hi, I want to lend my shares on rent basis but I don’t want to pleadge in order to trade, please let me know how can I do that.