Best way to park idle money while trading in 2021

Previously, liquid fund was the best way to park money while trading. But, with the introduction of exit load and 0.005% stamp duty, I think parking money in liquid fund for short term is not worth.

So, do you all keep money in zerodha trading account or take back money to savings account?

If you do lots of trades, then moving money back and forth is a hassle. I wish zerodha had some auto deposit/ withdrawal feature like hdfc securities.

Anyway, is there a better way to park money, or keeping money in zerodha account is our only option?


Are you a fno trader? or do intraday eq trades?

I am delivery trader. No intraday, no FNO.

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Then you can transfer money when you want to buy stocks, till that time earn saving interest from bank.
Alternatively can invest in liquid bees and whenever you want to take delivery, sell these liquidbees and immediately buy stocks you want but only 80% will be realized on same day.
I personally believe one should not bother much about parking idle funds when liquidity is main concern, I mean one should not bother of earning that extra 50 basis points, let it be in bank or liquidbees, anyhow fixed returns are way too low now and likely will continue the same for next year also.

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Have you thought about holding BharatBond ETF and pledging it with Zerodha?

Pledging works for fno trading, he is investor.

Right. my bad!

For a FNO trader, what is the best mode to park idle funds (sizable amount) for a couple of days?

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Liquid funds are good for parking short-term funds. If you trade FNO, you could need to add funds to meet margin requirements, or you might have a limited cash margin to place the trade.

The idea is that you can invest in cash components and then pledge the investment for collateral margin. which you can use to trade intraday equity, futures, and options writing.

To learn more about pledging, Click here.

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I personally go for money market funds. You can also consider sgb bonds. It can also act as a good hedge to your portfolio

I was under the impression that we cannot trade equity intraday using margin from pledging based on this article.

“You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of equities, indices, and currencies. You will not be able to use this margin to buy Options or take further positions on the equity segment.”

But reading from your linked post, it seems we can !

“The margin received from pledging i.e. collateral margin can be used for trading Equity Intraday, futures & options writing. The collateral margin will be adjusted for the price variations in the security at the end of each trading day, which can be checked on Console under Portfolio> Holdings.”

So if i pledge Nifty bees worth 1L today and say get 90k margin, i will be able to use all of this margin to trade stocks cash intraday and further without needing 50% from cash ?
Would be handy in managing broker balance and dealing with quarterly settlement delays in other brokers ( Z is fast thankfully … )

Yes, you can use the entire pledge for Equity intraday. The 50:50 is applicable only for overnight F&O positions.