What does ‘Broker Limit Reached’ mean in the ‘Approved List of Securities at Zerodha’ for pledging?
It means that the said underlying cannot be accepted as collateral for margin.
As Zerodha users we already had disadvantage of OI Limits while buying options. Now the collateral won’t be accepted when you want to sell option. If something is not done about this soon there will be no collateral in the acceptable list.
0dha should raise the issue with the concerned authorities.
Selling otm options also raises OI. Not to mention the risk it comes with. But it is allowed. Putting restrictions on buying alone therefore is a nudge. Switch to another broker to experience trouble free trading which is what I did.
Having said that broker pledging limit may not be in the hands of the broker. Its for the regulators to fix.
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