Does the Total collateral signify total available margin ?
There is also a difference between Collateral ( Liquid Funds ) & Collateral ( Equity ). Eventhough it is said one should maintain 50:50 ratio of cash vs non cash compnent while pledging. If these are not exactly a 1:1 ratio, then would I get a reduced margin? How is the margin calculated then ?
So say suppose I have pledged Rs 1,50,000/- in Equity Mutual Funds & Rs 1,00,000/- in Liquid Funds & I have Rs 25,000/- in Cash. I want to place an option position overnight. What will be my margin available?
Your available margin will reduce after taking the position depending on the margin requirement. For example, if you are taking position in Nifty Futures and margin requirement is 1 lakhs, this much will be reduced from your available margin.
You can easily check the margin requirements using margin calculator or on the order window itself.