Can I trade Buy futures and Buy option with collateral Margin?. If i have extras Cash balance can also be take interest charged?
The collateral margin can be used for intraday equity, buying and selling futures and selling options. However, for buying options you will need to maintain cash in your account. The collateral margin cannot be used for this.
There is no interest charged for using collateral margin. However, for overnight F&O positions, you have to maintain minimum 50% margins in cash and remaining 50% can come from collateral margin. If you use collateral margin in excess of 50% then interest is applicable on the additional collateral used. The interest is charged at 0.035% per day. You can learn more here:
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can “cash equivalent” collaterals be allowed to buy options ?
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Nope. Cash equivalent collateral too cannot be used.
- Even for Intraday Option Buying “cash equivalent” collaterals cannot be used?
- If Part of a Strategy involving option selling and buying, this “cash equivalent” collaterals be used to enter the whole strategy?
Even for intraday option buying you will need cash in your account.
In this case too, you will need cash in your account to buy options. However, if you take short option position first, you will receive premium which can be used for buying options.
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@Manthan_Rajgor @profit there are stock brokers who allow option buying with pledged margin. Also there are stock brokers who allow you to buy otm options. No benefit in blocking excess margin to sell first when you can buy first and sell next to get hedge margin benefits.
Who are those Brokers Pls…
I shall DM you…