Clarity on F&O - minimum 50% cash requirement in Intraday

F&O
1

Let’s say I have equity holdings (say 5 lakhs)
If I pledge and got 4 lakhs as Equity collateral. And also added some cash (say 40K) for P&L adjustment.

Asking for Intraday only.

  1. Does broker require minimum 50% in cash to trade F&O in Intraday ?

  2. Can I use all 4 lakhs to trade in F&O in Intraday with some additional capital for P&L adjustment ?

  3. Even if broker allowed to trade F&O in Intraday without 50% cash requirement, does broke charge any interest on Intraday as well?

2 Likes
2

@VenuMadhav please reply on this

3

  1. Ideally yes even for intraday 50% margin has to be maintained. But at Zerodha we are not asking 50% cash/collateral ratio for intraday.

  2. Yes you can use all 4 lakh for F&O.

  3. We are not charging interest for intraday trading using collateral margin.

4 Likes
4

So i can place all intraday cash order with collateral pledge margin - i do not required any cash balance and no penalty and interest will charge right ? @Ragavendran_M

5

Yes.

2 Likes
6

So if use 100% Pledge money for stock Future or index futures or stock Option or index option or Intraday cash

And square off position Same day

I will not be charged any interest / penalty or anything

I am free to do all the trades with 100% Pledge margin no cash needed
Right Sir ? @Ragavendran_M

7

Yes, it is not required to maintain a 50:50 ratio for intraday trades.

1 Like
8

Hi , i never did any , Intraday trade on stocks , is it possible to Pledge a stock and do the Intraday trade on the same stock !!, and not to maintain 50:50 ratio

9

Yes, if there is any loss it will be adjusted in your cash margin next day.

10

yes yes

1 Like
11

Thank You