I heard that we can invest money (for ex 5Lakhs) in third party FD with any bank and we can use the money as collateral for my F&O trading with a stock broker. How secure is my money with Bank? Please shed some light on this
Please check this thread.
Thank you. However this thread doesn’t talk about the insecurities/risks we have with third party FD. The basic queries are:
If the FD matures in a year and if I don’t have any outstanding amount to be paid to broker, can I liquidate FD (including returns from FD) without any issues.
As an investor, do I carry any disadvantages of having collateral as FD rather than MFs apart from the returns?
Please check the thread, Where Nitin has mentioned that FD as a collateral is not accepted in Zerodha.
To my understanding FD to be made is to NSCCL/Zerodha so its not in broker name basically its clearing house name slash broker …correct me if I am wrong …what is the nightmare in that?
The only Broker which accept FD as Margin of NSE F&O is Globe Capital Limited .
conditions are as follows
- Minimum FDR should be Rs.500000
- Deposit your fund in your trading a/c and send mail request for making FDR (Amount) (Tenure)
just two days process.
then you can use full 100% amount as margin.
Interest accrued will be credited on 31st March of every year after deductin TDS.