Futures Trading from Collateral Margin

Hello, I want to clear doubt regarding Collateral Margin.

Suppose I have Collateral Margin of Rs. 200000 and Free Cash Margin Rs. 5000 and the required Margin to Trade on Future is Rs. 150000. I take this position around 3 PM. This will use my collateral Margin 145000. But as per rule it’s mandotary to have 50/50 Free Cash and Collateral Ratio or they charge interest

Will i be able to square off my position next day if it’s in Profit or I have to add cash Margin first next day to square off position since the free cash is not 50% as required for Trading ? And what will be the additional charges I have to pay for this scenerio?

what is your collateral margin? is it cash or non=cash or mixed?

What are margins and how can margin shortfall occur? (zerodha.com)

How to find the margins required to take a trade? (zerodha.com)

How much margins or leverage does Zerodha provide?

Margins – Varsity by Zerodha

Read these articles, bcos you are asking the same question

It’s non cash

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and what did you learn from the links if it is non-cash?


When trading using collaterals, Exchanges stipulate that for F&O positions, 50% of the margin needs to compulsorily come in cash or cash equivalent collateral, and the remaining 50% can be in terms of non-cash collateral margin. If you do not maintain sufficient cash or cash equivalent margin for the position (75000, 50% of 150000 in your case) and use non-cash collateral to fund the margin requirement, you will still be able to exit your position the next day.

However, you will be levied a delayed payment interest charge at the rate of 0.035% per day on the shortfall. In your case, the interest will be levied on Rs.70000 (75000-5000).

Hence, the interest charge = 24.5 (70000*0.035%)

You may check out this support article for details.