If we pledge an asset as collateral (say Fixed deposit or Niftybees or shares), we get margin.
Next steps is what I am unsure of
If I have say pledged assets worth 1 lakh and so now I have margin of 1 lakh available with me
If I short 4 lots of nifty which requires me to give total margin of say 90,000. Will the available margin from my pledge be enough or is there any requirement for cash component to be deposited also.
What happens if I book a loss of say 10,000 on the above short sale?