I need to maintain a certain margin any given point of time. If I pledge my shares worth Rs 2 lakh, I will get a margin after a haircut. I want to know if during trade hours can I use 20k from this margin to buy new shares (equity delivery)? And then if I immediately transfer funds from my bank account to Zerodha trading account, will there be any interest charges?
What would be the best way to keep a margin so that I am ever ready to execute a trade without having to transfer funds from my bank account to trading account first hence saving time and not missing the opportunity. Also, how to use this margin effectively so that I don’t have to pay any interest. Or lose the pledged shares.
Remember, I have enough funds in my bank account and I can transfer it immediately after executing the trade. Just that I want to execute the order first with the margin and then transfer funds from my bank instead of vice-versa. Think of it like postpaid.
Funds from pledged holdings can’t be used to trade equity, regulations allow only trading in F&O using that.
What you could do is place order as MIS which requires a fraction of what is required to take delivery/CNC. If the order hits, transfer money from the bank and convert it to CNC. But you would need to have some margin to place the MIS order atleast.
The reason I asked this question at the first place is - recently I converted my Zerodha account into an IDFC 3-in-1 account but what I discovered is one click fund transfer is not realtime. It takes some time for fund transfer to get reflected. There is no auto-debit from bank account while placing an order. So the purpose of switching to a 3-in-1 account was defeated.
I have to read more about the MIS/BO/CO order as I don’t know much about it. But I read another alternate in this forum to buy Liquidbees to create margin and when in need sell them first to buy the desired stocks. But the problem with Liquidbees is, ROI is around 3.5% which is quite low, almost half, considering 7% of keeping funds in IDFC bank account. Also one extra intermediate step is involved to sell the liquidbees first and then buy what you want.
Since I recently moved my portfolio from HDFC securities to Zerodha, I so miss placing orders like charm.
Any hope in future that fills this gap to smoothen the process?