Yes, you can use collateral margin for shorting stocks intraday. The margin can be used for intraday equity, trading futures and shorting options.
If you want to buy stocks for delivery (CNC) and buy options, you’ll need cash in your account.
Can buy stocks for intraday from that margin?
Yes, intraday you can, using MIS product type.
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Thanks. Buy options is not allowed in MIS product?
No, For buying options, you will need cash in the account.
@ShubhS9 Hi,
i have a doubt regarding intraday cash trading(no fno) can i use collateral amout of etf for intraday cash trading?
Yes, you can use the collateral margin for intraday equity, using the MIS product type.
but today i took intraday trades worth 46916.60 and my opening balance was 46610.80(cash) and 12650(collateral) but still it’s showing available cash -305.80 and i think my collateral amount is not getting utilized at all.
is it due to non PoA account or any other reason for it? please help as i’m very confused how to solve this cash+collateral puzzle
my idea is to trade from 80% of total capital(cash+collateral) and keep 20% capital as buffer. and what i’m assuming for my trades first collaterel amount and then cash amount used so remaining 20% will always be my cash capital.
Abhishek, can you DM your Client ID? Will have this checked.
@ShubhS9 i tried to DM you but i coudn’t. though i DM to moderators with my zerodha ID as well as screenshot of today.
This is how it will display, but you can use the available margin for further trades in MIS/CNC if you wish to.
@ShubhS9 I don’t want to use for any further trades in a day ,my only requirement is i should be able to take trade of 80% of my capital(cash+collaterel) and remaining 20% should be my cash capital only.
kindly confirm whether i can do it with intraday cash trading(no fno) or ay delayed charges will applicable?
There are many low cost index funds that are not part of the pledge list
eg: Midcap 150 and Small Cap 250 index funds of icici, nippon, motilal
Whereas lot of equity small cap funds are pledgeable (non index funds)
Since index funds expense ratios are low, these might be good vehicles for long term investments - how to get them added to the approval list?
Hi Nitin: Besides Liquidbees, will other Money market funds currently considered as cash (example HDFC Money market) continue to be considered as cash?
You can check the list of all the securities that are considered cash-equivalent here: Approved list of Securities at Zerodha. - Google Sheets
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Yes, I purchased the HDFC Money market fund based on the fact that it is in the Approved List of Securities for the cash component. My question was, is there any changes in the policy post some new rule coming up.
Yes, these funds will continue to be considered as cash equivalent.
@ShubhS9 Before May 2, if there was a shortfall in cash component the only consequence was that interest at 0.05% a day was charged.
Post May 2, what are the consequences if there is a shortfall in cash component?
Nothing changes for you as a Zerodha user. Things continue to remain the same. You can check out more details here:
BankBee & NiftyBee (ETF) can be pledged? if so what is the cut off?
This Non cash margin obtained by pledging can be sed for MIS Buy & sell in its full value?
Let us say I got 500k margin by pledging Niftybee. Can usefull ₹500k as MIS margin to trade MIS buy & MIS sell ? iwill have extra cash in the account if iam closing trades at a loss ofcourse by cut off time.
how fast the pledge works to create ? say i I click pledge 5000 units of Niftybee + 2000 units og Bankbee , by what time pledged margin will show in account of the same day/next day
THis non cash margin can be used for niftyfutues/banknifty futures both on MIS & onernigth basis?