Intraday Collateral Margin Requirement

Hi All,

If I pledge shares worth 10 lakhs and after haircut the margin received is 7 lakhs. Then can I use this entire 7 lakhs to do “intraday” option selling. My understanding after reading link below is 50% cash requirement for margin is ONLY for “Overnight” trades and for intraday trades, we should be fine with using 100% collateral margin.

Can you please confirm?

Yes, you can. Only for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% in terms of collateral margin.

mam we can use collateral margin for selling options only…but what if it is a spread…then how does it work? @Shruthi

Yes, your collateral margin will be utilized in case of spread orders, since you’ll be having multiple positions of an underlying asset. However, cash would be required for the long side as collateral will be used for selling the options where span and exposure are required.

Note- Margins will be blocked based on the position created (if they are hedged or not).


The margin that brokers gave us where the cash came from ?

Nifty 1 lot selling we require 1 lakh

By hedging it we can get it down to 30k

So if i have 30k as collateral and 5k as cash for option buying and after spread positions margin required is 30k then how much will be required 30k or 1 lac as i have funds based on collateral ?

You will require 30k only, not 1 lakhs.