Hey @hittudiv
Qn1 - You will have to pledge liquid bees for it be considered as margin to open a position.
The collateral margin received after pledging liquid bees are considered as cash equivalent. Liquid bees themselves aren’t considered as cash equivalent.
When you open a position, free cash in your trading account will be considered for half of the required margins and the remaining half will be taken from the collateral margins. In case you don’t have free cash the entire margins will be taken from the collateral and interest charges of 0.05% per day will be charged on the shortfall amount (i.e the shortfall of free cash)
Ex - to short option worth 70000, 35000 will be taken from your free cash & remaining 35000 will be taken from collateral margins. In case you have no free cash & you have collateral margins (after pledging & considering haircut) worth 70000, you will be allowed to open the position, but you will be charged interest of 0.05% per day on the shortfall of 35000
However, Collateral margin received against pledge of liquid bees, will be considered as cash equivalent. So if you have collateral margin of Rs 70000 from pledging liquid bees, you can take a position upto 70000 and not be charged interest
Qn2 - Collateral margin varies based on the price of the pledged security. It changes daily based on the price of the security which is pledged.