Liquid Bees Pledge

[ManoranjanS]

Can collateral from Liquid Bees be used to buy options since collateral from Liquid Bees is considered as Cash Equivalent ?
@siva

[prakash1975]

Can collateral from Liquid Bees be used to buy options since collateral from Liquid Bees is considered as Cash Equivalent ?

liquid bees and margins confusion

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 b…

[ManoranjanS]

@prakash1975 : My question was simply can I buy options with liquid Bees pledge collateral ??

[prakash1975]

My question was simply can I buy options with liquid Bees pledge collateral ??

Yes, you are free to buy options or equity, the complications arise only when you want to short sell.

[ManoranjanS]

Thank you

[tarakesh]

You can not buy option but you can sell. Check with zerodha… this is a very old question.

[prafulls]

Hey Zerodha,
If for pledged liquidbees, then how one gets dividend on it?

In normal scenario, when liquidbees are in demat account, we get dividend in form of liquidbees units only added to our account.

If those are pledged then liquidbees goes from client account to zerodha account. Now once zerodha gets liquidbees dividend as units, how does it transfer to clients account? As a money directly to trading account or in form of liquidbees units only?

Kindly let me know.

[profit]

is the Collateral Margin received by pledging Liquid Bees allowed to be used in trading Intraday equity?(as Collateral margin of Liquid Bees considered Cash equivalent)

[Nakul]

Yes, you can use the collateral margin for equity intraday.

[profit]

Thanks for the reply

[HSL]

But if we pledge liduidbees we receive less dividends as the account becomes non individual from individual ?
Correct?
What is the difference between individual account and non individual account?
Why non individul account receive less ?
If i as an individual pledge with zerodha . Then why should i receive less ?
And if i receive less after pledge then that is a huge big loss in receiving dividend ? Then in this case should i avoid pleding ?
Or do you suggest any best alternative wherein we pledge and get lowest haircut and no loss in dividends too ?

Awaiting for the reply

[Bhuvan]

But if we pledge liduidbees we receive less dividends as the account becomes non individual from individual ?
Correct?

Units are the same for everyone. The number of units don’t differ based on the type if account. However taxation changes. @Quicko can explain more about the taxation.