What is the benefit of using Liquidbees for margin, as opposed to nifty ETFs? On the point run, nifty ETFs will give better returns. Haircut for both are the same.
You can now pledge approved securities (Stocks & ETFs) to get collateral margin which can be used for trading futures and options on equity and currency. Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin.
Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account. Whereas NIfty ETFs are like equity stocks and these are not a Cash component.
Margin consideration: (When you have pledged liquid bees, ETFs, and equity stock)
1 >>> 50% of the required margin blocked from equity collateral margin.
2>>> the remaining margin will be blocked from Cash equivalent.
3>>> Any shortfall after consideration of cash equivalent then remaining amount will be debited from the Cash balance.
If you have pledged only equity and ETF stocks as a collateral margin, only 50% of the required margin blocked from equity collateral margin and remaining should be Cash balance.
Margin consideration: (When you have Pledged ETFs and equity stock)
1 >>> 50% of the required margin blocked from equity collateral margin.
2>>> remaining 50% from Cash balance.
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How ?What is the procedure ?
Kindly elaborate your Query?
Suppose I want to sell Option Bank nifty tomorrow which requires 30000/-margin (suppose) andI have only 16000 (suppose)in my trading account but have three stocks out of this list worth 40000/ …Now how will my sell order go through ?Will the terminal automatically make adjustments and pledge my shares and will let my order through Or first I have to sign/mandate etc ? Hope I have made it clear
The collateral margin facility is not an automated process to avail this facility one needs to pledge stocks.
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