Hi,
Request anyone to throw some light on the topic of pledging G secs and then utilising the margin of the same for trading FnO overnight positions. I want to create strategies which will be carried for a week or so, hence can i use the margin privided by G Secs for the same as the marging falls under Cash component. Or the 50 percent rule is applicable here as well. As when we pledge margin on stocks we can only use 50 percent of the margin and rest has to be in cash in funds.
Warm Regards
Hi @Sunny_Dutt
The collateral margin received by pledging cash component securities can be used fully towards any margin requirement for your open positions. There is no requirement to maintain cash separately if the margin requirement is covered by collateral from cash component securities.
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So can i initiate overnight options positions by utilising the margin that is provided by pledging these g secs or you can say cash compoment? I want to create both buy and sell legs overnight by utilising the cash component margin.
You can use the cash component margin for sell legs. Option buying requires cash and one cant use pledged margins against it