Margin for holding


I have holding and free cash but, whenever i buy derivative contract, the margin get blocked from cash

I want to know when my stock holding will be used as Margin and how much haircut happens from stock value



Hello Trader,

You can use the margin from your holding stock for trading, only if you pledge the stock first.

Check this link for more info regarding the same:

This is a big hassle of pledging/un-pledging of our holdings to get margin to trade. Can this be automated by ZERODHA where we can be provided the margin against our holdings after the necessary haircut, many brokerages are providing this facility or have I got this wrong information.


Zerodha’s pledging services are with ILFS. When a client pledges his shares with Zerodha, what happens in the background is that these pledged securities are moved to Zerodha’s pool account. From here it is then moved to the ILFS pool account. ILFS will then provide the applicable margin after haircut on the pledged shares.

All pledge requests placed before 4pm are sent to ILFS the same day. They process it on the same day and the margin is deployed into the client’s account before the start of the next trading day. All pledge requests placed after 4pm will be sent to ILFS only on the next trading day.

Once Zerodha starts their own pledging services/margin lending, this should be an instantaneous process.

1 Like