Overnight liquid funds investments - Are there ANY costs involved?

Zerodha
1

Hey recently Zerodha did quarterly settlements.
As I had opted for buying overnight investments in liquid funds, Zerodha bought BoB fund for me.
@nithin Are there really no costs involved in this transactions?
I actually found that I gained ₹5 instead!!!

2

Nopes, no cost on this. Fixed income instrument, so you earn something as well.

3

And are any liquid funds are considered as cash equivalent by NSE or just LiquidBees.
Also why is it that collateral of pledged liquidbees can be used for selling options but not buying, when buying have limited risks and selling naked options very risky?

4

When you pledge, you get “Margin”. Margins can’t be used to buy options or buy stocks. You need free cash for that. Margins can be used only for trading futures and shorting options (which needs margin)

2 Likes
5

Thanks Sir,
Just to get my ideas clear -
I pledge some liquidbees and I get margin. By using that margin I can

  1. Buy Equity Delivery - NO
  2. Buy Equity Intraday - YES
  3. Sell Equity Intraday - Yes
  4. Buy FUTIDX/FUTSTK Carry forward- Yes
  5. Sell FUTIDX/FUTSTK Carry forward - Yes
  6. Buy FUTIDX/FUTSTK Intraday - Yes
  7. Sell FUTIDX/FUTSTK Intraday - Yes
  8. Buy OPTSTK/OPTIDX Carry forward - No
  9. Sell OPTSTK/OPTIDX Carry forward - Yes
  10. Buy OPTSTK/OPTIDX Intraday - Yes
  11. Sell OPTSTK/OPTIDX Intraday - Yes
6

One change

Buy OPTSTK/OPTIDX intraday - NO

1 Like
7

Is there a way to do this manually everyday at EOD?

8

do what?

9

Buy liquidbees with the free cash in zerodha account after market hours and sell before market opening.

10

But what’s the use of this?
You will have to pay charges each time.
Won’t it be better if you just buy once and then pledge to get margin for trading?
It seems you are not getting the idea of liquidbees investments.