i would like to know that since the Pledged margin on liquid fund is cash equivalent, do i still need to have half the margin of a trade as cash?
suppose i need 20,000 margin for bull call spread and i have 1 lakh as pledged margin on liquid fund, do i still need 10000 as cash to enter into trade?? will it still be considered as margin shortfall ??
Since Liquid Fund’s are considered cash equivalent, you won’t need to bring 50% in cash, and it won’t result in margin shortfall.
i can trade liquidbees on the exchange . BUT . i can’t trade liquid funds and MFs on the exchange !
so , in case of the MTM Loss ; if there are liquid funds collateral ; how do u manage to cover up the loss of the client ?
Hi, do you provide the margin against the liquid fund like “ICICI Prudential Liquid Fund - Direct Plan - Growth”. (Note: not liquid bees etf)
Yes, this is available for pledging. You can check the list for all securitues available for pledging here.
Guys , pls help me to decide .
There is a broker who is giving pledge facility for intraday margin in fixed deposit , liquidbees, debt fund , liquidfund etc .
Which one should I choose for the pledge in order to get maximum benefit ?
hope all are cash equivalent with 10% haircut?
Yes liquid funds are mutual funds so I guess you need go through platform like coin - please correct me if am wrong @ShubhS9
There are also Liquid ETF’s like Liquid Bees, DSP LiquidETF, ICICILQ which are listed on the exchange.
Collateral margin cannot be used to settle losses or charges arising from trading. If you don’t have cash to cover this, your account will result in debit balance. You’ll have to add funds, failing to do so, your pledged securities can be squared-off to the extent of debit balance. More details here.
Daily m2m loss applies to both futures and options overnight position ? or just futures where you have to clear the debit balance before end of the day?
At what time and where one can see if he/she has debit balance ? I mean in kite or console where and what time of the day after market hours it gets updated?
Also, I have noticed margin statement does not come before 12 night so …how would someone knows if he/she is has negative margin?
For futures it is must, for any losses in options or change in volatility automatically span and exposure may go up for options so may need to maintain those increased margins.
Which broker giving collateral against FD?
Can I pledge if the holdings of Mutual Funds are through other platform like Groww or Kuvera App?
To pledge your Mutual Funds, you should be holding them in your Demat account with Zerodha.