Hey,
I know that Liquid bees are considered as cash equivalent by exchanges. Hence when I pledge them, all the collateral margin can be used to buy and hold any overnight position. The 50% cash rule isn’t followed here. Hence no interest will be charged if I used collateral margin only and there is no need for cash component.
But, customer support executive told me otherwise.
So, can anybody clearly explain me, what’s correct?
@nithin Could you please confirm here that you mean that even if we are pledging liquid bees one cannot use this as free cash for selling or purchasing options?
@nithin
Is there any circular proving the cash equivalency.
Also do all brokers allow this or is it totally dependent on RMS of the broker.
In short is it a right or priviledge?
TIA
Can this currency be exchanged for any fiat currency? For some reason I hadn’t heard about it for some reason. But in general it’s an interesting thing, I’ll need to highlight it and study it.