Pledging Liquid BeES

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?

You are right, liquidbees is considered as cash. Check this post. But margin from pledging can’t be used to buy options.

@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?

It can be used for margin purposes, so for trading futures and shorting options. This can’t be used for buying options.

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?

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.

This is not a currency? Its ETF

Where can I check margin shortfall penalty that is charged.

@nithin sir what if I am deploying some option strategy and it needs buying some option legs as well, can’t I use pledged funds?

You cannot. To Buy Options you will need cash in your account.

Thanks for the prompt response