Reg. Collateral , Pledge and Margin trade

Hi , can anyone please clarify these

  1. Collateral and pledging are same ?
  2. is any margin trade seperate , without pledge / collateral stocks ( with interest rates little higher) ?

What is " .05% interest on debit balance " , ? say if i get 10k with collate instrument and if i used 8 k in that , will they charge .05% daily for that 8k till i clear that or if i used more than 10 k say bought for 15 k , here 5k is more that 10k collate amount , so .05% daily for that excess amt only ?

  1. (extension of 2 nd question ) if no seperate margin trade , just that is collateraal /pledge amount only , then why calling margin trade , directly can call that as collateral /pledge amount na ?
    Thanks a lot in advance ( sorry for long , multi ques. )

@Bhuvan can you.

On pledging securities, you will be provided collateral margin after a haircut.

We do not provide margin trading facility currently. Right now, you can either trade only with the cash and collateral margin received from pledging securities in your account.

While trading F&O, the exchanges stipulate that at least 50% of the margin required needs to come in cash. Any shortfall in the cash component will attract interest at 0.05% per day. Do go through this support article for more information on this.

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Thanks a lot for your replies and the link .:+1:

1.when will collateral margin get credited in my account if pledging , can do trade immediately after pledging in cosole ?
2. if want to re pledge and sell the pledge instrument for buying shares in equity , how long it takes to get the free cash to buy shares in cnc ?
Thanks .
( Does the new system implemented , as the shares will be in demat only by triggering pledge option and send otp for confirmation as told some days back here in qna by Nithin ? )

If you put in pledge request before 4 pm, The collateral margin will be available for trading the next day, if you put in pledge request after 4 pm, the request will be processed next day and collateral margins will be available in your account the day after.

If you put in unpledge request before 1 pm, shares will be available in your Demat account the next day, for requests made after 1 pm, the shares will be available in your account the day after that.

When you sell shares, funds are instantly credited to your trading account, you can use these funds to buy new shares.

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Regarding Margin Trading at Zerodha

Assuming I have 20k as cash balance in my trading account. What will be the margin limit available to me to trade intraday.

You can check the leverage offered here.

I can park my cash in liquidbees and keep earning something . And .Then also pledge for collateral margin lien, to trade in cash , equity future option and currency .

My query is

Can i also trade in commodity with that pledge ?

If not , then how do I park my money to trade in commodity?


@siva @Bhuvan
hello, if I give liquid bees as collateral then 1} will I receive dividends on then or not? 2} how much haircut is applied? 3} can I use the amount as margin against trades in mcx? 4} are the charges fix or does zerodha charge interest on the amount?

You will continue to receive the dividends.

Haircut for LiquidBees is 10%, you can check haircut for all securities here.

No, collateral margin currently cannot be used for trading in MCX.

There are no interest charges for using collateral margin. You can check out more on this here.