Requirement for 50:50 Cash & Collateral

[VenuMadhav]

@AmitUM

Zerodha requires 50% of the margin on overnight F&O positions to compulsorily come in the form of cash (or equivalents) and the balance 50% can be in the form of collateral (pledged stocks and ETFs).

This is an Exchange requirement, not Zerodha’s. Here’s the link
Search for ‘Effective Deposits’ on the above page: At least 50% of the Effective Deposits should be in the form of cash.

@AmitUM

A lot of other brokers do not insist on this 50% rule. In other words, they allow the whole margin to come by way of collateral in the form of pledged stocks and ETFs.

I wouldn’t be able to comment on policies of other brokers, they could be blocking their own cash margins to allow you to take positions.

@AmitUM

Or is this Zerodha’s policy alone?

As I said earlier, its not our policy, its the Exchange’s policy.