What is pledging?

Zerodha Zerodha trivia
21

if intraday ; then no interest ! am I right ?

22

Yes but ideally one should have cash.

23

if this is so , then ; does zerodha allow to intraday only with the pledge amount ?

24

Current system will allow it.

25

How exchange’s make sure brokers is putting his own funds . It is somewhat similar to broker funding positions of clients only difference is that shares are pledged .

26

Brokers need to submit records to regulators on regular basis, few will be daily, few weekly,monthly, quarterly. All the transactions are on line so it will leave a track behind them. Also there will be audits conducted by each exchange,sebi on regular basis so there is no way broker can compromise on these and if anything is found unusual the consequences will be critical so no decent sized broker want to screw up.

27

Thank you for this information @nakul @nithin @siva.

1 Like
28

If i Pledge 1Lakhs worth of Infosys shares, after haircut, assume i get 80000 Rs. In next few days what if Infosys share drops down 50% and total worth is now 50,000.

  1. what would be the collateral margin value now.
  2. what if i am already holding a FNO position.
29
  1. Your collateral margin would be reduced to 40000.
  2. It depends on the margin requirements.
30

Is there any effect of pledging, on the overall appreciation of the stock.
For a regular option writer, does it makes sense to pledge all their fixed/ long term equity assets (considering there are no charges expect the one time pledging cost).

31

No effect.

It makes good sense.

32

Can you please suggest by name liquidbees or liquidfund which is preferable with their returns. I am looking for monthly or quarterly payout of dividends in my ledger instead of growth option.

33

@Bhuvan Can you.

34

I have one doubt as it was mentioned that we can’t use margin from pledged shares to buy options. Is this true for buying options Intraday also.

35

Hi i want to know if i pledge 1300 shares of hdfc. Will the pledge charges be (60+GST) x 1300?

36

Pledging means to sell both your clothes and your house. Avoid leverage.

1 Like
37

First of all, if you have 1300 shares of hdfc, congrats on a huge stable portfolio. Second, you will only need to pay 60 plus tax totally regardless of the quantity of the shares you pledge.

38

Charges aren’t based on quantity, doesn’t matter if you pledge 1 share or 100, charges will be 60+GST only.

39

Does LiquidBees count as cash component, for 50% cash margin, if pledged ?

40

Yes.