No, you can buy liquidbees and earn daily dividends on it, the day you want to trade you can sell them and on same day you will have funds available to trade. Can see charges on that here.
How much return do they earn (annual return)?
- Do what Siva says if you want to buy options, futures or stocks
- If you want to Sell options in the long run or short futures, buy liquidbees or Liquid MFs listed by Zerodha to get collateral after haircut.
Siva’s method is good for investing in stocks, but if you are planning to trade in derivatives or trade stocks intraday, the best thing is to buy liquid bees or any other liquid fund, and pledge it, you’ll be given margin against that to trade.
Yupp but not currently trading derivatives. Just looking to enter into nifty bees by March or April so need to park my money in liquid bees and I don’t want to keep it in my bank account. @namitjain2890 do you know how to sell fractional shares of liquid bees?
Not possible, you’ve to wait for it to be 1 unit before you can sell them. But that fractional share as far as I know will still keep earning dividends and will remain in your demat account. So the next time you invest back into liquid bees, the new dividends will be added to it.
Edit: Here’s a link for more details, you can sell it off-market it seems https://support.zerodha.com/category/mutual-funds/understanding-mutual-funds/articles/redeeming-fractional-units
Stocks trading is not allowed with margin received from pledging
I think MIS orders shouldn’t be a problem, or is it?
I wouldn’t even assume they would earn any interest if I would be you anyway on so many reasons I can’t even say that much. We can really make this happen with us for really many levels. Where else it’s possible to make sure all is fine.
I once I asked @siva, he confirmed cash intraday not allowed using margin gained by pledging.
However I read @nithin’s comment on z-connect blog that zerodha can’t stop you to use margin for cash intraday actually.
Legal or illegal? I am not sure.
I thought since it’s a MIS trade, we’re guaranteeing that we’ll square off the trade and that our trade won’t go through pay-in/pay-out obligation, hence margin shouldn’t be a problem, if we convert that trade, zerodha checks for cash or stock depending on buying or selling. For example you need stocks in you demat to sell, but you can sell in MIS even if you’ve no stock balance, all you need is margin, the same should hold true for buying.