hi i have midcap mutual funds
and would like to trade fno… writing mostly
sometimes buying
what is zerodha’s policy to give margin on f&O?
apart from the loss do i need to bring cash to trade intraday? wont be carrying anything overnight
thanks
If you’re planning to trade F&O using your midcap mutual funds, you can pledge eligible mutual fund units to receive collateral margin (after the applicable haircut). You can click here to check the approved list of securities. The collateral margin can be used for futures, options writing, options buying, and equity intraday trading.
However, as per exchange regulations, at least 50% of the total margin requirement for F&O trades must be available as cash or cash-equivalent collateral, while the remaining margin can be covered using pledged securities. You can click here to learn more about this requirement.
So, even if you’re trading only intraday and don’t intend to carry positions overnight, you’ll still need to maintain the required cash component whenever your F&O positions require margin. Pledged mutual funds alone cannot be used to meet the entire margin requirement.
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