How can I use Margin Funding for derivative trades?
Margin pledging allows investors to use their shares or other securities held in a demat account as collateral with their broker to obtain margin, which is updated immediately upon completing the pledge process. This margin can be used to trade in equity derivatives (Futures and Options), meet intraday margin requirements, or fund other eligible transactions. Collateral is categorized into two types:
cash collateral
, which includes funds deposited in a trading account, fixed deposits (lien-marked), or cash balances from securities sales, and
non-cash collateral
, which consists of pledged securities like equity shares, ETFs, mutual fund units, and government bonds. You can use the pledged margin for
equity derivatives
such as
futures
(open long or short positions in index or stock futures) and
options
(write or buy options contracts for both index and stocks). Additionally, it can be used for
intraday trades
, providing margin funding for equity and derivatives trading.
What Can Be Pledged to Get Margin?
How to Access Pledge/Un-Pledge Features?
Related Important Links:
What Can Be Pledged to Get Margin?
How to Access Pledge/Un-Pledge Features?
Last updated: A Week Ago
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