If the margin requirment is 25k, minimum 50% of this (ie. 12.5k) has to come in cash or equivalent and remaining 50% (ie. 12.5k) can come from collateral margin.
If you’ve pledged securitues which are considered as cash equivalent, then you can use 100% of that margin for F&O positions.
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Can I use my non-cash collaterals for selling options and buying options intraday?
You can use collateral margin for option writing but cannot use it for buying options, for that you’ll need cash.
Hi @ShubhS9 I placed a pledging request today
After that I received a message saying that I need to authorise something to cdsl by today evening
But I skipped reading it by mistake
Can you tell me what it is?
And how to do the authorisation
You can check out this post, explaining the same.
On kite it won’t show, you can check on console.
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Can I use non-cash collaterals 100% for intraday option selling?
will it work for mis only ?
For Normal order(I can release it before 3.30 so it will not overnight position)?
In short I want to use 100% non-cash collaterals for intra option selling. can you advice?
you will be get a sms &mail from cdsl portal…and you should enter you Bo&Dp id …imediatly you will get a otp from cdsl…now enter the otp and and submitt…ok
Margin from pledging cash equivalent securities like liquid funds or liquidbees can be used for commodity trading?
No, you cannot use the margin from pledging cash equivalent securities like liquid funds or liquidbees for commodity trading on Zerodha.
As per the Zerodha support documentation, margin from pledged liquid funds or liquidbees ETFs can only be used for equity intraday trading, futures & options writing (equity and currency F&O). Commodity futures and options cannot be traded using collateral margins.
This is because the exchanges require that 50% of the margin for commodity futures and options positions must be in cash or cash equivalent collateral. The remaining 50% can be in non-cash collateral margin, such as pledged liquid funds or liquidbees ETFs. However, Zerodha does not currently support trading commodity futures and options using collateral margins.
If you want to trade commodity futures and options on Zerodha, you will need to have sufficient cash in your trading account to meet the margin requirements.
Specifically, the above passage from the Zerodha support documentation:
Commodity futures and options cannot be traded using collateral margins.
The above information is fully given by BARD (Google).