I have a question about pledging stocks on Zerodha. I understand that we need 50% in cash component and 50% from collateral. But, if we do not have the cash component, can we do this?
I pledge 10 Lakhs worth of stocks. After 50% haircut, I get say 5 lakhs as margin.
I do not have any cash in my funds. So, can I trade with 2.5 lakhs without funding my account with any additional cash?
When using collateral margin to trade F&O, the shareholder must have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha.