Online pledging of stocks for trading F&O

January 31, 2016
Funds and Margins

Traders,

You can now pledge almost 1000 approved securities (Stocks & ETFs) to get collateral margin which can be used for trading futures and options on equity and currency.

Pledging a Stock

Visit the holdings page on Q and follow the steps mentioned below.

  • For all pledge requests placed before 4:00 PM, the collateral margin will be available to trade on T+1 day (next working day).  All requests placed after 4:00 PM will be processed only on the next working day.
  • Margins will be provided after the applicable haircut. Check this list for the applicable haircut on various stocks. A haircut of 10% would mean that if you pledged stocks worth Rs 1 lakh, Rs 90,000 (90% of 1 lakh) will be added as collateral margin to your trading account.
  • You can see this margin under the heading Direct Collateral on our trading platforms Pi (desktop), Kite (Web/mobile), and NEST.
  • You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of equities, indices, and currencies. You will not be able to use this margin to buy Options or take further positions on the equity segment.
  • Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you don’t have enough cash, your account will be in debit balance and there will be an interest charge also called delayed payment charges of 0.05% per day applicable on the debit amount. So assume you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and interest will be applicable for that amount. Check this link for more information.
  • Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account.
  • All interest accumulated will be debited once every month on the ledger. A link to see cumulative interest calculation can be found on the holding page itself. Check the picture below.
  • All pledged stocks will be debited from your demat account until they are unpledged again. The entire process of pledging and unpledging will cost Rs 60 per scrip irrespective of the quantity. So if you pledge 100 shares of Infosys and 200 shares of Reliance, the total cost (pledging + unpledging) will be Rs 120 (Rs 60 x 2). This charge will be debited from your ledger the day you place the pledge request.
  • You will continue to get benefits of all corporate actions like dividends, splits, bonuses, etc. on the stocks you have pledged.

Unpledging a stock

pledge2

Unpledging a stock

  • A stock once pledged will stop showing up in Holdings on the trading platform and you will not be able to sell it unless you unpledge. You will be able to see it on our reporting tool Q.
  • To unpledge, visit the Holdings page on Q and follow the steps as shown above.
  • For all unpledge requests placed before 2:00 PM, stocks will be credited to your demat account on T+1 day. Any request after that will be processed on the next working day. So for example, if you unpledge at 1:00 PM on Monday, you will get the credit of stock in your demat account before trading commences on Tuesday. Anything unpledged after 2:00 PM on Monday, you will receive the stocks only before trading commences on Wednesday.

Do note that if you start running trading losses on F&O using collateral margin, and don’t provide the requisite marked to market (MTM) additional capital, we will have the right to square off your pledged holdings to make up for the losses.

Pledging of stocks is a good way to run strategies like covered calls (pledge stock and short OTM call options), arbitrage between stock and future, and also for taking higher leverage. We will soon start accepting mutual funds also to provide collateral margin.

Happy Trading,

Nithin Kamath

Founder & CEO @ Zerodha, team working towards breaking all barriers that I personally faced as a retail trader for over a decade. Love playing poker, basketball, and guitar. Getting body fat % in single digit is the next personal endeavor :) .

488 comments

  1. Gunjan says:

    Thanks Sir for this product really easy for client to pledge , few query can we use this margin for Cash segment for intraday and pledge for Zerodha and IL&FS Dp both?

    • No, the margin can be used for FnO trading only. Yes both ILFS and Zerodha DP will work.

      • Gunjan says:

        Thanks for clarity

      • Satya says:

        Hi. Nitin, I am confused now. When i asked the same question from your support team I got the response as below
        Q. Could you let me know if the collateral margin is available for shorting stocks intraday.
        A. We would like to inform you that you can’t trade in Equity using Collateral margin.

      • vipul jariwala says:

        Sir,
        Kindly post a list of the 1000 approved securities.

      • Siddarth says:

        Sir, what will be the interest % if i pledge for more than T+1 day.
        Interest % for pledging 2 months or 3 months.? Or even 5 days to 10 days.etc.

      • Keerti says:

        Can I take collateral margin on unrelated stocks, say Dr Lal Path labs & NBCC and use the collateral margin to pay for 50% of the margin required for selling a covered call option position on NTPC?
        The reason I am asking is that I am 150 shares short of the lot size of 4000 on NTPC and either I have to buy more shares of NTPC to put up 50% margin or I can cover this margin requirement by pledging unrelated shares.
        Please let me know if this is allowed. If there is any strategy which can be used to come up with the collateral margin for selling covered calls if one is short of lot size by 100- 500 shares on lot sizes ranging from 4000 – 8000?

      • Chaitanya Matsa says:

        Hi sir…. kite is very user friendly n I lov this app n zerodha…. but the only thing which is making incomplte is bracjet trading for stock options. When we can expect this?

      • Praveen says:

        Sir, following is the sequence of transaction for which I want to know if I have to pay interest / delayed payment charge.
        Fund in rs 4 lac
        Bought 300 liquid bees and short 2 lot nifty option. Bal approx 17 k
        Pledge 200 liquid bees now Bal showing 2 lac. Bought 100 liquid bees more assuming 1lac + cash balance in my account and collateral value will be used for option margin. Thanx.

    • Umesh Ramaj says:

      What is mean by Pleaging?

      • If you have stocks sitting in your demat account, you can pledge them to get trading margins for F&O. Do go through the blogpost above.

      • Venu says:

        Pledge is an activity of obtaining margins against an asset, securities in this case. You could pledge shares that you’re holding in your demat account with your broker, receive margins against such pledged shares and use these margins to trade in the F&O segment.

        In case you make a trading loss with the pledged margins, the broker can sell your shares to realise the losses.

        • Om Prakash says:

          I understand that Zerodha has the right to square of shares in case we do not provide MTM. But what is the extent till which you will not sell the shares.

          For example we have provided collateral for INR 100k. No Cash Margin. utilized INR 50k as Margin. I will be charged 0.05% interest / day on 25k. But till what level of MTM you will not sell any shares. And If we have pledged more than 1 script how you decide how much and which stock will be sold?

          • Om, it depends on market volatility on when we square off your holdings. Ideally we don’t prefer to do this. If the value of your collateral drops below the SPAN margin requirement, it will get squared off. If more than 1 scrip, our system picks the stock and it is random.

            • Kalyan says:

              Hello Sir,

              I am having little difficulty in understanding the interest charge. I have one lakh in equity, hair cut is 10% so i can pledge upto 90,000 rupees. If i want to take a position of 50,000 rupees in F & O, will i be charged interest and i do not have any amount in cash ?

    • Prakash says:

      If stock available in my demat AC can u giving me limits in NSE cash please clarify

  2. Teja says:

    Hi, I m interested in starting a trading account. I have an NRE/ NRO account with YEs bank and currently living in Canada. Went through some online forums where many posts came up showing that residents in US/ Canada cannot operate a trading account in India. Can you please throw some light on this.
    Thanks,
    Teja

    • You can’t open a normal trading account, but you definitely can open a NRI trading account. Check this:http://zerodha.com/z-connect/zerodha/open-an-account/nri-trading-on-indian-stock-exchanges

    • Ashish says:

      Hi,

      I had the same problem before. I got NRE/NRO account in Yes bank and I am from Melbourne, Australia. I wasn’t able to open Demat account here. However, luckily I had Normal savings account with Axis bank before 10 years. So, with that account, I have opened Demat account with Zerodha, and I am very happy with the services of Zerodha so far, specially with their PI software trading platform. I am applying in good quality IPOs and buying A category shares in Delivery.

      You can also try with this option if you got any saving or joint account with your parents in India.

      Cheers
      Ashish

  3. Teena says:

    I am Zerodha account holder. Please answer the below queries:

    1) What is the minimum/maximum value of holding that can be pledged/unpledged?
    2) You mentioned that 60/- per scrip, but in the example mentioned by you (Reliance and Infosys), 2 scrips are pledged. So, the total charges should be 120/- for pledging and 120/- unpledging
    3) Does the value of the collateral varies everyday based on the underlying value of the pledged holdings ?

  4. Vikas says:

    I am one of client of Zerodha.
    Alwasys checking Zconnect for new post/blog.
    Z Team is working very hard and bringing innovative tool for traders,investors.
    According to me this post is just for those traders who are experienced and have little money
    not for novice and few yrs experience traders.

    I am not discouraging clients to not take benefit of it.
    this is really great option to trade money from small capital – but that requires great amount of emotional control and money management.

    so i would request to use is at as last weapon.

    for small traders whose capital is below 1 lac : Play small and play safe , try to build capital first.
    for big margin in account or big traders : this is of no use.
    for experienced traders with little margin : this is useful tool.

    so use is wisely and happy trading.

  5. loke4300 says:

    Hi Nithin,

    This questions is followup to the above statement ” You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of equities, indices, and currencies. You will not be able to use this margin to buy Options or take further positions on the equity segment.”

    Situation – 100% in liquid bees, pledged. wrote options and now squaring it off (buying options) – will the system allow me?

  6. Basu says:

    Hi Nithin,

    I have cash of 1 lakh and Liquid bees worth 1 lakh and ICICI Bank Stock worth 1 lakh,Now i will pledge both Liquid Bees and ICICIBank stock. How do you differentiate between my pledge stock and Liquid Bees ? As you are considering Liquid Bees as cash ?

  7. sandeep says:

    If u reduce the exposure margin.. will be very thoughtful so we get better margin. Do not increase limit but do reduce the exposure margin as it is lying in your account anyways. thanks

  8. aehsan says:

    can we pledge bank fixed deposits / RBI t-bills / govt. securities / bonds also ?

  9. ritesh jain says:

    Hi nitin,
    Do something good for cash segment..as in cash segment u don’t give margin for intraday n posstional base.as compare to other brokers who give good margin exposure. R u ppl doing margin for cash segment. Wil be happy if u give exposure in cash segment also.

  10. Sanjay Arora says:

    Nithin

    1. Are Govt Tax Free bonds like the ones recently issued (IRFC, Railways, Hudco etc.) eligible for margin if transferred to your DP?

    2. I agree that your method of pledging for margin is more secure, but the method some other brokers use (ie. no formal transactional pledge/unpledge takes place but broker somehow provides margin against shares with POA, not sure how they do it) for margin is also desirable. E.g. I would like to churn my equities portfolio, while being free to avail margin for MIS intraday trade.

    Can you tell how other brokers do it and why you don’t wish to do it that way? Maybe you can provide both methods of margin and let the customer take the call on how he wishes to avail it.

    Also, being a newbie the only bees I am aware of are pesky & bothersome creatures but definitely solid, though fragile. Would you kindly throw some light on these liquid bees 😉

    Thanks.

  11. MS says:

    2 comments:

    1 – ICICI doesn’t charge anything for pledge/unpledge. Earlier they used to charge. Of course they make money by charging high brokerage.
    2 – ICICI doesn’t have the 50% cash requirements, I do overnight options call writing all the time. So how are they managing it? Or they are charging and I’m not aware about it.

  12. Dipak Deka says:

    Can you please upload video of this topic.Since I am a novice trader so I am little bit confused so it will be good if you upload a video describing it.

    • Venu says:

      There’s nothing to explain here through a video Dipak. It’d be better if you can call the support team and speak to them who’d be able to explain.

  13. Sathish AR says:

    Hi Nithin,

    Is there any interest charged on margin received through Pledging share. if yes could you please provide more details.

    Also, is there any time frame or period for this ? Can i pledge today use the margin tomorrow for intraday and then unpledge day after?

    Thanks,
    Sathish

  14. Amit Nanda says:

    In one of the earlier posts (http://zerodha.com/z-connect/tradezerodha/margin-requirements/zerodha-margin-policies), you had mentioned, “Unlike brokers like IIFL who keep the stocks with them when they pledge, we pledge it directly with NSCCL (NSE). So we don’t end up lending the same stock to someone else, or charge interest on margin provided.”

    However, now you have started charging interest on pledged amount if the pledged amount > 50% of margin. What has changed between earlier and now to take this decision?

    • We are charging interest only if you use our funds for your position. Ideally we should have charged earlier for this, mistake from our side.

    • sunita dahale says:

      I do agree with AMIT NANDA , what CIRCUMSTANCES has changed for ZERODAH , to charge interest on per day basis on DEBIT , at the same TIME , one is keeping his equity pledged with zerodha / broker ,
      so it is having a BLANKET for undue positions …

  15. Prakash says:

    Great Initiative Nithin.

    I normally go for low risk covered call (long cash + short call). This strategy asks for simultaneous entering and exiting both cash and call. But this strategy may go haywire if unpledging the stocks takes T+1 day. Is there a solution to this?

  16. PANKAJ KUMAR GUPTA says:

    IS THERE IS ANY TIME TO UNPLEDGE OUR STOCKS.
    MEANS THAT THERE IS ANY LIMIT THAT YOU HAVE TO COMPULSORY UNPLEDGE OUR STOCKS WITHIN 5 DAYS.
    OR NOT.

  17. mohanan AGP says:

    Lets Say i have itc 50 qty and i pledge today.. Aftr 5 days i m buying 40 more ITC shares..

    Now i want to pledge the additional 40 shares.. Does it get charged again 60 rs for pledge (i already paid 60 rs for Pledging my 50 qty) ??

    • Yes Rs 60 extra will be charged when you do the additional 40 shares. Rs 60 is the cost for every pledge request.

      • Nitin says:

        Follow up on this:

        So you pledged 50 shares> paid INR 60, pledged 40 > paid another INR 60. Now if I want to unpledge say just 30 shares and then after another 20 shares. So questions:
        1) Can I do this in multiple lots like in example
        2) Will there be any charges for it.

        My situation is more to do with Liquid Bees (not shares), will there be any difference to above answers?

        • Venu says:

          When you pledged 50 shares and 40 shares Rs.60 was charged each time. The charge is for both pledge and unpledge. You can unpledge it multiple times.

  18. Chintan sodha says:

    what are the interest rate for loan you provide?

  19. sameer chandra jha says:

    sir. i have some querry regarding f&o trading.

    on expiry day of january series at 2.58pm , i wrote banknifty 15500pe at rs.8 12lots , i just tried to square it off at 3.00 pm but was not able again i tried at 3.01p.m. , subsquently at 3.02,3.03 i was helpless , i was not able to sell it off , it was square off automatically at 3.24pm .till then the price was quoting of 15500 pe at rs. 124 , and i lost more than 41k

    i called up zerodha at 4.00 pm on the same day , they told me that exchange server was down , please explain me sir how can exchange server be down when price is fluctuating and more than 10000 crores has been traded in particular 15500peof banknifty and it is very liquid counter as we all know.

    i lost my money without my fault . my confidence on zerodha has shattered .
    why should i trade with zerodha in this condition when i am not able to sqaure off my positions.

    sameer chandra jha
    ds4876

  20. sunita dahale says:

    Recently received a copy of general communication-circular from zerodha –
    stressing that henceforth 50% Cash is required and 50% as pledged equity margins;
    if cash is not there in your account , then interest component will be debited.

    my point is to get certain ambiguity resolved by team zerodha.
    Le us assume my own case , I have around equity of 20Lacs out of which equity worth of 12Lacs is parked,
    -pledged for keeping as margin money for F & O;
    ( with either 70% or 80% as haircut , i should get be able to get margin
    of 9.5lacs approx)

    and have only 0.10 L as cash parked in account with zerodha ;

    assume i have a position in equity future for far month ,
    which requires margin of 0.40 L,
    next day for averaging i have to take new position with margin 0.45Lacs and 0.50Lacs
    totaling 0.40L + 0.45 L + 0.50 L = 1.35Lacs,
    then there are M to M debit of
    Rs.0.15 Lacs totalling 1.5Lacs

    as i have STANDALONE margin of 9.5 Lacs ; i suppose -presume -I am safer mode to do transactions

    now confusion as erupted ,
    by your so circular of 50% cash is required ;or else interest will be debited
    do I require to keep 0.65L as cash with zerodha ?

    i suppose Not,
    as i am in SAFE ZONE,
    as equities of present worth 12.0Lacs IS NOT GOING to be 1.50Lacs
    equivalent to margin money required ; hence No interest will be charged to me by zerodha;

    please explain me in details , pros and cons and consequences,
    citing above example only
    as I am / (no one should-be ) NOT INCLINED to bear /pay Interest charges,
    when sometimes our funds to tune of lacs of Rs. ( as a investor /trader) are parked with Zerodha(broker)where we neither opt nor given interest from zerodha (broker)

    • Any position taken on the exchange, SEBI mandates that only 50% of that can be brought via collateral margin and the rest has to be brought via cash. If you don’t have cash, it is brokers working capital that gets blocked.

      So irrespective of how much you have pledged, you have to minimum have 50% of position you have taken in cash. This is not applicable for intraday positions though, as margins are reported to exchanges only on an end of day basis.

      If you have only 0.1lks in cash and take a position for 0.4lks. You are allowed to take position only 0.2lks with the cash you have on hand. For the rest 0.2lks position, you are using 0.1lkk of brokers capital and 0.1lk from your pledged stocks. So your account will be in 0.1lk debit, and interest will be applicable for this.

      If you now make a loss of 15k, it means that you no longer have any cash in your account but actually a negative cash of -5k. You now have taken positions worth Rs 1.35lks, 67.5k + 5k = 72.5k will be the debit balance in your account. So interest will be applicable on this.

  21. Sumedh says:

    Why there is a need of 60 rs per scrip to pledge or unpledge with the lag of 1 working day. Other brokers are offering it for free without any instruction from client.

    • There is a cost involved in pledge as shares have to be moved from your demat account (DP charges). Other brokers can afford to do it for free because they will recover the charges in brokerage. Lag of 1 working day, we will look at reducing this in a couple of months.

    • Venu says:

      When you choose to pledge, there’s movement of stock for which depository charges are levied. Other brokers may not charge you but their higher brokerage will include these charges.

  22. viswa says:

    Can I know the charges for using margin from pledged shares and charges for extra margin provided by zerodha apart from cash+collateral holdings value.

  23. Sandeep Prabhudesai says:

    Hi,
    Is there a way to track all past pledge/unpledge requests online ? Earlier there would have been an email trail. How about now ?

  24. Vaibhav - 9825500195 says:

    I have a Mutual Fund portfolio in my CDSL demat account. It has 7 schemes, a combination of 60% Debt and 40% Equity Funds. Is it possible to pledge and do trading?

  25. sunita dahale says:

    This is NOT FAIR, not at all,
    in the case , when we do not have positions in F & O;
    or in case of having CREDIT positions in F & O ,
    then brokers margin gets increased to THAT AMOUNT as per the same
    or deposit of broker kept at SEBI gets CREDIT;
    for that NEITHER IS GOING to give interest on EARNED CREDIT, nor is there provision by SEBI to brokers to DO so….

    at-least ZERODHA should make a REVIEW in case of it (if at all it is mandatory)
    or at most charge 0.05% per day basis when the account gets into DEBIT ;
    at the same time should pass on interest of 0.04% ( discounted one )to CREDIT AMOUNT that broker is using AS BRIDGING AMOUNT between SEBI and it.

  26. Aditya Jain says:

    I am very much disappointed with zerodha and people of zerodha. Today I made a short in maruti future at 3970 and placed two orders, one sl order at 3991.4 and other order at 3940, high and low made at that time was 3997 and low at 3956, till 1 o clock the high made in the future was 3987.95, i also set an alert at both the prices so i was assured that whenever the price reaches near any of my order i will call zerodha and cancel the other order. I got a message stating that the price of the future is trading at 1940 and therefore the alert got triggered, i call zerodha people and there i come to know that my 3991 order got executed. this has happened twice with me and i am really upset and irritated with the explanation that even though the price is not showing in the terminal that it had reached 3991.4 but still my order got executed and i have to talk to nse. then why i am trading with zerodha? cant zerodha compensate for loss which actually never happened, can zerodha give me an explanation as what stop loss order is and whether does it have any meaning because 4 rs difference the order got executed, netiher it is showing in the terminal that the price had reached 3991. i made loss instead i would have made profit. nobody is ready to even listen and moreover, customer service sucks as their representatives are rude and ignorant.
    People can call me at 7566134034, if they think I am lying, I am in profession and trade because i am passionate but havent expericend anything like this
    Regards
    Aditya

    • Aaditya, this is a common query that clients of most brokerages get. Here is the answer for that http://tradingqna.com/2492/placed-order-which-executed-price-charts-amibroker-other-chart

      • Aditya Jain says:

        this is the explanation which is given every time when there is no explanation, since you have pointed out tic by tic question then I would request you to send me a snap shot of the trade which executed and also how would you explain the alert system which did not triggered whereas i had put a condition that if the price is more then 3990 alert me with sms.
        Basically what you are saying is to protect your terminal fault as i had already spoken to nse people and they straight away said since I am using third party software, therefore, they are not liable for any explanation. i am a client of zerodha and I am using your terminal, when you are unable to show me that the price did not reach the executed price then I need not go any where else for explanation. I had requested you to send me the snap shot and your team is so scared to do so because they know I am right as they have already checked it. I never expected company to give such explanation which has no meaning, basically the explanation given by you clearly indicates that stop loss order has no meaning because in my case there was a difference of 3 rs but still my trade got executed without showing in the terminal. so even if i had put sl at 3995 or 3998 still you would have given me same explanation. it is a win and win situation for you since you are a big firm but trust me if you are not helping me in this you will surely not going to do good because as a company if you cannot support your client then people literally start ignoring you.
        Best regards

  27. Don says:

    If I transfer Liquid Bees from HDFC demat to your margin a/c , will I get the dividends credited to HDFC demat a/c or how does it work?

    Thanks

  28. Amit C says:

    One of your point says that…
    Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you don’t have enough cash, your account will be in debit balance and there will be an interest charge of 0.05% per day applicable on the debit amount. So assume you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and interest will be applicable for that amount.
    I have one query….
    I have pledge my equity and got Rs. 50000 after haircut… now I want to sell Option Call worth Rs. 50000… in this case do I need to have Rs. 25000 as cash balance in my account?

  29. Amar says:

    SIr,
    I have a question. Whether this additional margin is available for commodity trading??
    If not, is there any upcoming product in Zerodha to increase commodity trading margin!!

    Thanks in advance..

  30. Venkat says:

    Hi

    I opened a account recently and I am not getting any support how to setup my account and trade

    I just received email and so much confused on setups

    Venkat

  31. SKG says:

    Hi Nitin,

    My client ID is RS4799. I realised that while calculating the interest on margin used, your system is not considering pledged liquid BEES as cash equivalent. I raised a ticket for this for couple of times but support people is not understanding this. In fact I explained this to couple of persons over phone call as well, but got very poor response. Please let me know how to handle this. Due to this I have closed my positions.

    ticket number 229435

    I know this is not the forum to discuss this but as I am not getting proper response, I am helpless.

  32. Akshay says:

    So,you’ll be charging interest on negative cash balance + the margins you have provided me?
    If i close the position in loss resulting in negative cash bal. Still the interest be charged on the balance Till when?I mean when will you sell the pledged shares?
    Sorry i have never used f&o.
    Thanks

  33. Mehul Shah says:

    Dear Nithin,

    At the time of opening the trading cum Demat account i have specifically asked your sales person whether I will charged any interest or not for utilizing my own margin, at that time i received a answer that no any interest will be chargeable. Now all of the sudden Zerodha is talking of charging interest on the negative balance / cash shortfall. this was not the case with IL & FS demat account whcih my friends are using.

    Interest will be a huge cost for small traders like me.

    • Venu says:

      Mehul, there’s no interest if you’re using your own funds for trading. Its only logical that interest be levied if you’re using others funds for your own trading.

  34. GOPALAKRISHNAN R says:

    Sir,
    Whether, we can use collateral margin for Equity – Delivery or Equity – Intraday??

  35. GOPALAKRISHNAN R says:

    Sir,
    I am new for trade. pls what is mean for ‘Liquid bees’?

  36. veeresh says:

    Sir, Can we use 100% collateral margin for intraday to trade F&O?
    I understand from pledging that if i have 90k as a collateral mrgn. I can use this full value for trading intraday only.
    And to trade overnight i need to have 50% (45k) incash.
    Please clarify.

  37. Arun says:

    Any news on Android app?

  38. Sandeep Prabhudesai says:

    Hi,
    If i sell stock today, do you include the amount as cash balance for today or only after T+2 ?

  39. Ganesh says:

    Stupid question – I have 100 Liquid bees that I pledge and use for various F&O transactions. At the end of every month, I am supposed to get the dividend back as more Liquid Bees units. Does my pledging impact this credit of new units to my accounts? Would they get credited as ‘unpledged’ units?

  40. G A says:

    what type of skills required to be a trader and how to know i become a good trader?

  41. Sreekanth Kolamala says:

    I want to pledge some of my shares and used that margin to buy more shares for delivery. Will just an option be available later on? Is it even possible based on sebi rules?

  42. RON says:

    I am quite fed up trying to pledge shares since yesterday. If I try on a PC, it doesnt give me any message…it just refreshes the page and nothing happens post that. No error message. Surprising, on Mobile, it atleast give me an error message. It says ‘Pledge option available after EOD process. Please try after 8:30 pm’…best is that I was anyway trying after 8:30 pm. Even today it is not working. Can you justify why it give error message on mobile but not on PC!!! Secondly, the most important why am I not able to pledge…Lastly, tried making atleast 10 calls in last one hour (after 10 am) but either the tape of ‘we are closed right now’ !!!(Even after 10 am) is run or nobody answers the call for more that 5-7 mins so I hang up…Its very frustrating to not get support when you need it the most!!

  43. vismadev says:

    Dear Mr. Nithin
    I have joined as a member of ZERODHA AUTHORIZED PERSON recently. My quire is: I already have four referrals under me who had opened account under me with Zerodha before I become a Zerodha AP, will these four client comes under my zerodha AP ID, and will I have the earnings benefits from these four referrals as a zerodha AP?

  44. Imtiyaz says:

    50% pledge rule does not apply to liquid bees. What liquid bees mean. Does it mean bankbees n NIFTY bees

  45. TP says:

    Is it necessary to disclose details of other trading and demat accounts that one may have?

    Suppose I have demat account only as a 2nd account holder and now I wish to open a trading and demat account with Zerodha? Would it be necessary to specify the details of the earlier account where the primary account holder is someone else?

  46. Ranjith says:

    Thanks Nithin for the Post.

    I have a doubt regarding the below statement in your post:
    “Do note that if you start running trading losses on F&O using collateral margin, and don’t provide the requisite marked to market (MTM) additional capital, we will have the right to square off your pledged holdings to make up for the losses.”

    Can the additional capital (in case of losses) be in the form of excess collateral margin or should it be only on free cash? Assume that I am Pledging LIQUIDBEES.

  47. viswa says:

    What is the haircut for pledging sks microfinance as I am getting 15% haircut against 40%. Is the haircut floating up to the maximum of limit like 40%?

  48. Bhaswanth says:

    I see 404 error when I try to download account opening docs from Zerodha site. Can someone help me?

  49. raghavendra d says:

    hai.. my query is whether can we use pledging for option & equity trading/apart from future segment?
    what is the time limit?

  50. shivakumar says:

    Hi Nithin/Venu,

    Please clarify me on this. I am going to use the margin for intraday equity trading.
    Interest will be applicable on the amount received after pledging the shares?

    Thanks,
    Shivakumar

  51. shivakumar says:

    thanks nithin for the information

  52. Arijit says:

    Suppose by pledging shares today I get a margin of 10,000/-
    If today with the margin i take instant CNC delivery of shares worth 9000/- and on T+2 settlement day I transfer 9000/- to my trading a/c.
    Will there be any charges applicable?
    I try the above strategy with other brokers providing instant margin for shares lying in demat a/c.

  53. Santhosh S says:

    Say i pledge 100 qty of Reliance, then after a month another 50 qty & then another 25 qty. And finally unpledge entire quantity at once, how much is cost applicable in this case?

  54. Mayank says:

    Hi Team,
    I saw above that you mentioned that Zerodha will be soon providing this pledging/margin facility for positional/intraday cash market trades.
    Just wanted to get more sense on the timing – is it like couple of weeks/months away or end of CY16 types?
    Your input would help us plan more efficiently.
    Thanks

    • Pledging/margin facility for cash market trades is possible only through the margin funding/loan against shares route which requires us to be an NBFC. We are working on it, but might take time.

  55. naresh says:

    Dear Nithin,

    If I have pledged 100 EQ Reliance, and today Monday I want to sale in Nse, so I have to unpledged before 2 PM so that the next day it will submitted to nse, am I right ? Or it would be short delivery ?

  56. Sandeep Prabhudesai says:

    Hi,
    Is the MF platform live now ? When I try to login, I get a message saying that its live for only Zerodha demat account holders…. What about the ILFS ones ?

  57. Alok says:

    Dear Sir,

    Any product available in NSE which has 80CC Tax benefit and we can pledge also for F&O trading margin ?

  58. Rajat says:

    Hi,

    Suppose I have 50k as cash and 30k of shares which are pledged to give 20k margin. Now if I make a loss of 1k on intraday basis, how it’s going to be settled end of the day? Will it be deducted from my free 50k cash or some of my pledged shares will be automatically sold?

  59. Parimal says:

    1) while opening the a/c. say i am mapping my current demat a/c. ( with sharekhan) at your end, Then is it necessary for me to transfer shares in your pool a/c. before selling ?
    2) in case if i open demat a/c. with you then what is your AMC ? Incoming is free but then what are your outgoing chgs ? what are your demat chgs for transferring shares in my a/c. in case of different DP.
    3)In cash mkt at the time of purchasing my intention is for intraday trading but later on if i decide during the day that i will take delivery then is it possible to change trade type ? provided credit is there in my a/c. for such conversion.
    4) Instant credit of margin is must as that facelity is provided by almost every broker and it saves pledge /unpledge chgs as some body has mentioned above.

    • 1. If you map Sharekhan demat, you will have to sell it through them itself.
      2. AMC is Rs 300 and DP charges are a flat Rs 13.5
      3. Yes possible.
      4. Instant credit from pledging shares not possible for now. You will have to put a request and then the margin is release next day. Other brokers put up their working capital as they also tend to make much higher brokerage.

  60. Parimal says:

    one thing more can we have demo of your pi software for a weak at least

  61. Pavan S says:

    Hello I am new to Zerodha and have a question on PI..

    How do I apply Average True Range and ATR Bands and ATR Trailing stop “study” on charting window of PI?

    Regards
    Pavan

  62. revathi c (trade code pr0629) says:

    I have pledged my holdings and availing margin for trading in futures and writing option. Can I buy bees and pledged to you instead of cash margin. Please guide me how to do it .

  63. Teena says:

    I have 45K in cash and enter an open option position (Put option) on 7 March, margin being 35K approx.
    I pledged shares on 8 March, and received the margin on 8th March. Now I have 48K as collateral and 10K in cash.
    Will the cash requirement of 50% get merged with my old position created on 7th March in case I create a new short position, our I will require additional cash for my new position?

  64. funkytoon_suns says:

    Any plans to increase MIS margin for stocks(especially highly liquid stocks).

    RKSV is offering 15x on almost all the liquid scrips.

    I feel 11x is low that too on few ones. However, I love Pi and other services of Zerodha

  65. keshav says:

    If I pledge the stocks, will it consider as long term capital gain?

  66. Saikat Lahiri says:

    Nithin, In the post you say that “You will continue to get benefits of all corporate actions like dividends, splits, bonuses, etc. on the stocks you have pledged.”. So, will I get the dividend directly in my linked bank account as I do with unpledged shares, or will it be held with the broker (zerodha) and reflect in my zerodha account balance. Thanks

    • It will be credited to your bank account.

      • Saikat Lahiri says:

        Thanks.

        In fact, that has not happened. I pledged 75 Heromoto and did not receive the dividend on those shares, while I received dividend on the unpledged 15 Heromoto that I also held. It seems like there is a gap between what is written here and what is actually happening at Zerodha. I raised a ticket #290786 with Zerodha support yesterday , and am yet to hear back from them.

        • The dividend gets credited to our account, and we in turn credit to your bank account. This might take an extra few days. Having this checked.

        • Venu says:

          Saikat, we can credit the dividend to your account once we receive it to our account. We reconcile dividends on a weekly basis and make payouts in case you’ve pledged stocks with us. Note that as per Exchange regulations, we are to pay dividends within 30 days of having received them and we’re doing this well within this time. Your dividend has been credited to your ledger account. Do not worry, the best industry practices are followed at Zerodha.

          • Saikat Lahiri says:

            Good. Transparency and clear communication are also best practices, so if you had made this clear first up, I would not have had to raise the ticket or ask the question. Live and learn.

            With that said, I must add that you guys are doing a better job that other trading platforms I use/have used, so congratulations.

          • Sandeep Prabhudesai says:

            Why has the practice changed from crediting the bank account to crediting the ledger ?

  67. Sreekumar (RS7910) says:

    Hello Nithin,
    Thanks for introduced zerodha. I was thinking to stop trading due to heavy Brokerages that I paid in past to other brokers.

    It seems few facilities are yet to add with Zerodha. It is possible to set value for buy & sell with other brokers – can’t we make that options possible with Zerodha? Eg. A trader planning to buy ICICI shares once it reach 230 etc….
    Currently that facility is missing with Zerodha. Please do needful. Lots of my friends are interested to move to Zerodha.but these small concerns are pulling them back.
    Please advise.

    Regards,
    Sreekumar

  68. Sandeep Prabhudesai says:

    Why is the ledger balance not showing after 31st March ?

  69. Amolik says:

    When would MF pledging be starting?
    Should MFs be in DEMAT format for pledging?
    Does Zerodha MF platform offer a way to buy MFs in DEMAT form for the ease of pleding?

  70. Swanand says:

    If I map my existing demat account to zerodha, can I pledge shares from that Demat account? Or for pledging, I need to open a new demat account with Zerodha?
    Thanks

  71. Sangita Mishra says:

    my id is DS8948, plz clear my query -is Pledging is 100% safe(means there are no worry about pledged share)

    • Venu says:

      No, the pledged shares are completely safe. The only thing you’ll have to ensure is that if there’s any debit that arises out of the trades that you’ve made using the pledged stocks, is cleared failing which the broker may sell stock to recover the debit.

  72. Avinash Kumar says:

    Hii……..TM Zerodha ,just now i opened my account with zerodha but not yet received my id and password.

    I have encourage all my colleagues also to leave there current broker n come with zerodha but they r hesitating due to no exposure on cash segment…..so kindly look after it it willl be a great boost for small retail traders.

  73. Rachit says:

    Please start margin lending for equity delivery.

  74. rushi karia says:

    Appreciating all the things. Pls. provide or consider also sbi N- series Bond as collateral margin as it gives 9.5% return.

    Thank you.

  75. Vijay says:

    Sir
    When will you start Margin Funding for Equity – CNC ?
    Awaiting Eagerly…

      • Barun says:

        Are you waiting for some kind approval from Sebi/Govt./ RBI, and once you get that you will start margin lending? Or, is it some technical issues, without resolving that you can not start? I am asking because you have been working on it for quite some time, I am not changing my broker on the hope you will start it soon.

        • The margin lending bit for delivery based trades is a grey area. Especially the bit where the broker is not a NBFC. We want complete clarity before we do anything on this.

  76. gatta says:

    Dear Nitin
    Would like to transfer FD to liquidbees and wish to know pro and cons of the same.
    I need support from hyderabad to familiar with zerodha trading platform in F&O and executing the orders as I wish to invest huge hard earned money.

    • Venu says:

      Liquid bees are easier to liquidate unlike FD’s which come with a lock-in. Additionally the dividends you receive from investing in Liquid bees are tax free unlike interest from FD which is subject to tax.

      You can get in touch with Mr.Reddy from our Hyderabad office who will be glad to assist you.

      • gatta says:

        Would request to upload all sort of videos at youtube which may help to learn in operating the platform for beginners like us. The lack of knowledge and support keeping away from market by loyal customer. I tried earlier with support but not satisfied . Would appreciate to provide competent person as hard earned money is going to invest.

  77. Pius says:

    Zerodha , congratulation for your all effort.Your Explanations are awesome. I have one question.

    Can I Pledge and unpledge in the same day same day?

    Thanks

  78. Vipul says:

    As you said that you would be soon start accepting MF for cash collateral margin. So what would be the process for the same. Like for eg. I have the short position in some option contract and would be required atleast 50% in form of cash margin. At the same time I have the Liquid mutual fund in my name purchased directly from the Mutual Fund Website (without distributor). In such a situation what would be the process form me to pledge my Liquid MF in favour of Zerodha to cover my cash margin requirement?

    • Vipul, we will need mutual funds in demat form bought through us for pledging (we are still no accepting MF for pledging). I’d say the easiest way would be to just buy the liquidbees ETF trading on the exchange. Works similar to liquid bought in direct mode (since we don’t charge brokerage).

  79. sandeep says:

    i have pledged shares in zerodha and i have the amount of that shares reflecting in my account. tell me can i take a pay out of the shares pledged amount to my bank account ?

  80. RAJAM SANKAR says:

    My id is DR0612
    Want to know whether I can use funds I get thro’ pledge for MIS .

  81. Nishit Pradhan says:

    Why we cannot use the margin for buying options.? If possible please provide this feature as well.

  82. KAMAL MEHRA says:

    I pledge shares of Rs. 1.00 lac and gets a margin say rs. 80000.00 . I have Rs. 2.00 Lacs as cash margin.
    Now I use Rs. 2.50 lacs margin F&O and close the position before the closing of market. Will you charge the interest on rs. 50000.00 or if i carry forward the position for overnight only than you will debit the interest?
    Pl. clarify.

  83. Jegan says:

    Nithin,

    I would like to earn interest for the margin I am paying in FNO. What ways can I achieve in Zerodha?

    I knew that NSE accepts FD collateral as margin. I also heard that third part FD or Bank Fixed Deposit Receipts can be given as collateral for my margin requirements and it can be used as 100% cash as well.

    https://www.nseindia.com/products/content/derivatives/equities/liquid_assets.htm

    Is it true? Is it possible with Zerodha? Liquid Bees is the only way to earn interest?

    Any plan for margin funding?

    Thanks
    Jegan

  84. keshav says:

    Sir, I have pledged sbi stock, recently sbi announced dividend but I have not received dividend in my sb account..

  85. Paresh Sanghani says:

    I have few questions hope to receive quick response which will help me to open account in Zeroadha
    1) Why do you say “◦Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin” – This is not true I am having Trading account with one big Securities (Brokerage) Firm & they provide complete collateral Margin for all types of trading except for delivery which is always in cash. Is this 50% rule still VALID?
    2) You Said “◦You will be able to use this entire margin after haircut for taking intraday or overnight positions in Futures, and for writing Options of equities, indices, and currencies. You will not be able to use this margin to buy Options or take further positions on the equity segment” What do you mean writing Options ?
    Do you mean we can buy a Call or Put and only Sell a Call or Put ? Please clarify

    • Hi Paresh,

      1. Yes this 50% cash rule is still valid. If a brokerage is allowing you to take F&O positions overnight, there has to be 50% of that margin in cash. For intraday, even we dont’ ask for any cash margins as such.
      2. Margin from collateral can be used only as margin, so yes only for trading futures and shorting options. In case of option buying there is no margin blocked, so yes you need to have cash in your account.

      These rules are set by SEBI, so ideally no broker should be breaking them.

      • Paresh Sanghani says:

        Thanks for the quick Reply Nithin.
        This is a surprise to me, infact my broker does not have any this kind of restriction.
        100% collateral can be used for any type of trading (overnight as well ) except delivery based trading of equity (cash).
        If possible, Can you share the SEBI url which states this rule (I am asking too much 🙂 but it will help me to understand)

  86. Sandeep Prabhudesai says:

    Hi,
    Is the 50% rule for cash/collateral valid even if the collateral is in the form of liquid Bees ?

    • Nikhil.A says:

      Hi.
      As mentioned in the post above, liquid bees are considered as cash equivalent and the 50% rule does not apply.

  87. keshav says:

    You skipped my query..‌

  88. RA9979 says:

    I am newbie in zerodha. but I have past experience in other brooking farm. My queries / suggestion to upcoming zerodha as below.
    1. Though ZERODHA forecast as low brooking farm, so it is need to reduces price for pledging/unpledging . It should be Free or Rs. 10 to 20 irrespective of quantity .
    2. It takes lot of time nearly one day to reflect margin. It should be within one hrs or less though pledge/unpledge is chargeable .
    3. Pledge/unpladge charge not deduct at the time of pledge. It should deduct separately when pledge and when unpledge if applicable.
    4. It is not required manually unpledging the stock if seller want to sale the stock. When seller wants to sale pledged stock, Pi or kite give options to unpledge and sale instantly. unpledge charge then deducted if applicable.

    • Paresh Sanghani says:

      I agree charges should be 0 for Pledging and unpledging like other brokerage firm and it should be instant and we should be able to spot sell the pledged shares.

    • Venu says:

      1. The charges charged for pledging are a cost to us. The shares move from your account to our account and inturn to the account of ILFS with whom we’ve partnered to provide you margins. So we only collect transaction charges on such movement, we don’t make any money here.
      2. You have time until 4’o clock to pledge shares to get margins for the next day.
      3. If shares are pledged, then they’ll definitely be unpledged. The fee is a nominal sum of Rs.60/- which includes service tax. You should know that we haven’t increased this despite the recent increase in Service taxes.
      4. We are working on providing this facility, it requires some integration. We’ll let you know once it’s done.

      • RA9979 says:

        Thanks for reply.
        Its need immediate effect in kite or Pi to minimizes the pledge time, (that is one day before 4’o clock) market is in volatile when opportunity comes no ones can say, so low capital traders need immediate money or margin to purchase future or eq ( intraday ). so wait for new version of Pi where we get instantly margin money after pledge.

  89. Satya says:

    Hi,

    Are the ITM Put options always cash settled?
    I had shorted a May SBI 200 PE and was expecting a the stock assignment at the expiry, but instead the position was squared off.
    I had enough cash in my account to cover the stock assignment(after the margin amount is reversed).

    I had 3,99,982 in Funds and 31,744 in Margin when the position was squared off. The stock assignment requires 4,00,000.

    Could you please let me know why the stock was not assigned to me?

    Zerodha Support gave the clarification as ” your position was squared off by exchange itself,”, which i don’t understand why.

    Thanks
    Satya

  90. nilesh kumar says:

    suppose i have RS6 lac worth of shares of dlf after pledging the stock i got RS5 lac as collateral margin, next day i bought futures worth of RS4.5 lac on 1st trading day of month left with RS50K in my account can i hold it till expiry.
    i always use to trade or invest in eq cash segment ”F&O and collateral margin” both is new for me.

  91. lokesh says:

    Nitin, today I have tried to buy NTPC shares in cash to trade intraday by using Bracket Order. But the order was not executed bcz of not having enough margin. After seen the rejected msg I understood that you are giving 3× times leverage in this bracket order. However, in your previous posts u have said that we can get leverage of 20× times by using Bracket order. So why I am not getting 20× times leverage even when using Bracket order that too for NTPC which is front line stock. This is my first trade in Zerodha. Plz explain me how can I get 20× times leverage intraday by using bracket order.

  92. Deepak Vig says:

    I have pledged 2000 shares of SBIN, when can I expect the dividend for those? As I have another 500 shares and for those the amount is already credited to my bank account

  93. BVJ says:

    Hi Nitin,
    I just do investment in Equity. Never done Intra day. I have the following questions which require answers –

    1.Can i sell the Equities ,CNC Buy , on the same day?
    2. When the margin will be added to my account? If on same day ,is it including the profit if any?
    3. what are the brokerage charges in this case?

    Thanks

  94. Bvj says:

    Hi Nitin

    I have to transfer all the scripts in my portfolio to one of my family member’s account , that is also in Zerodha.

    Could you please let me know –
    1. How much time it’s gonna take?
    2.Does the receiver require to pay any tax
    3. Are there any transfer charges
    4. I have most of the stocks with 250+ days age. Once I transfer them to another account , will the stock age get reset to 0 as the ownership changes??

    I require this transfer to happen ASAP. So I request your valuable help in this re. Is there any way to make this faster?
    I dropped an email to you as well. If you answer through either of this would be great.

    Thanks

  95. tarak says:

    Dear Nithin
    My user id: DT0234

    I have 1500 GAIL shares. I also have 3lac worth of liquid bees pledged.
    I want to use the proceeds from the pledge to sell GAIL options. (covered call strategy)

    I have kept nearly 50K in trading a/c for the MTM.

    1. I’m noticing that q.zerodha.com is showing equity cash balance of -28K. Not sure why this is so ? Not able to get satisfactory answer from support.
    2. Pledged amount can be totally used as for selling GAIL options (initial margin + exposure margin). Is this correct?

    thanks
    Tarak

  96. Deepak Goyal says:

    Dear Nitin

    Thanks for providing such interactive platform. Recently I was on SBI Smart. No one was asking questions there because no one was there to answer. Now we have got you and Venu, so everyone have got issues 🙂

    A crude question: 50% Cash (minimum) + 50% Collateral (maximum) is required to have 100% margin. On debit balance, I would be levied 18% p.a. There is no defined upper limit of Cash (obviously 🙂 100%). Say I am going for 100% cash or any combination of cash-collateral, how at max much I can borrow from you?

  97. Gaurav says:

    Hi

    I have a Zerodha account for some time but was not active. I have started taking notice of you guys and it seems you are doing a fabulous job. Thank you for all the information and transparency.
    I recently bought some shares of Adlabs and Mahanagar Gas (they are still in T1 period). I can see the shares in Q but the pledge button is not active. Will the pledge button become active only when the shares come to my demat account?

    Thanks

    • Yes Gaurav, need to wait for it to reach demat.

      • Gaurav says:

        Thank you so much Nithin. It is working. One general feedback, though. You might want to change the font in the Q section to something more readable. Although, I understand minimalist design is in these days, but the font that you are using currently, does not give a good contrast.

        As a readability test, do try to get someone who does not have a 6/6 vision try to read. At times, stuff as basic as digits can be confusing (imagine confusing digits in your trade!). Try an experiment with the digit 8. Increasing the font or increasing the contrast also does not help.

        Thanks for the great work otherwise!

  98. Deenakesan Deenakesan says:

    Hi
    1. can you enable pledging and unpledging of equity immediately like ICICI direct. It takes one day for pledging and one day for unpledging. Is it possible for you or not. It makes lot of time delay.
    2. When you probably enable mutual fund pledging. Any specific date?

  99. Shivendra Saxena says:

    Can mutual fund be pledged, what other investments can be pledged for margin?

    regards

  100. Rajnish Ahuja says:

    “We will soon start accepting mutual funds also to provide collateral margin.”

    Started accepting ?

  101. Deviprakash shetty says:

    sir,
    when you will start allowing to pledge mutual funds units ?

  102. VIJU PAUL says:

    DEAR SIR/MADAM

    I recently opened a trading account with you and enjoying your good brokerage plans. Previously, i traded in some other firm. They give very good intraday margin

    but very high brokerage. Even by depositing just Rs.1000/-, enable us to trade in one lot of banknifty future. But they squareoff our position, if our loss exceeds 80% of our capital, remaining portion for brokerage and other charges. Now, what i want to say is, please provide some more extra margins to trade intraday, but you can also squreoff automatically our positions, if our loss exceeds 80% of our capital..

    by doing this, there is no problem to you, beside this with your attractive brokerage plans, this seems to be very attractive.

  103. Dahale says:

    while Doing pledging , for some equities -mostly from either A or B group ( assume it to be >Rs15000), q.zerodha , accepts pledging , after clicking , for some it does not ,( from page 2 onwards from HOLDINGS) why so?

  104. DR5790 says:

    Please have the names of stock and the hair cut on them that are eligible for stock pledging some where on your website.

  105. DR5790 says:

    Is it neccesary that we take position in FNO as soon as we pledge the stock or a position can be taken at a later date say after 4-5 days after stock pledging?

  106. Mayur says:

    Sir I have pledged 330 shares and got collateral margin of 4.5 lakhs and now i am running losses and booked loss and now collateral balance is 2.5 lakhs,when you will start selling my shares or you will still zero and then sell all shares.

  107. VIKAS says:

    I have been holding shares of few companies for more than 2 years and plan to hold for few more years. There is significant unbooked long term gain. I plan to enter options trading now and heard good about Zerodha. I plan to pledge my shares for using it as Margin required for options trading. Can you clarify about implications on long term capital gains after shares have been pledged when I actually sell these shares after few years

    • There is no implications on long term capital gains by pledging stocks. But this collateral margin can’t be used for buying options, it can be used only for shorting options. Buying requires premium, shorting requires margin.

  108. Sumit says:

    Hi,

    Lets say I pledge Rs. 1L and receive 90k as margin. Now what happens when pledged share value goes down to -50% in upcoming days.
    1. Will you readjust the margin and make it 45k?
    2. If yes then what is the frequency of readjustment?
    3. Do you provide additional margin(in proportion to 90% of pledged shared) if share value rises after pledging?

    • Venu says:

      The margins are adjusted on a daily basis. The pledge margin varies with the price of the stock, if the price of the stock increases, you get additional margins, if it reduces your margins reduce proportionately. I believe, I’ve answered all 3 of your queries.

  109. inderjitsingh says:

    Is there any brokerage charged on deliverable position on Liquid Bees?

  110. mohanan AGP says:

    Hi,

    CAn we Pledge Our MF Holdings also As similar to Shares..

    If So Please give more details about Minum Amount of Holdings value to create pledge, Charges for pledge etc..

  111. Deepak Goyal says:

    Dear Sir

    My id is RD2640. I purchased 700 shares of SBI on 9th Aug. 2016. Still today I am not able to see any link for pledge under my SBI shares in T1 T2 Holdings in Holdings page. I am not able to pledge the shares. Please guide.

  112. sud says:

    1. Does one need to have a DP account with you for pledging the shares, or we can transfer the shares sought to be pledged in your designated account?

    2. If the shares are sold, do they need to be de-pledged manually by the user, or is the same done automatically at your end? Also any charges for de-pledging?

    3. You have mentioned that the amount of Rs 60 charged by you is towards the costs recovered for demat transfers etc, But if we use our own demat account ( one which is not opened with zerodha), would the charges still remain the same.

    4. Instead of Liquidbees, if we wish to open a fixed depsoit as required towards cash margin, is it possible with zerodha?

    • 1. You need to have a DP with us.
      2. For now you have to first depledge and then sell it. Cost of pledge + unpledge is Rs 60 per scrip.
      3. Only zerodha demat allowed.
      4. Not possiible

      • sud says:

        1. Why is there the requirement to have your DP only? All other brokers allow stocks to be transferred to their pool account/ margin account from where it may be pledged for margin.

        2. Also having a DP mandatorily means that if I have a third party DP, say a DP with any bank, I cannot even sell the shares on your platform. Is this is what is meant by you?

  113. chandra s mohanty says:

    I am already a zerodha account holder I am asking that if a holding a stock with demat as well as in t1.if I pledge the stock the all the quantity pleadge or only demat holdings are pleadge. another question after the pledging the stock if I average it by buying some more quantity then it added with the pledge stock I mean the buy price is average or not. Again after pleging with matgin can I play intraday equity

  114. Shiva says:

    When do we see the credit of Liquidbees units that we are supposed to receive on our liquidbees holdings that is pledged.

    For example if I have pledged 1000 Liquidbees more than 30 days ago. when does the credit reflect un my free holdings in demat?

    Regards
    Shiva

    • Venu says:

      Liquidbees dividends are paid out once a month. They’re transferred to your demat account. GS normally pays out these dividends once in 28 days.

  115. itsmepemba says:

    Hi Nithin,

    Greetings of the day!

    Just one question plz.

    Suppose I hold shares (XYZ Ltd.) worth 1 lac in Demat A/c and I have placed a pledge request. Lets say tomorrow, after receving the collateral benefits, the stock (XYZ Ltd.) value got appreciated by 10 points.

    Q. Will my shares value (In Demat) also gets appreciated with the same amount and the collateral margin also gets updated/revised with the same percentage (after hair cut)?

  116. N says:

    If I pledge Rs. 1 lakh worth of Liquid Bees and Rs. 1 lakh worth of other securities (having haircut 50%), margin available would be Rs. 90,000 plus Rs. 50,000 respectively, so total of Rs. 1,40,000. Out of this, say the actual margin utilised amount is Rs. 70,000.

    If after this, the MTM loss is (say) Rs. 10,000 and there is no cash balance available, will Zerodha sell securities to raise cash or will Zerodha charge interest?

  117. N says:

    1. When the margin money is paid to Stock Exchange, is it like a pool or is it paid customer-wise (like in Equity segment)? In other words, does the Stock Exchange know against which customer account the margin has been provided?

    2. Earlier, Zerodha was not financing so there was no risk of default by customer, but now that risk exists, even if low. What happens when a customer defaults? How do other customers get affected? Supposing I have some balance with Zerodha. What is the possibility that this balance is used towards margin payment for other customers and then not returned due to other customer’s default?

    3. What are your risk management guidelines? As you don’t distinguish between a person having 90% margin (low risk) and having 20% margin (high risk), how do you evaluate risk? Or do you consider risk for all customers as equal?

    4. Is it possible to share Zerodha’s financial statements?

    • 1. It is like a pool. Yes exchanges know individual client margin, positions, holdings etc.
      2/3. The capital deployed for funding the shortfall is less than 10% of Zerodha’s own liquidity. So it is a very small portion. Also as you know we allow positions only if there is atleast 50% in collateral (after haircut which is quite high on Indian exchanges). So the risk is extremely low, and even if something were to go wrong, it is just a fraction of Zerodha’s personal funds being used.
      Of course we distinguish between high and low risk guys. You don’t get to see it in the front end, but our risk team at every point knows who is highest risk on the system. We are one of the few brokers in India who auto square off positions if risk goes beyond what we are comfortable with. We don’t make a phone call etc, we send a SMS and square off.
      We are privately held, can’t share detailed financials. I have publicly spoken about our revenue and profitability.

  118. N says:

    Nithin, could you publicly disclose general stuff eg, your Shareholders Funds, Short and Long Term Debt taken and given and any off balance sheet liabilities. I am not interested in your P&L account, just your Balance Sheet. Thanks.

  119. LAXMAN says:

    IF I AM CE+ OF ANY SHARE, WHEN I WANT TO SQUARE OF I.E CE- OF SAME STRIKE AND SAME EXPIRY DO I NEED TO HAVE MARGIN FOR SUCH OPTION WRITING

  120. N says:

    Is it possible to pledge in Account A and get the margin in Account B?

  121. Mehul Shah says:

    Dear All,

    In previous comments it has been stated that for the shares pledge with the ZERODHA, dividend will get credited to Zerodha co. bank account and then it will be transferred to the our bank account or our ledger account. now my question is Two fold.

    First how do I keep track of this whether the exact amount of Dividend has been credited to by ledger account or not.

    Second once shares are pledged i will not receive any communication from the listed company about, AGM, EGM, notices or dividend instruction. In That case i cannot email to the company for getting Annual report in physical format as listed company will not recognize me. hiow can i get physical copies of the annual report for the shares which are 100% pledge with zerodha.

    • Venu says:

      Companies give out data of the dividend declared per share and we’ll know how many shares you’ve pledged. This helps us reconcile on the dividends due to you which get credited to your ledger on a weekly basis.
      For annual reports, my suggestion would be to pledge all but 1 share. This way, you’ll receive the annual reports.

  122. Msj says:

    Hi Sir,
    My query is that since i opened an account with only equity trading am i able to do trading on futures and options?

  123. Kunal says:

    hi Nithin,

    I don’t trade in F&O but would like to avail margin against shares to be able to buy when opportunities arise. Transferring funds and getting it moved to trading account is a task, need to call customer care at least twice after uploading screenshot on Q. Instead of losing a trade opportunity, it’d be good if we could use margin and fund our account till EoD.

    PS – sent a mail to support last evening, only rec’d an auto reply and yet to hear anything

    Thanks,
    Kunal

    • Kunal, you can use payment gateway for instant fund update. No calling required. You can also pledge stocks by logging into Q as explained in the post above. Can’t find any ticket with your email ID used to ask this question.

      • Kunal says:

        Appreciate the response, Nithin.

        The account is in my wife’s name & our bank account is with IDFC Bank, which isn’t supported by the payment gateway. So, we use the IMPS option.

        Will try the margin facility sometime, thanks.

        Best!

  124. Vaibhav Gaggar says:

    I request you to make the pledging and unpledging of shares on real time basis. It really helps to book the profit in the share and switching over to other share.

  125. Abhishek Gupta says:

    Hi,
    If I have 1 Lakh worth liquidbees in my account and I pledge some stocks with Zoerdha for which I get Rs 1 Lakh margin and I take a short option position requiring 2 lakh Margin, would I be charged any interest?

  126. KishorChothani says:

    Good Morning Nitin Sir,

    Along with necessary proofs I have given the request to enable Futures and Options. I want to trade in Futures and Options starting Monday.

    Tomorrow being a week off, Can you please expedite and make it enable by today? Can you do this favour? Please.

    – Kishor.

  127. Namit says:

    Is Mutual Funds pledging enabled yet? If yes, what are the haircuts?

  128. Vinay says:

    I have applied for IPO of certain company through my bank a/c and got those shares in my zerodha demat a/c. however i cannot see those shares in my Kite or Q account. When will i be able to see those shares in my a/c. Also, can I trade those shares using my zerodha trading a/c?

    Thanks.

  129. Atul says:

    Suppose I pledge 1lk LIQUIDBEES and get the corresponding 90K margin (which is cash as per this blog post). Then I write an option. If there is MTM loss on this option position, will my account be in debit and interest charged?

  130. Prashant says:

    Is the SBI Nifty 50 ETF included in the list of etfs eligible for pledging? It doesn’t show up in the Google Docs list.

  131. Karthikeyan says:

    Would it make any difference in holding with a different exchanges. If i have some 1lakh worth of stocks in BSE and other 1 lakh worth of stocks in NSE, Will the system consider both the scripts for collaterlal margin ?

  132. PJS says:

    Thanks for putting up this page. I am currently not a client. There seems to be some confusion re: pledging client securities for FO. This NSE circular (specifically, page 2 of the annexure – quoted below) seems not to allow it : “However, Members can lodge their own securities only to the Clearing Corporation and not the clients’ securities.” Pledging client securities for FO does seem like common industry practice which this circular seems to disallow.

    Could you confirm if NSE is allowing pledging of securities for FO?

    http://www.nseindia.com/content/circulars/INSP20638.zip

    Collaterals as Margin
    In Equity Derivative Segment and Currency Derivative Segments Members are allowed
    to accept approved securities from clients for margin purposes. However, Members can
    lodge their own securities only to the Clearing Corporation and not the clients’
    securities. Where Member has accepted securities with appropriate hair cut for margin
    purpose, but has to deploy his funds for meeting margin requirements of the client at
    the Exchange, Members may levy interest or delayed payment charge on debit balance
    as per the terms consented by the client.

  133. Dhavalkumar thumar says:

    Can you please create some short video on this with FAQ metion in comments ?.
    It will be become very easy to understand in short time.

  134. SANDEEP REDDY says:

    can any debt fund be pledged if yes kindly give the list of funds

  135. shobha lodha says:

    if I have pledged 5000 hdfc, and shorted 5000. future. How much cash I have to keep.

  136. Ramesh Sehgal says:

    Your unpledge margin policy is a bit different .As the money on sale of equity comes to you first pledged shares should be allowed to be sold.
    I would like to have a demo of your trding platform,how can I do this?

    • Venu says:

      For you to sell shares, they should be shown on the terminal. Pledged shares aren’t shown on the trading platform and hence you can’t sell them without unpledging.

      For the demo, please leave your number here: https://zerodha.com/open-account & a Sales manager will give you a call and give you a demo.

  137. Soumyajit Ghosh says:

    Can I pledge Sovereign Gold Bonds??. If yes what is is the haircut??

  138. jayesh patel says:

    pledging stock manually is not a right way it should be automatically pledge holding as per hair cut. All other broker have this facility and i suffer a lot due to this manual pledge system as i tried to pledge my holding for three times but still today it is not pledge i have waste my 8 treading days without margin .when i mail to support they give me assurance that your query is be resolved tomorrow but still no tomorrow will come. god knows when this problem will sort out,so i request to introduce automatic pledging of holding.

    • Jayesh, pledging takes overnight, our current system can’t give you money immediately. We don’t keep any client stocks in our pool account, hence it takes overnight to give you margin on the stocks you pledge. It shouldn’t take 8 trading days, checking this.

      • jayesh patel says:

        i know it take T+1 days but u can check my account rs3039 and how much time i mail for my query and your staff member shreedevi know it very well. my last pledge request is also currently pending after three days of pledge.so check your programming system why this is happening.

  139. Jegan says:

    Hi Nithin,

    Do you plan to accept MF as collateral? How much times it takes? Will you accept all types of MF? what is the hair cut?

    Thanks
    Jegan

  140. Jegan says:

    Nithin,

    As per exchange rule, broker can accept FD as collateral for option selling. Most broker accepts if the capital is high. Why zerodha is not accepting FD collateral? I am getting 10% hair cut with liquid bees where there is no hair cut for FD as per exchange rule.

    Thanks
    Jegan

  141. Atul says:

    Hi Nitin,

    Suppose I plaged some shares and used the fund for intraday trading in F&O (no carry forward). If I doesn’t have 50% margin in cash but ensured that MTM balance is positive, will it attract for 0.05% interest.

    Please clarify as I am looking forward to take advantage of this feature.

  142. Deviprakash shetty says:

    Dear Nithin ji

    Suppose i have pledged Rs 1 lack worth liquid Bees and no cash in my trading account, if i wanted to buy options how much amount allowed for NRML and intraday basis ?

    • Venu says:

      No, margins obtained from pledging liquid bees can’t be used to buy options.

      • Anonymous says:

        Hi Venu,

        a. Let’s say I have pledged 1 lac worth of liquid bees.
        b. I have sold Nifty option on MIS basis. (as I can not use it for buy option – not sure why ?)
        c. Why is that even to keep the square off position (SL-M) order against the position in (b) I would require complete margin in cash ? Is the net loss not enough ? Just to keep the SL-M orders, cash has to be kept idling in the a/c.

        thanks

        • Venu says:

          When you buy options, there’s an outflow of cash. Money moves from the buyer of the option to the writer of the option. Since margins raised from collaterals is not ‘cash equivalent’, you can’t buy options with pledged stock. However when you write options, only margins get blocked, there’s no outflow of cash.

          If you already have a positions as indicated in (b), there’s no requirement of cash.

  143. Rachana Parmar says:

    Hi Zerodha Team,

    Say I have pldged 100 Q of Security X today. And again after some days I pledge more 200 Q of the same security. I will be chargesd Rs 60 for a single time or in both the transction.

  144. Aashish says:

    hi Nithinji, My Question is dont we get exposure / Limit to buy Equity (Cash) basis the holdings we have ? we can transfer funds within Exchange timeline (T+1 / 2) or same day evening

  145. yogish naik says:

    hi,
    i learn that the pledging and un pledging charges are Rs.60 per scrip.
    but the duration of pledging is not mentioned anywhere.
    i want to know once a script is pledged for Rs.60 how long will it remain pledged

  146. Sudhish says:

    Sir,

    I have few questions, it would be of great help if you clarify on the same.

    1) What’s the difference between Span and Exposure Margin ?
    2) Do I have to maintain extra cash in my account for daily MTM for futures and options ? For example for selling a Nifty 9000 CE , it requires a margin of 60,000 Rs and I have exact 60,000 in my account. I have sold the option at 115 Rs premium but at end of day premium has gone up-to 150 Rs, so should I have to keep extra cash in my account for this MTM loss, and extra is not present will my position be auto squared off ?
    3) Can I withdraw the premium collected by shorting options ?

    • 1. SPAN is the minimum margin required to hold position overnight, below which exchange charges penalty. Exposure is the margin that exchange blocks over and above the SPAN.
      2. Yes you will need to have MTM in cash to continue holding position. Typically square off happens when losses exceed 20% of total margin.
      3. Yes you can.

  147. Vinoth says:

    Can i use collateral margin for buying MCX contracts

  148. Vinoth says:

    In case of using Collateral margin for taking taking overnight F&O position 50% cash rule is not applicable for Liquidbees. So i can maintain required margin for Carry forward in liquidbees and MTM in cash. is it possible.

  149. AKD says:

    Dear Nithinji,

    I’m a “NSE NOW” user & having few queries regarding “Stock Pledging”. Requesting you to kindly clarify….

    1. Can a “NSE NOW” user trade (Intraday or overnight positions in Futures) with only “Collateral Margin”, keeping “0” (Zero) balance in his/her trading account like other “NEST” users? (e.g. you’ll charge 0.05% per day for overnight positions).
    If “Not”, then how much cash margin (in %) should we maintain in our trading account, which will allow us to trade with this “Collateral Margin”?

    2. What is the time limit to reimburse (to balance MTM capital) the amount lost in trading, before that Zerodha will not squire off our pledged shares? Is it within 3:30 pm of the same trading day or before the starting of next day trading session?

    3. You charge 0.05% per day on 50% of the “Total Margin” if requisite cash are not available in the account. If one Hedge his position, then will you charge on 50% of “Total Margin” of each of the scripts separately or on 50% of “Total Margin (deducting Spread Benefit)” only?

    Thanks in advance.

    • 1. Yes you can trade with collateral margin. For intraday, no interest charged for intraday. Yes you can trade without any cash for intraday.
      2. To carry forward position to the next day, you need to have 50% in cash and 50% in collateral. If you don’t, there is interest charged. If total margin is below 80% of exchagne stipulated margin, positions squared off.
      3. 50% of total margin, whatever is blocked by the exchange (after reducing spread benefit)

      • AKD says:

        Thanks for your prompt reply & it’s nice to know that “NSE NOW” users will get the same facility like other software users.

        I think, earlier I couldn’t able to explain you my 2nd question clearly.
        Say, I’ve Rs.1 Lac as “Collateral Margin” with “Zero” cash balance in trading account. Now, I’ve bought 1 Lot of ‘‘Banknifty’’ and sold it with a loss of Rs.2000/- in total. Here I need to “REFUND” Zerodha Rs.2000/- as I’d no cash in my account, otherwise you’ll sell some of my pledged shares (if I understand correctly). So my question here, what is the time limit for this “REFUNDING”? Is it before 3:30 pm (end of the trading session) of that same Trading day or I’ll get a chance up-to the starting of next day Trading session?

        And another question, an “IL&FS Demat Account” holder also can pledge & get the “Collateral Margin” facility in Zerodha, isn’t it?

        Thanks again.

  150. SJ0215 says:

    Hi,
    What if – I pledge the same stock after some days in 2 instances but, unpledge at one go?

    eg- I pledge say- TCS (100 shares today) and after a week 50 shares more of TCS are pledged … making total of 150 pledged shares of TCS….

    After sometime, I unpledge all the 150 shares at one go…

    How much would be the total charges?

  151. Ananth S H says:

    Dear Nithin

    I am bit confused on the the following point –
    “Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin”
    If this restriction is imposed by exchanges, should not it be applicable to all brokers ;
    I have traded in F&O by pledging my shares in ICICI Direct and 100% margin was allowed in terms of collateral. There was no requirement of maintaining 50% margin in cash. Could you pls clarify..

  152. Vinoth says:

    In case of F&O overnight carry forward. Required margin can be maintained only in the form of pledged liquidbees instead of cash. As i read above that 50% cash rule is not applicable if liquidbees are used as margin. Am i right

  153. Vinoth says:

    the margin benefit for a calendar spread would continue till expiry of the near month contract. Is this applicable to Equity segment

  154. Shikha says:

    Hi,

    I opened account with great expectations on quality of service. Let me congratulate you on being successful beyond expectations. There is only one thing that I would like to see on your services. Please star agri commodities. I was surprised that trading is not allowed in these commodities. Are there any specific factors that prevent you from providing these services.

    • Shikha, agricommodities are very tough to manage risk. Usually contracts moving in circuits. There is also the liquidity risk. At our extremely thin margins, it doesn’t make sense to take this risk for us as a business.

  155. barun maiti says:

    hi nitin,
    it takes atleast 5 days to get margin after buying a stock. can you make it in 2-3 days?
    regards,
    barun

  156. Sukesh says:

    Is mutual fund available for pledging?? If not, any idea when can we expect it??
    And thanks a lot for the pledging facility of shares. Helping me a lot personally.
    One last thing, if we trade intraday using the pledge margins and 50% of that margin is not maintained in cash. Will interest be charged on the shortfall in this case??

  157. Thomas says:

    Why does the pledging process take too long(2+ day) and there is a fixed fee of 60+60 for pledging…..also it does not list in your portfolio tracker…

    The most expensive trading company ICICIdirect does not charge any amount for pledging and it is instantaneous pledging and unpledging…

    Also even with pledged amount, I cannot place a cash order eventhough I can bring in the cash on the third day….Pledging is available only for speculative trading…not even for BTST ….

  158. Anil says:

    Hi
    Can I use the pledged amount to buy/sell intraday equitites?

  159. Ravi says:

    Hi
    Please check option of giving margin for delivery with minimal interest rates.

  160. Jinesh says:

    what other instruments other than Liquidbees are considered cash equivalent ?

  161. Som says:

    If I have INR 1,00,000 worth of LiquidBees in my demat account, can I pledge this to buy securities in cash?

  162. shrikant says:

    Hi,
    I have liquidbees in my my account…and I want to pledge the liquidbees for the intraday trading….Will i be charged the interest 0.05% of the margin on trading intraday…If i donot maintain the cash margin…

  163. devendra dholakia says:

    First of all congratulations for a fantastic platform. Both the mobile app as well as web based kite are mind blowing.

    Now to my question/query.

    Lets say one fine morning the stock market collapses by say 50 % whereas clients have only given margins of 12 % to 16 % and god forbid Zerodha defaults/goes bust then in that case does the exchange sell of all the pledged stocks even of the client who has sufficient margin and is not in default??
    This is very important as in a way it penalises the client who wishes to keep large amount of safety margin and hence keeps larger ledger balance as well as securities pledged with Zerodha. Or does the exchange know which client/s are responsible for default and hence only invokes their pledged shares???(sounds unlikely)

    Also do the shares in Zerodha demat, (which are not pledged) , get affected ??

    • If we are talking about such a scenario, yes no matter which broker you are trading with, if the broker gets into trouble and defaults the exchange can square off the pledge stocks first. If stocks are in your demat, exchanges can’t access it.

      • devendra dholakia says:

        Thanks for your reply and making things clear.

        Also a suggestion that in the lmobile app the “free cash” should be termed as margin available.

  164. prabit says:

    Nithin, Can I use margin against share for commodity trading?

  165. shrikant says:

    I had bought liquidbees in my account and pledged them to trade against them as margin…I just wanted to know how and where will i recieve dividend on the liquidbees on the pledged holdings of the same…

  166. pupu says:

    If loss more than 50% of the money in the account, the position gets auto square off, unable to understand it properly. Let’s say for an example. Suppose i have a total account value in commodity section is 10k. If i bought a share of only 1 quantity silvermic aprilfut as normal, margin used for this is 4100 so i have left with 5900 now. Here i want to know will my position gets auto square off if loss exceeds 50% of margin available that is (5900) or it will be square off if loss exceeds 50% margin used that is (4100). Confused !

  167. Abhishek says:

    Can we pledge Mutual fund ?

  168. Aaqib Qadir says:

    Sir,
    If I hold 50% of my margin in the form of liquidbees and rest of 50% I shall use from collateral margin against equity stocks. Would I be free from every kind of debt interest.

  169. Aaqib Qadir says:

    Say, I have 10 lakh rupees of margin available from pledging of X no of shares of a Stock Y.
    and I have 10 lakh rupees of margin available from pledging of LIQUIDBEES.
    And i have no other free cash besides the above two.
    Now, I use 20 lakh rupees as margin against Selling any option derivative on NSE.
    Would I be liable to pay any interest against any kinda of debt ?

  170. Karuna says:

    If I short sell options the margin of which totals 15 lakhs, I have 10 lakhs worth pledged stocks, 5 lakhs worth liquid bees, I suppose I still need 2.5 lakhs of cash.
    Now, what happens to the short option premium which is to my credit, is that added to the cash balance ?
    In that case my cash requirement is reduced to the extent of the short option premium credit ?
    Please confirm.
    TIA

  171. Aaqib Qadir says:

    # Date Margin blocked Cash balance Debit balance Interest
    1 2017-02-16 0.0 ₹-76,224.92 ₹76,224.92 ₹38.11
    2 2017-02-09 0.0 ₹-76,259.92 ₹76,259.92 ₹38.13
    3 2017-01-22 0.0 ₹-66,253.31 ₹66,253.31 ₹33.13
    4 2017-01-21 0.0 ₹-66,253.31 ₹66,253.31 ₹33.13
    5 2017-01-20 0.0 ₹-66,253.31 ₹66,253.31 ₹33.13
    6 2017-01-19 0.0 ₹-66,345.41 ₹66,345.41 ₹33.17

    please note that above is the interest charged on debit balance.
    but i had collateral available on the said dates too and collateral amount was more than the shown debit balance and less than the free cash.
    i dont understand why am i charged with interest.
    besides, the interest charged as shown by Q was nil uptill 24-03-17 and appeared only today ie 27-03-2017.

    PS: my client id is SA0647.
    hope the unwarranted interest charge is reversed soon.

  172. Ajay says:

    When will you start including investments in equity MFs to be pledged for F&O Trading

  173. Saurabh says:

    Hi Nithin,
    Will the good till cancelled orders be available with Zerodha?
    This is really helpful when placing stoploss orders since it is difficult to place order everyday.
    You may keep certain validity like 10 days or 20 days till which the order will have validity.

  174. Koushal says:

    Hi, Nitin can you pls help me clearing a doubt?
    I’ve pledged some securities & can see its value in ‘collateral’ section in kite app.
    But as we’ve to keep 50% in cash for F&O overnight position, i get confused with this.
    May i know is that ‘Free Cash’ section also includes Full collateral margin/50% collateral or its the pure cash i’m holding with me for the day.

  175. shashikumar says:

    You should make it more simple. Instead of next day pledge and next day unpledged it should be done on same day.

    More over the stocks are in your own DP so why the problem. Others are doing even in more simpler way by not going to pledge and un pledge business. Just allow limits on the basis of holding.

    • Venu says:

      Stocks are inturn pledged with ILFS and there’s a charge for same day unpledge. We’re working on making same day unpledge happen. Give us sometime.

  176. shashikumar says:

    I need to know about margins in FUTURES segment. Can any body pl guide me where this information on this site will be available.

    My problem. I have placed a future order with stop loss. I could not understand the difference between the cover order and bracket order even after going through many posts on utube on this subject. The whole problem is all inputs are for people who know basics but of no help for a lay person like me.

    Coming to the problem I have placed an order for a future with a stop loss. The margin is lower. Purchase is done, no stop loss hit and price is above stoploss. So whether this future position will be carried next day or will be squared by RMS.

    • Venu says:

      There are different product types under which you can buy a futures product: MIS/NRML/CO/BO.

      MIS/CO/BO are the intraday product types; meaning these positions get squared off by eod.
      NRML is our carry forward product type. If you buy/sell a Future under NRML, you can carry it forward to the next day provided you have sufficient margins in your account. You can calculate the margins for futures position using this tool here: https://zerodha.com/margin-calculator/SPAN/

  177. shashikumar says:

    Now it is clear.

  178. raj says:

    Sir,

    I want to know the margin for USDINR futures contract. I could not find it here:
    https://zerodha.com/margin-calculator/Currency/ .

    Like for instance,for shares futures its pretty straight forward here: https://zerodha.com/margin-calculator/Futures/

    Thanks in advance.

  179. Sandeep says:

    Hi, I had Kotak trading account before shifting to Zerodha and I noticed they were providing margins based on the stock holdings as a percentage of stock value based on the quality of stock (with out any pledge) which can be used in F&O or cash market trading also. I am not sure if Zerodha has any such options. Suppose I have 900K holding in my portfolio and I don’t want to pledge any particular stock but get some 300K margin for trading (may be with an overall sell restriction for the portfolio based on the margin utilized), is it possible? It will be very helpful if this option is there like it was there in Kotak securities, this will allow us to utilize our holdings anytime without pledging and with adequate safely for Zerodha because of overall restriction on selling holding beyond a point when margins are used. Thanks!

  180. Technofunda says:

    “So margin received from pledging liquid bees will be as good as having cash in your trading account”. But we cant use it for buying options. ????
    Any way around ? because to create cash need to first un-pledge the bees & then sell ( minimum 2 days ).

  181. sudesh says:

    What securities are considered as “Liquid bees ” ? does it include largecap stocks like INFY, RELIANCE ?

  182. Aaqib Qadir says:

    say, i have 1000 shares of Liquid BeES and i have pledged them for margin.
    now, the question is when i will receive the monthly returns of liquid BeES in the form of shares itself, Will those shares be added to pledged shares or will I be having them in my Demat account?

  183. Vaibhav Gaggar says:

    Hi Nithin,
    Can you provide me some timeline you will start instant unpledge.

    Thanks.

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