Comment on Cover Orders - For Higher Leverage

Nithin Kamath commented on 14 Jan 2014, 05:37 PM


If you pledge 3lks of stock, based on the haircut, collateral margin is added to your trading account. Assume the haircut is 20%, so out of the 3lks stock given 2.4lks is credited to your trading account. You can use these funds to trade futures and options only, and not stocks. You can use MIS, CO, or NRML, it is upto you, no restrictions on that.

Hope this clarifies.


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