Comment on Zerodha - Margin Policies

PD commented on 06 Jan 2016, 12:32 PM

Can you please confirm –
1) Does Zerodha charge interest on the margin provided against shares pledged?
2) If yes, on just the margin utilised or the entire pledge created? Also how much %?
3) Am I eligible to get bonus, dividend etc on the pledged shares? I want to create a pledge and keep writing covered calls for a considerable duration.
4) If I have one lot size quantity of shares (Say 500 shares of RIL) pledged and if after haircut on that stock the margin available is more than the required to write a CALL on the same stock, Do I still have to bring some cash too? If yes, how much?
5) Same question for Futures. Asking separately because futures have EoD MTM. So, I believe some cash component will be required so as to avoid small transactions for any shortfall in margin.
6) Is Writing a CALL on the pledged underlying different than using that margin for writing CALL on some Index or unrelated stock? I am asking from Zerodha margin policy point of view and not risk-cover point of view.
7) Que 5 is asked because if I have 2 underlyings pledged to write covered calls will the margin be pooled or will it be recognised in pairs of (underlying-Call)? I hope it does. If one underlying falls in value reducing over all margin without increasing risk level will there be an auto square off? which position gets auto squared off? The other underlying may be up and that call might be showing a loss. Do I have any control on which position gets squared off? IMO, nothing needs to be squared off since there is no margin risk on any position. They are COVERED calls and any RMS should recognise that fact. If not, is there any way I can mark some position as a covered call position and pledge equivalent number of shares?

– Sorry for too many questions. Thanks,

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