Comment on Online pledging of stocks for trading F&O

Venu commented on 02 Feb 2016, 03:05 PM

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.

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