Comment on Online pledging of stocks for trading F&O

Amit C commented on 02 Feb 2016, 03:56 PM

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?

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