Comment on Online pledging of stocks for trading F&O

Nithin Kamath commented on 14 Jun 2016, 10:18 PM

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.

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