What is margin pledging?

Margin pledging lets you use your current holdings as collateral for extra margin. You can then use this margin for intraday trading or to initiate positions in derivatives. This way, you can trade without adding extra funds to your trading account solely for margin settlement.

SegmentType of transactionUsage limit per position
Equity IntradayBuy and Sell both50% pledged margin & 50% cash
Equity& Index FuturesBuy and Sell both
(Intraday & Overnight positions)
50% pledged margin & 50% cash
Equity & Index OptionsSell Only(Intraday & Overnight positions)50% pledged margin & 50% cash

Note: As per exchange rules, you cannot use the pledged margin for equity delivery trades or for buying an options contract.