Margin pledging lets you use your current holdings as collateral for extra margin. You can then use this margin for trading or to initiate positions in derivatives. This way, you can trade without adding extra funds to your trading account solely for margin settlement.
Segment | Type of transaction | Usage limit per position |
Equity Intraday | Buy and Sell both | 50% pledged margin & 50% cash |
Equity& Index Futures | Buy and Sell both (Intraday & Overnight positions) | 50% pledged margin & 50% cash |
Equity & Index Options | Sell Only(Intraday & Overnight positions) | 50% pledged margin & 50% cash |
Note: As per exchange rules, you cannot use the pledged margin for equity trades or for buying an options contract.