Cash equivalent margin used for options buying

Product Feedback 🗣️ Margin Feedback ⚖️📊
1

Can I use cash equivalent fund pledged margin for options buying.

Let say I have 10L cash equivalent margin in my account and I want to buy 9 L worth of nifty options and carry overnight for more than 10 days. Is this allowed without any DPC charges and ageing square off

2

@Selva1 Read here.

3

Short answer to your question : NO

read more in detail here : Risk Management Policy | Dhan

4

I see above doc only asks to maintain 50:50 margin. 50% cash or cash equivalent and 50% non-cash. But in my case I already have more than 50% cash equivalent. Can’t use it for options buying and hold it more than 10 days.

Policy

Below transaction require minimum 50% cash or cash equivalent:

Trading Activty Fund Requirement

Equity Delivery 50% cash/ cash Equivalent

Option Buy / Sell 50% cash/ cash Equivalent :white_check_mark:

Future Buy / Sell 50% cash/ cash Equivalent

5

Option and equity buying mein you will get debit in ledger so cannot hold more than 7 days in any scenario as you have placed order using cash collateral

Above rules works for option selling and futures position where you do not get debit in ledger