I have invested 60k in in a cash-component etf and 40k in a mutual fund.
I have zero cash in my account and total 92 collateral margin( 56k from cash component and 40k from non cash component as a specified above)
If I have taken a position of 90000 in equity delivery as swing trade, then for how much day I can hold the position without attracting any extra charges
Hey @Aditya_Raj, Welcome To MadeForTrade community.
If you’re using pledged collateral margin, it can result in a negative ledger which may trigger the T+5 ageing debit square-off. You need to maintain the negative ledger balance to avoid ageing based square-off. Margin interest will be charged only for the same day in Equity Delivery, while DPC interest will be applicable if the ledger remains negative. Read more here
@Aditya_Raj Just to add, you can also explore our MTF (Margin Trading Facility) which allows equity investors to take up leveraged positions for the long term, where you will pay a fraction of the position value while the broker funds the remaining amount.
In case of collateral (pledge amount), the total MTF value will be funded by us. Here are the few points that may help you manage your MTF trades effectively when you purchased it from the collateral margin.
Kindly ensure you maintain some cash every week to cover the interest charges and avoid a negative ledger balance. This will help to avoid the auto square-off of the pledged shares, as interest charges cannot be deducted from the collateral margin (cash component or non-cash component).
Just monitor your positions and maintain the shortfall amount for any MTM loss or increase in the margin requirement for your MTF position, either through additional cash or additional collateral. Read more about this here : Margin Trading Facility (MTF) at 12.49%: Trade Now, Pay Later | Dhan