I just found out that If I have margin( not actual cash but cash collateral and non-cash collateral combined) available in my dhan account then I can buy securities using it and also buy options using it. But my balance will go negative and I understand that I will be charged interest on this. My question is : If I add money to my dhan account on the very next day, will I still be charged interest?
FYI : I bought GSECs today using margin available in my account and I will add cash tomorrow by selling my Debt ETF holdings tomorrow and pledging the GSECS to keep the margin intact
I think this can go very wrong… Huge negative balances might lead to your positions/holdings being sold their risk management team. Better add the money before 9 AM, and yes, you will still be charged overnight interest.
@explorer Yes, as @R.E.M, interest will be charged for a single day in this case. However, @R.E.M RMS will only square off positions or holdings in accordance with the predefined Risk Policy. We ensure that trading limits are allocated to clients based on risk parameters, ensuring that positions are created within the amount available for investing/trading.
In fact many traders utilize this strategy, allowing them to trade using their collateral. This is the most effective way of trading where-in you can leverage on the collateral.
Learned something today
So it means that using this method, one can create short term equity (not f&o) positions with similar interest out-go to traditional MTF methods?
@R.E.M For FNO also you can. The trading limit allows you to trade (be it any segment). However, MTM incase of F&O and Commodities is settled by CASH. For Equities there is no concept of MTM.
Where can I read more about RMS. i.e. conditions under which dhan can square-off our positions. I had shorted 10 lots of GOLDM put options and dhan had squared off one lot. I didn’t understand why? And they had also deduct charges in the name of “Call and Trade Charges”. I don’t even know how to do call and trade.
