Pledeging Etfs for Buying more etfs and stocks

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1

i have nifty etfs and i wanted to pledge to get the margin
and wants to buy same etf with that margin which i get after pledging
is this possible ?
if yes what is the charges for that means per day cost for that collateral margin , suppose for “1,00,000”?

2

Hi @Shubham188 check this video to understand pledging on Dhan - https://youtu.be/0t9eYIlUYY4?si=mSLNz1MYMxPl1bph

3

whats is the charges for this Pledging ?
Is there any interest cost on that colleteral money ?

this thing not cleared in video

4

Hi @Shubham188,

The margin pledge charges on Dhan are Rs 12.5/request/ISIN + GST equals to Rs.14.75/- and yes, we do charge an interest of 0.0438% daily on the margin utilized from collateral. Also, we have mentioned more in detail about it here.

5

@Shubham188 Assume you have Rs. 1,00,000 worth of NIFTY ETFs and you get a haircut of let us say 10% which means you get Rs. 90,000 margin. Remember this is margin and not actual cash. Incase you buy securities (even the same NIFTY ETF) with this margin, your trade will be executed but on the next day, your ledger balance will go negative by Rs. 90,0000 as during the settlement you have to pay actual cash. In this case, we as a broker pay on your behalf and charge DPC (Delayed Payment Charges). Incase you are not able to fund your debit within T+5 days, we sell off your securities to recover the debit.

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