Ok so first of all I am completely new to pledging. Never did that and I am just evaluating how this option can benefit me.
I do investing (delivery trades) and never into trading (intraday).
Sometimes I find a drop in a scrip that I might be interested in taking delivery. But I may not have funds in my Dhan account at that time.
But I would not want to take risk of price rising again by the time I add funds.
In that case can I do the following:
- Buy and keep some SGBs in my account. say worth 5 lakh rupees.
- Pledge the shares and get “cash component” margin of around 4.5 lakhs. Keep SGBs always pledged.
- Now lets say there is a day when I want to buy some scrip. Say of 1 lakh rupees. But I dont have cash funds in my account except pledged SGBs worth 4.5 lakh rupees.
- First I place intraday order and wait for it to execute. And my pledge cash component reduces by 1 lakh.
- Once the order executes, I transfer 1 lakh rupees from my bank to Dhan account.
- Once the fund is transferred, I convert that intraday order to delivery.
- Will that work? Will pledge cash component be back to 4.5Lakh rupees? I will not unpledge SGB and let them leave pledged.
- What will be the charges in above case? And what will be interest, if any?
- Will there be daily interest charged, if my shares are pledged but I dont use them to buy anything?
I hope I am able to put and explain my question correctly.
Please do reply.
Thank you.