Hey I want to ask a question to each and everyone for use pledged Margin for trade in option if a person took position for overnight in options while using pledge amount so we need to maintain ratio of 50 enter in cash or cash equivalent I was ask you a question if a person pledge only cash equivalent then it required to maintain 50% in cash for the position which taken by use Margin of cash equivalent while pledging
Hi @Devil-Vaas, welcome to MadeForTrade,
The collateral margin from pledging your delivery holdings can be used across all segments (equity, F&O, currency, and MCX). However, Clearing Corporation (CC) requires brokers to maintain a 50:50 margin ratio half in cash/cash equivalents and half in non-cash (approved securities). Read more here and here. If the collateral is cash component then no extra cash required unless there is a MTM loss.
Hi @Siyanka is MTM applicable for everyday if the ledger balance goes negative aur after the settlement of trade
Hi @Devil-Vaas,
If you buy options, equity delivery, or have a daily MTM loss on futures or negative due to an increase in the margin, your ledger balance goes negative, which you need to add within 4 days. On the 5th working day, our system starts auto square-off at 11:00 AM, called an “Ageing debit”. Read more about this here.