Full post: Margin Benefits & Pledge Shares Experience for Trading on Dhan

Quick post on Pledge & Un-pledge Experience on Dhan

I recently did a small post on how we have built and enhanced Iceberg Orders based on feedback & usage from our users. It’s weekend, and I have some time today so thought let me write one in detail about Pledge & Margin Benefits on Dhan.

We introduced Pledge Shares for Margin Benefit a few months back in February end. We started Dhan Meet & Greet events to interact with traders across India, till date we have met over 3000+ traders - and one feature that many traders were overwhelmed by was our capabilities and feature benefits of - Pledge Shares for Margin Benefits on Dhan.

Many large traders find these super-useful and I should have done this post a long time back, but never too late. So here it goes:

Let me first share about Usage of Margin Benefit from Pledge Shares on Dhan:

  • Margin Benefit on Dhan is available for Options Buying (yes, on buying too) as well as Options Selling
  • Margin Benefit is available across all exchanges: BSE, NSE & MCX
  • Margin Benefit is available across all segments: Options, Futures, Cash, Currency & Commodities
  • Margin Benefit is available across all order types: Market, Limit, Trigger, Bracket, Cover, Iceberg, etc
  • Margin Benefit is available on both order legs: Buy or Sell

Now, about Pledge & Un-plegde features & coverage

  • Dhan provides Margin Benefit on Pledge Shares across 1450+ Stocks. We have been told this is very extensive coverage.
  • It’s Instant. Pledge on Dhan is instant, easy and fast. In just 15 minutes, you get the Margin Benefit that is promised.
  • Unpledge is instant, but we process the requests over the weekend to ensure you are able to take advantage of pledge benefits if a trading opportunity comes up.
  • Pledge Stocks, when sold are unpledged instantly and in the sell flow. There is no need to first unpledge, and then sell them.

User Experience for Traders:

  • Only on Dhan, as a trader you can view the expected Pledge Benefit on the entire portfolio in Real-time. When we say real-time, we encourage you to see it yourself real-time when markets are live.
  • Your pledge stocks always stay in your Portfolio Holdings. Unlike many platforms, we do not reduce pledge stocks from your portfolio - they appear at all times in your portfolio so that you know the real value of your portfolio holdings at all times.
  • Exactly the same for unpledge, many platforms you have to unpledge stocks and then later they appear in the portfolio after a day or two. Not on Dhan, your stocks are always in your portfolio.
  • You can instantly pledge your entire portfolio, no need to select each one and then pledge them individually.
  • Same for unpledge, you can unpledge entire holdings together in a single request.
  • On every scrip page where Margin Benefit against pledge is available, as a trader you can see the margin benefit provided (in real-time) on the Margins view of the Scrips / Stocks.

Hope this is helpful. Dhan is built as trading / investing experience - so there are many small and nifty features that are available for Pledge & Unpledge as well but we would like you to experience it first hand.

Thank you & Enjoy your weekend,
pj

10 Likes

Dear Mr.pravin ji

Firstly congratulations for building a good trading platform from the scratch. You & your team a doing a job. Surely you are trying to change the entire Indian broking industry. Keep it up.

Now coming to the point. I am a index options intraday buyer. Mostly i won’t carry overnight positions in options.I am thinking to Pledge to get the colletral margin but before that i am having a lot of confusion which i am listing it below.

  1. Can i use the colletral margin for buying index options for intraday or not ?

2.if i get the colletral margin for options intraday buying, then 50 % cash & 50 % non-cash equivalent also applies for intraday also or only for overnight positions.

3.G-Sec colletral can be used to buy options for intraday or not ?

  1. Whether G-sec is considered as non - cash component it cash component Please kindly provide a detail clarity on my doubts @PravinJ

Hi @Narine, Welcome to Dhan - we are glad to have you here.

Answering your questions quickly…

  1. Yes, you can use collateral margin for intraday and carryforward
  2. Yes, it is considered for both. 50-50% has to be maintained.
  3. Yes, G-sec can be used to buy options.
  4. Not yet, but we will introduced this soon. We are working on this, already work in progress. When it is goes live, we will publish this.

@PravinJ thanks for the detailed description on pledging. I have a query regarding pleding/unpledging charges.
E.g. I have 100 stocks of ABC company

  1. Pledge 100 stocks on Day 1
  2. Unpledge 20 stocks on Day 10
  3. Unpledge 50 stocks on Day 20
  4. Unpledge 30 stocks on Day 30

What would be the total charges ?

Thanks !

Hi @smitnk, you will be able to see detailed charges on MTF on the MTF Funding Estimator that is available on the order window of MTF.

For your specific example, the charges will be: MTF Interest Rate + Pledge + Unpledge charges + DP Sell charges.

MTF Interest:
This will be charged for days for which funds are utilised. Dhan continues to offer 1 day interest free, that helps users taking overnight positions.

Pledge + Unpledge:
It is INR 12.5 per request. I think Dhan charges possibly lowest in industry, have seen brokers charging INR 25 to 30 per request.

DP Charges:
Every time to sell from holdings, MTF is also in your portfolio holdings. It is INR 12.5 per request.

Rest all are standard charges like Exchange Transaction, SEBI fees, DP Charges, stamp-duty, etc. Do check on Funding Estimator for specific ones.

1 Like

I have a doubt about , Pledging of shares…

  1. what is interest rate for pledged available fund? When it will get charged? As far as funds is available in account or while trade is on?

  2. how will loss get covered? If I have 20,000Rs as pledged fund amount in my account on which if I made 500Rs loss and I didn’t have any cash balance in my account… Then at that time , how will my loss will be recovered?

  3. is there any delayed fee regarding to that?

  4. and last one… Will I get dividend of share I bought from pledged fund?

Can we use pledge shares and use margin for stock delivery. If yes then how it works. Can you please explan.
Thank you

@Sonali24 you can do this but your account will go in debit. Once your account is in debit, on T+5 days your account will go into ageing profile. Instead you can use MTF - https://youtu.be/6maK-HKzSXc?si=kwFDqgP0RYrXzIVw

NYKA is Showing up in the list , though all the shares are already pledged.
Can you have a look please.

Hey @pavz

In your portfolio there are a total of 46 shares of Nykaa, of which 23 are pledged. Hence, the other 23 are visible in this list. Hope this clarification helps.

Additionally, we urge you to write to help@dhan.co for any queries. Community is not our official customer support channel.

Thanks,
Trisha
Product @ Dhan

1 Like

OK thanks for the clarification, will do