| Why Pledge? |
| Users with limited cash margins can leverage their holdings in stocks, ETFs, and mutual funds. |
| This allows them to avoid missing trading opportunities on CubePlus. |
| Pledging Process: |
| Users pledge shares/ETFs, undergoing a % deduction known as a haircut. |
| The resultant collateral margins are available for Equity Intraday trading and futures & options writing (equity and currency F&O). |
| Usage and Limitations: |
| Collateral margins are subject to adjustment for price variations at the end of each trading day. |
| They cannot be used for trading commodity futures and options. |
| Clearing Negative Balances: |
| Collateral margins remain inactive until negative balances are cleared. |
| Calculation and Addition: |
| Collateral amount is calculated from the previous closing price of securities after a haircut. |
| This amount is added to the total margin available on CubePlus. |
| Cash Requirement for F&O: |
| Exchanges mandate that 50% of the margin for F&O positions must be in cash or cash equivalent collateral. |
| The remaining 50% can be in non-cash collateral margin. |
| Delayed Payment Charge: |
| If there’s a shortfall in the cash margin requirement for overnight positions and it’s funded by non-cash collateral, a delayed payment charge of 0.035% per day applies on the cash margin shortfall. |
Start investing now!
Account opening in less than 5 minutes steps
