Margin against shares allows traders to pledge the securities in Demat account to get additional cash leverage for trading in Equity intraday, Future, and Options writing.
The margin on stocks from pledging i.e collateral margin is very used by frequent traders. A list of eligible share is provided by the broker. This list also includes information like 'for every Rs 100 worth of stock pledged, you'll receive a collateral margin of Rs XYZ (i.e. Rs 82)' and haircut %.
There is a cost of pledging i.e. Zerodha charge is Rs 60 + GST per pledge request. There is no cost for un-pledging.
A small number of stockbrokers allow pledging shares as collateral. Below is the list:
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