It is now easy as never before to pledge stocks for margin purpose. Just place an online pledge request to add to your collateral and avail more funding.
Watch our detailed video here to know how to add it online.
How does pledging stocks help?
You may pledge stocks to avail short term and long term funding. Short term funding includes funding of equity cash stocks for a maximum of 7 days and funding of derivative positions as well (except MtoM losses which needs to be settled on a daily basis). The long term funding is called as MTF (Margin Trade Funding).
As seen in the video, there are two options available to pledge stocks. One is the Margin Pledge funding and the other is the MTF Collateral pledge request. To avail short term funding or derivative funding, use the margin pledge option and to avail funding under MTF use MTF Collateral pledge option. To know more about this read our detailed blog here
Points to note while pledging stocks online
- All online pledge requests are to be made before 5 pm
- All pledge requests are to be confirmed before 8 pm on the same day
- Pledge requests of clients who are enabled for MTF segment will only be accepted.
- Requests made beyond 5 pm are not valid and will be removed at the end of the day
- Requests made on Saturdays and Sundays will be not be accepted
- You get 50% of Value of stocks pledged as collateral benefit for normal equity and F&O trading,
- For MTF trading, value of pledged stocks after haircut will be provided as collateral benefit.
In case of queries, do write to us at email@example.com..