Is option buying in nifty and banknifty allowed with collateral margin ?
Hey @pradeep_mandala,
Yes, pledged margin can be used for buying options in Nifty and Bank Nifty. This means you can utilize the collateral margin available in your account to engage in options trading for these indices.
For detailed information on Pledge & Unpledge, refer the FAQs at Pledge & Unpledge - Upstox Help Center
If you have any further questions or need assistance, please feel free to reach out.
@vishalchawda
I want to trade with collateral margin (100% non cash) , i will pay the interest charges for the overnight f and o positions,
This is possible right?
Hi @pradeep_mandala ,
Yes, you will be able to use a 100% collateral margin for the overnight position. However, a nominal interest rate of 0.05% per day will apply on any shortfall in cash margin, based on the 50:50 cash collateral ratio.
According to regulatory guidelines, securities pledging typically requires a 50:50 ratio between Cash and Collateral. However, starting October 2023, we have introduced a provision allowing 100% collateral without the need to maintain this ratio.
We encourage you to go through our help center articles for more details on pledge margins, visit uptx.to/marpleg and find FAQs at Pledge & Unpledge - Upstox Help Center. Our RMS policy is available at https://uptx.to/RMS_Policy. This will help you in taking informed decisions.
If you have any further questions, feel free to contact us.