Can I use the full margin of cash components?

Can I use the full margin of cash components?

The collateral margin received by pledging cash component securities can be used fully towards any margin requirement for your open positions. There is no requirement to maintain cash separately if the margin requirement is covered by collateral from cash component securities.

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    • Can I still use non-cash components for margin?

      Yes, you can still use non-cash collateral such as stocks and securities for margin. However, a minimum of 50% of the margin must be maintained in the form of cash component.

    • What are cash components?

      Cash component is the margin which is considered as a cash or cash equivalent. Examples: Cash transferred from your Bank LIQUIDBEES ( NIP IND ETF LIQUID BEES ) ICICILIQ ( ICICIPRAMC - ICICILIQ ) LICNETFGSC ( LICNAMC - LICNMFET ) LIQUIDETF (DSPAMC - ...

    • What are non-cash components?

      Non-cash component is the margin which is provided by pledging securities as collateral. All the Equity Stocks ( eg: Reliance, TCS) and Stock/commodity based ETF (eg: NIFTYBEES, GOLDBEES).

    • What is Margin and Margin Shortfall?

      Margin refers to the amount of money borrowed from a broker to purchase an investment. It's essentially a loan from your brokerage firm, and it allows you to buy more shares than you could with just your available funds. This practice is known as ...

    • Do I need to maintain 50% ratio in the form of cash or cash equivalent collateral?

      Yes. You are required to maintain a minimum of 50% of the margin in the form of cash component, along with other non-cash component collateral such as stocks, securities, etc.