Does Zerodha provide margin on holdings, and what can the collateral margin be used for?

Zerodha allows you to obtain margins against your stock, ETF, and mutual fund holdings through a process called pledging. These margins can be used for:

• Equity intraday trading
• Futures buying and selling
• Options buying (equity, commodity and currency F&O)
• Options writing (equity, commodity and currency F&O)

Commodity futures and options can also be traded using the single ledger facility. In the event of an intraday realised obligation, the collateral margin, if available, will be considered, and the obligation will be deducted from the cash balance on the end-of-day (EOD) funds statement. To learn more about pledging and how it works, see What is pledging, and how does it work?

Did you know? The clearing corporation imposes a limit on the number of securities that can be pledged per member. Holdings cannot be pledged if the overall maximum pledge limit has been reached for the stock/ETF.