Does Zerodha provide margin on holdings, and what can I use the collateral margin for?

Yes, Zerodha allows you to obtain margins against your stock, ETF, and mutual fund holdings through a process called pledging. You can use these margins for:

Equity intraday trading
Futures buying and selling
Options buying
Options writing

You can also trade commodity futures and options 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 your cash balance on the end-of-day (EOD) funds statement.

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

The list of approved instruments that can be pledged for margins and the applicable haircut % can be found by visiting zerodha.com/approved-securities.

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