Margin Pledge serves as a means to amplify margin availability for F&O and Equity trading by leveraging securities like Stocks, Mutual Funds, SGBs, and ETFs from your portfolio.Upstox accepts stocks, ETFs, Mutual funds and SGBs for pledging.

For example, if a stock within your portfolio is trading at ₹100 and you decide to pledge it, you can gain a margin of ₹85 . The remaining ₹15, termed as a "haircut," represents the discrepancy between the security's market value and its value after being pledged. This haircut acts as a precautionary measure, accounting for potential market risks or uncertainties.

Important considerations:

• Regulatory guidelines dictate maintaining a 50:50 ratio between Cash and Collateral while pledging securities.
• We have introduced a provision allowing 100% collateral without obligating adherence to this ratio. A nominal interest of 0.05% per day is charged on cash margin shortages under the Basic Plan, while the Plus Plan offers a reduced rate of 0.044% on the first ₹1 lakh, after which the standard 0.05% applies.
• Collateral margin can be used for buying & selling Futures, Options buying & selling (writing) ,buying & selling Equity Intraday and Equity delivery purchases.
• You can view the list of eligible scrips for pledging in the Margin Pledge section
• You will continue to enjoy benefits from corporate actions such as bonuses, dividends, splits, and other entitlements.
• Upstox allows you to avail margin via Margin Pledge to trade in the following products:

1. Buying / Selling Futures
2. Buying / Selling Options
3. Buying / Selling Equity Intraday
4. Buying Equity Delivery

Note: Collateral margin is not available for the Commodity segment

Related Article:

• How to pledge shares(via Mobile application)?