Understanding Collateral Use for Overnight Investments with FYERS

Can I use the collateral from pledged Demat holdings for stock investments?

No, it is not permissible to use the collateral amount received from pledging your Demat holdings to purchase stocks in the Cash N Carry (CNC) segment for overnight positions. Nevertheless, you are allowed to utilise this collateral for intraday trading in stocks. Moreover, you have the option to take overnight positions in futures (both buying and selling) and sell options. It's important to note that buying options with collateral amounts is not allowed, and for this purpose, you must have the full amount available in cash.

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