Does FYERS provide collateral margin against holdings/securities?

Does FYERS provide collateral margin against holdings/securities?

Yes, we do provide collateral margin against your holdings i.e. stocks, ETFs and MFs. You can pledge your holdings for collateral margins, which will be credited into your trading account after a deduction of a certain percentage or haircut.  Clients can trade with the margin received from pledging in Equity Intraday, Futures, and Options (Selling) segments.

Fyers is one of the very few brokerages that allowed the clients to use the entire collateral amount for taking positions. However, clients are recommended to maintain a cash balance of 20% to meet their Mark to Market (MTM) requirements.

For Instance, Client ‘X’ has pledged ₹1,00,000 worth of holdings for additional leverage and has a cash balance of ₹50,000. Assuming that the applicable haircut is 10%, the exchange will release a margin of ₹90,000 [i.e., 100000 – (100000*10%)] after the deduction of such haircut. Mr. X can take positions using the whole ₹1,40,000 (90,000+50,000) as he is maintaining the cash in excess of 20%.

Using the above example, let’s say Mr. X had a cash balance of ₹10,000 and he wishes to take positions worth ₹1,00,000. In this case, Mr. X can utilize the entire margin of ₹1,00,000 (90,000+10,000). However, it is recommended for him to maintain a 20% cash of ₹20,000 (1,00,000*20%) to meet the Mark to Market (MTM) needs. Therefore, Mr. X has a margin of ₹10,000 and is required to add an additional margin of ₹10,000.

Important points to be noted:

  1. The stocks bought today will be eligible only on the T+3 days. For instance, stocks bought on Friday will be eligible to pledge on Wednesday. 
  2. You’ll need to place a pledge request at pledge.fyers.in and authorize the pledge using OTP. Check out the step-by-step procedure to authorize the pledge in this article.
  3. Check out the applicable Haircut for Approved Securities and Mutual Funds here.

Charges:

The cost of pledge/unpledge is ₹0 (w.e.f. 1st March 2021)


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