What happens to stocks after pledging? Is it transferred to the broker or exchange to provide margins?
Once the shares are pledged, your holdings are sent to the exchange and the margin for the same is released by the exchange. FYERS merely credits the pledge margins into your trading account.
Check out this article for the procedure to pledge your holdings in 10 minutes using OTP.
Note: Interest of any kind will not be levied on such amounts by FYERS.
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. ...
Can I invest in stocks overnight with the collateral amount from pledging my Demat holdings?
No, You cannot buy stocks in Cash N Carry (CNC) with the collateral amount. However, you can do intraday in stocks, take overnight positions in futures (Buy and Sell), and options (Sell) with the same. Note: Clients cannot Buy options with the ...
What happens if the shares are not bought during the auction conducted by the exchange?
If the auction fails, then the exchange will close out the transaction by settling the buyer’s obligation in cash. The close-out price paid to the buyer will be the highest price of the stock from the transaction day till the auction day or 20% ...
How much time will it take to avail margins after pledging?
Once you’ve authorized the pledge request with an OTP (refer this), it will be processed within 10 minutes. However, the margin will be credited in your trading account on the next trading day. You can view the pledged margin in the My Account Portal ...
What are Exchange Traded Funds (ETF’s)?
An Exchange-Traded Fund (ETF) consists of a pool of securities similar to Mutual Funds traded on an exchange. ETFs are continually priced and can be traded between the Equity market timings, i.e., between 9:15 AM and 3:30 PM. Buying/Selling ETFs is ...