Understanding Haircut in Pledged Securities

What is a Haircut and how does it impact the pledge margin?

A 'haircut' is essentially a risk-control measure. It's the difference between the market value of your securities and the value that's considered for the pledged securities. For instance, if you pledge securities valued at ₹20,00,000 and the applicable haircut is 10%, the collateral value you'll receive is ₹18,00,000. We always strive to ensure our customers are well-informed and safeguarded against market volatilities.

Find out the list of approved securities available for pledge and their applicable haircuts here.

    • Related Articles

    • How to pledge mutual fund investments to get collateral margins on FYERS?

      FYERS allows you to pledge eligible mutual fund or equity holdings to generate collateral margin, which can be used for trading in derivatives, currency, or commodity segments—without selling your investments. Steps to pledge holdings on FYERS Log in ...

    • How can I pledge mutual fund investments to get collateral margins on FYERS?

      FYERS allows you to pledge approved mutual fund units to receive collateral margin, which can be used for trading in F&O or currency derivatives. This way, you retain your investments while unlocking trading leverage. Overview of mutual fund pledging ...

    • What are the pledge charges on MTF?

      Managing MTF (Margin Trading Facility) positions involves certain nominal charges. At FYERS, you are charged for each pledge and unpledge transaction associated with your MTF trades. MTF Pledge Charges at FYERS Type of Transaction Charge per ...

    • How can I place a pledge request in FYERS?

      Pledging your stocks in FYERS allows you to receive collateral margin without selling your holdings. This can be useful for derivative trading or meeting margin requirements. Here's how you can pledge your shares securely through the FYERS platform. ...

    • Do I need to pledge/authorise my MTF holdings?

      No, manual pledge authorisation is no longer required for MTF holdings on FYERS. All eligible MTF positions are automatically pledged by the system from the backend. How MTF Authorisation Works Now Automatic Pledge: Once you buy a stock under the MTF ...