Which segments can I trade using pledge margins?
Pledge margins received from pledging your shares can be used for trading in specific segments on FYERS. However, their usage is limited to segments that allow non-cash margin, as per SEBI regulations.
Segments where pledge margins can be used
- Equity Derivatives (Futures & Option Selling only) – For trading in stock futures or selling (writing) stock options.
- Index Derivatives (Futures & Option Selling only) – For trading in index-based derivatives such as NIFTY, BANKNIFTY, and FINNIFTY.
- Equity Intraday (MIS) – For intraday trading in the equity segment.
- NSE Commodities – For commodity derivatives traded on NSE.
- MCX Commodities – For commodity derivatives traded on MCX.
Segments where pledge margins cannot be used
- Buying options (Equity or Index)
- Equity delivery (CNC) trades
- IPO, NFO, or mutual fund investments
Important Note
As per SEBI’s margin framework, at least 50% of your total margin must be in cash or cash equivalents.
If your cash-to-collateral ratio falls below this limit, Late Payment Charges (LPC) will apply on the shortfall until the cash balance is restored.
To learn how to pledge or unpledge your holdings, refer to this article. For detailed information on the cash-to-collateral ratio, refer to this FAQ.
What If?
| Scenario | Outcome |
|---|
| You use 100% pledged margin without any cash balance | Late Payment Charges (LPC) will apply on the shortfall portion until the required cash margin is maintained. |
| You unpledge shares while holding open positions | You must first add equivalent funds or close your positions to avoid margin shortfall and possible square-off. |
| The market value of pledged shares falls sharply | Your collateral value reduces, which may cause a margin shortfall. We may issue a margin call or square-off positions to cover the risk. |
Last updated: 13 Oct 2025
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