Pledge margins received from pledging your holdings can be used for trading in specific segments on FYERS. Their usage depends on the segment, product type, available collateral after haircut, and applicable cash-to-collateral requirements.
You can use pledge margins for eligible intraday and derivative trades. However, pledge margins cannot be used for equity delivery trades, IPOs, NFOs, or mutual fund investments.
Segments where pledge margins can be used
- Equity Derivatives: For trading in stock futures, buying stock options, and selling or writing stock options.
- Index Derivatives: For trading in index futures, buying index options, and selling or writing index options such as NIFTY, BANKNIFTY, and FINNIFTY.
- Equity Intraday (MIS): For intraday trading in the equity segment.
- NSE Commodities: For eligible commodity derivatives traded on NSE.
- MCX Commodities: For eligible commodity derivatives traded on MCX.
Option buying is now allowed using pledge margins, subject to available margin after haircut, applicable margin requirements, and the required cash-to-collateral ratio.
Segments where pledge margins cannot be used
- Equity delivery trades
- IPO, NFO, or mutual fund investments
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.
As per the margin framework, at least 50% of the total margin requirement must be maintained in cash or cash equivalents. Collateral margin can be used for the remaining margin requirement. If the required cash component is not maintained, Late Payment Charges (LPC) may apply on the shortfall.
What if?
| Scenario | Resolution |
|---|
| You want to buy options using pledge margins | Option buying is allowed using pledge margins, subject to available collateral after haircut, applicable margin requirements, and the required cash-to-collateral ratio. |
| You have pledge margin but no cash or cash-equivalent balance | The order may be rejected or may lead to a cash margin shortfall. You must maintain the required cash component along with collateral margin as per the 50:50 margin requirement. For more details, refer to this FAQ. |
| You unpledge shares while holding open positions | You must first add equivalent funds or close your positions to avoid a margin shortfall and possible square-off. |
| The market value of pledged shares falls sharply | Your collateral value reduces after haircut, which may cause a margin shortfall. FYERS may issue a margin call or square off positions to manage the risk. |
Last updated: 08 Jun 2026
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