Use pledging margin for intraday trades

Trading Strategies 📈
1

Executed by first trade on Dhan and bought Kotak Nifty Alpha 50 ETF. I would be pledging it on Dhan for intraday option selling.

Quick question - Can someone please confirm that to sell options intraday, we do not need cash provided we have enough margin by pledging?

2

@doubles ,

On Nifty50 ETF, 50:50 (cash: collateral) rule should be applicable.

3

50% cash requirement is for overnight trades. I can do intraday options selling with a 100% collateral margin with my current broker. Since this is a SEBI guideline, I am assuming Dhan gives the same option.

Can someone please confirm?

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4

Hi, for intraday you can use 100% pledge benefit for trading no need to maintain 50% cash and cash equivalent.

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Hi, are there any changes as on date to below statement. Is this still valid

“Hi, for intraday you can use 100% pledge benefit for trading no need to maintain 50% cash and cash equivalent.”

6

Dear @lucky10101 ,

For intraday equity or option buying, there is no requirement of 50-50 margins. However in case of futures or option selling, 50-50 margins will be required.

Thanks,
Pranita
Product @ Dhan

7

Ma’am I am still confused, request to pls clarify

For Ex : If I have HDFC Bank share worth of Rs 2,00,000/- and if say haircut is of 12.5% than after pledging I will get a collateral margin of Rs 1,75,000/-

Now,

Query 1) If I want to do Option Selling for INTRDAY and I will not be carrying out the position overnight. Will I be able to utilise the collateral margins of 1,75,000/- for option selling without need to have any extra cash in my account or I need to have 50% cash and 50% margin in my account for option selling.

Query 2) Can collateral margin be used for Option buying as after going through few videos and blogs I came to know that Option buying is not allowed on collateral margin. However as per the above reply given by Parnita ma’am it is allowed. Pls confirm the same.

8

Hey @lucky10101 ,

  1. You will be required to maintain 50% cash & 50% margins on intraday option selling as mentioned above. So in your example, you will need to maintain extra cash.

  2. While other brokers may not allow it, on Dhan we allow option buying on collateral as well. This is one of our exclusive offerings.

Happy Trading!
Pranita
Product @ Dhan

9

Thank you maam for prompt response and clarifying the query

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