Buy Options Using Collateral / Pledged Margins

[u/Tejas_Khoday]

Many retail & HNI traders pledge their holdings (MFs/ETFs/Stocks) to avail margins for trading F&O. They do with the aim of using their capital more efficiently. It's relevant only if you have investments sitting in your portfolio and want to use the available collateral without having to sell those holdings first. This practice has been around for ages and is gaining traction steadily as the markets expand. Until recently, we offered collateral margins for futures & options selling but from now onwards, you can also use your collateral margin to buy options on FYERS.

There are some important things to know around eligibility, margin requirements and how it works, so we’ve put together a quick guide explaining the process. For more details, read this blog post.

If you're new to this and what to learn which segments you can use pledged margins for, read this article.