What is Collateral margin and the process of getting collateral margin?
A collateral amount is a form of loan against shares offered by a broker to their clients for trading in stock and shares. It is a form of an additional value-added service provided by a few brokers in India, and not all brokers offer this additional service due to the risk associated with it. Simply put, it provides shares in your Demat account as collateral to increase your trading limits.
Infinn provides a collateral margin facility. You can pledge your shares holdings, ETF, and Mutual funds to get the collateral margin.
You cannot use collateral margin for purchasing equity delivery and options buying.
For getting the collateral margin, 50% of the margin must be compulsorily available in cash or cash equivalent collateral. The ratio of cash margin & collateral margin should be 50:50.
Charges for pledging and unpledging are Rs 40 + GST per script.