Some of the best product improvements come from simple questions asked by traders.
One question we kept hearing was, "If my pledged holdings already generate collateral margin, why can't I use it to buy options?"
It was feedback we couldn't ignore.
Until now, collateral margin from pledged holdings could be used for equity intraday trading, futures, and option selling. But if you wanted to buy options, you still needed cash in your trading account to pay the premium.
With this update, you can now use collateral margin from your pledged holdings to buy options on FYERS.
A simpler way to use your capital
When you pledge eligible stocks, ETFs, or mutual funds, they generate collateral margin. Until now, that margin supported equity intraday trading, futures, and option selling. -
With this update, it can now be used for option buying as well.
This means you no longer need to maintain separate cash just for option premiums. Instead, the collateral generated from your pledged holdings can support an even wider range of trades, while your investments continue to remain invested.
Here's what changes
Let's say you've pledged shares worth ₹10 lakh.
After the applicable haircut, you receive ₹8 lakh as collateral margin.
Earlier, if you wanted to buy NIFTY call options with a premium of ₹75,000, you still needed ₹75,000 in cash in your trading account. Even though you had ₹8 lakh of collateral margin available, it couldn't be used for option buying.
With this update, you can use your available collateral margin to buy those options, subject to applicable exchange regulations and margin requirements.
Instead of transferring additional funds or keeping cash aside for option premiums, you can use the collateral you've already have and act on trading opportunities as they arise.
Learn more about the pledging process.
Making your capital work harder
Trading opportunities don't always wait while you move funds around.
By enabling collateral margin for options buying, we're making it easier to use the capital you already have. Your pledged holdings continue to remain invested, ensuring long-term wealth.
If you've already pledged your holdings, you can start using collateral margin for option buying today. If not, you can pledge your eligible holdings through FYERS Web or the FYERS App and get started.