Please note that there have been a few changes in our internal policies pertaining to Cash to Collateral margins that will be in effect from 10th October 2022. The cash to collateral margins have been increased to 50-50, wherein clients must bring in cash margins of at least 50% of their total fund balance (i.e., Cash+Collateral) to hold their existing position/s or take new positions. As a result, clients are requested to note down the points below:
Clients will be able to use the collateral margins only to the extent of the available cash margins. For example, let’s say Mr. A has ₹1,00,000 worth of collateral margins and only ₹20,000 as cash margins in his trading account. As per the policy, he can utilize a total amount of ₹40,000 (20,000 collateral margins + 20,000 cash margins).
Any open position/s that doesn’t meet the 50-50 criteria will be reduced/squared off.
Clients are thereby requested to go through their fund balance and transfer the necessary cash margins to be able to utilize full collateral value. For example, if Mr. A has ₹1,00,000 worth of collateral margins and ₹1,00,000 worth of cash margin in his trading account. As per the 50-50 rule, he can utilize ₹2,00,000 (1,00,000 in collateral margins + 1,00,000 in cash margins).
For any queries, kindly contact us.