What is Pledge Shares facility?
Pledge Shares is a facility through which you can pledge your holdings and get margin for trading. With m.Stock, you can pledge stocks and ETFs and get high collateral margin of up to 80% instantly with low haircut.
Boost your trades with instant margin across
- Options Selling
- Futures (buying & selling)
- Equity Delivery using Pay Later (MTF)
- Intraday trading
- Investing in ETFs using Pay Later (MTF)
The Pledge Shares advantage with m.Stock
- Up to 80% margin
- Sell pledged shares anytime
- Margin against ETFs
- Zero pledge creation charges
- ₹0 cash trades using Pledge Shares & MTF together
- Unlimited holding period
Getting instant margin is easy!
You have
₹0 cashYour holdings
₹3,00,000Assumed haircut
20%Margin received
₹2,40,000Value of order placed
₹2,40,000
Who can avail the Pledge Shares?
Pledge Shares vs Pay Later (MTF)
Differences | Pledge Shares | Pay Later (MTF) |
---|---|---|
Purpose | Allows using existing holdings as collateral | Allows leveraging on available fund |
Collateral required | Existing shares in the Demat account | None |
Interest charges | Charged on the margin utilised | Charged on the overall funding |
Risk of charges | Higher in volatile market conditions | Based on purchased stock performance |
Avail Pledge Shares in 3 quick steps
- 1
Choose stocks to be pledged
- 2
Enter quantity to be pledged
- 3
Use margin to trade BIG
FAQs
What is Pledge Shares?
How does Pledge Shares work?
Say you want to take an intraday position worth ₹1 lakh but you only have ₹50,000 in your trading account. You need another ₹50,000 to place this order. Now assuming you have shares worth ₹70,000 in your Demat account, you can pledge them and get additional margin for trading. In this case, assuming a 20% haircut, you will get ₹56,000 as collateral margin helping you place your desired intraday order.
In which segments can I avail Pledge Shares?
What interest rate does m.Stock charge on Pledge Shares?
How much interest is charged on Pledge Shares?
m.Stock charges 9.99% p.a. interest on Pledge Shares, which is one of the lowest in the market. So, if you take funding worth ₹100, you will pay ₹9.99 interest in a year, which is ₹0.027 in a day. To elaborate, here are 3 scenarios:
Value of existing stock portfolio | Haircut | Funding received after haircut | Interest payable (@ 9.99% p.a.) |
---|---|---|---|
₹10,000 | 10% | ₹9,000 | ₹899 |
₹1,00,000 | 15% | ₹85,000 | ₹8,492 |
₹10,00,000 | 20% | ₹8,00,000 | ₹79,920 |