How to Pledge Shares in Zerodha? — Best Answer Updated 2021
The Process of Pledging shares in Zerodha is quite simple and user friendly. There are just few steps you need to follow to pledge your share in Zerodha. We will take you though the process How to Pledge Shares in Zerodha? However, Before that let’s check out what is pledge of shares?
What is Pledge of Shares?
Many users have shares and ETFs in their portfolios, but will have less cash margins, this is causing them missing out the trade opportunities. In these kind of cases, they will pledge their stocks/ETFs for leverage margins, which they will get after a haircut of a percentage.
The leverage margin collected from pledging can be used to trade equity intraday, futures, and options writing. At the close of every business day, the leverage margin will be measured through cost changes in the total leverage margin. They can be recheck it in Console under Portfolio> Holdings.
How they calculate the Margin for Pledged Shares?
The collateral value will be determined using the shares’ previous closing price after haircut and related to the overall margin present on Kite. The collateral margin obtained is displayed individually under the collateral heading in Kite’s Funds section.
Now let’s Check out how to pledge the shares in Zerodha?
How to Pledge Shares in Zerodha?
The pledge your shares you need to Log in to your Zerodha’s account on Kite app or Kite website. To Pledge your shares first you need to note that their will be % of Haircut will be deducted if your pledge your shares. You need to call Zerodha customer care to check out the % before pledging.
Let’s Check out the process step by step:
Process
- Enter the Console.
- Go to the Holdings section of the page. This page displays a list of shares that can be pledged.
- Click on three dots to find the option of pledge for margin as shown in the above image.
- Choose the share you want to pledge, enter the amount, and press pledge.
- CDSL sends you an email with a link to accept the pledge to your verified email address
- When you click on the link, you’ll be given the option to create an OTP. The OTP is then sent to the listed phone number and email address. To accept the pledge, submit the OTP on the CDSL page.
- Margin will be issued against the pledged equity from T+1 after the pledge is accepted.
Note
Zerodha will offer real-time margins towards pledge once the complete APIs are accessible from CDSL Which is undress right now.
Originally published at https://profitmust.com on May 1, 2021.
