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Asked a question last year

Hello Team, I have some question regarding pledging of shares. 1) Is there any interest rate on collateral margin. 2) for how much time period I can pledge my shares. 3) and can I trade in carryforward positions or positional trades in F&O with the use of collateral margin? Thank You @fyers

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Hey @Yash@199930,

  1. No, we don't charge any interest on collateral margin. In fact, we have a detailed answer121 on why you should stay away from such brokers. Kindly check out the
  2. We have not kept any restrictions on it.
  3. Yes, you can use your collateral margin to take positional trades in F&O.

Hope this clarifies!

 

Sujit Chakraborty
Active Option Writer and Long Term Investor

Fyers allows pledging of shares for free. We just need to be careful not to overtrade using collateral margin for stock options. 23-Mar-2020 is one day where FnO traders either minted money or became bankrupt due to leveraged trades with margin.