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F&O
Asked a question 6 months ago

If I write covered call and write a call against it ..I am ready to pledge that whole lot I have in demat holding --do I still have to maintain full 50:50 margin or I get benefit of pledged holding of whole lot ?

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The reason you're asked to maintain a portion in cash is to be able to meet MTM obligations without liquidating your collateral. If we allow you to pledge and carry positions without cash margins, we will have to square off your collaterals to make obligation payments to the exchange. Maintaining cash margins alongside helps prevent the liquidation of collateral to meet such obligations if and when they do occur. 

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