How is the Pledge/Collateral Value calculated?
The amount available to you as collateral margins against pledged holdings is calculated based on the previous day's closing price of the concerned security, after deducting the applicable haircut.
For example:
| Particulars | Quantity/Amount |
|---|---|
| ITC shares in demat account (Pledged) | 100 shares |
| Previous day's closing price | Rs. 250 per share |
| Market value of pledged shares | Rs. 25,000 |
| Exchange stipulated haircut % for ITC | 10% |
| Haircut amount | Rs. 2,500 |
| Available collateral margins (against pledged holdings) | Rs. 22,500 (Rs. 25,000 - Rs. 2,500) |
Your collateral margin value will vary daily based on market price fluctuations of the pledged securities.Still need help? Create Ticket
