Hello friends,
Please help me understand these following queries:
1. Even if Liquidbees is deemed as liquid cash by exchanges, despite of holding it in my demat, do I need to put 50% separate cash margin w.r.t. 50% collateral margin in order to meet a position's required margin after the specified haircut? Does the same rule apply when I am pledging Liquidbees itself?
2. In which segments utilization of collateral margin is allowed?
3. In what all scenarios, interest rate and at what rate is charged for using this collateral margin?
4. Let's say summing my cash and collateral margin I have Rs.1 Lac where Rs.50,000 is cash and the other Rs.50,000 is collateral margin which I got after pledging 100 shares of XYZ. Now I incurr a loss of Rs.10,000 MTM in a position and I square-off. After that I unpledge too. What will happen to my cash margin, collateral margin and to the quantity of XYZ shares that I held in my demat originally used for pledging?
5. Is the remaining 50% of collateral margin always going to sit idle?
6. What is the time taken for the amount to show-up as collateral margin?
Thank you very much for your time.
Please help me understand these following queries:
1. Even if Liquidbees is deemed as liquid cash by exchanges, despite of holding it in my demat, do I need to put 50% separate cash margin w.r.t. 50% collateral margin in order to meet a position's required margin after the specified haircut? Does the same rule apply when I am pledging Liquidbees itself?
2. In which segments utilization of collateral margin is allowed?
3. In what all scenarios, interest rate and at what rate is charged for using this collateral margin?
4. Let's say summing my cash and collateral margin I have Rs.1 Lac where Rs.50,000 is cash and the other Rs.50,000 is collateral margin which I got after pledging 100 shares of XYZ. Now I incurr a loss of Rs.10,000 MTM in a position and I square-off. After that I unpledge too. What will happen to my cash margin, collateral margin and to the quantity of XYZ shares that I held in my demat originally used for pledging?
5. Is the remaining 50% of collateral margin always going to sit idle?
6. What is the time taken for the amount to show-up as collateral margin?
Thank you very much for your time.
