If I have zero cash balance in my trading account but have shares in my portfolio, how can I trade?
You can trade even without any cash in your account. First you need to make sure that you have MarginPlus activated, then you can pledge the stocks in your demat account. Pledging will allow you to use collateral margin for your trades. Usually you cannot trade using only collateral margin, however MarginPlus allows you to trade entirely using collateral against a nominal interest rate!
To pledge your stocks for collateral benefit, you need to follow the below steps:
- Go to the 'HOLDINGS' page on the 'BOOK' section in your 5paisa Mobile app.
- Click on the Pledge/Unpledge button on the bottom right side of your screen, after which you can select the shares you wish to pledge and click on the 'Submit Request' button
- A link for OTP authentication will be generated and sent on your registered Mobile Number and registered Email ID from CDSL (Depository Participant).
- On clicking the link, you will be redirected to the CDSL webpage and prompted to enter your PAN or BOID (Your Demat account number. You can check your demat account number in the Profile section of App and web).
- Once the valid PAN / BOID are entered, a list of all transactions pending for authentication will be displayed to you. After that, OTP will be generated and sent on registered Mobile Number and registered Email ID of the client. OTP will remain valid for 15 minutes only.
- You will have to then authenticate the same by entering the OTP after which the pledge shall be marked in favour of 5Paisa.
- Once your request is received the margin benefit will be given to you on the same day.
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