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    Shares As Margin

    Can I utilize Shares as margin limit for my Option Buy (Call/put) open position?

    If you hold an open Options Buy position (Call and/or Put), here’s what may happen:

    1. For intraday position: You may utilise the SAM limit and hold an open buy option position for your intraday.

    2. For overnight position: In case you bought Options with Shares as Margin limit and have carried forward the buy position, you may get a payin obligation which is required to be paid in cash . If your Cash limits are not enough to meet the Margin requirements, your existing option position will be squared off to recover the shortfall amount. For e.g.: if you bought Options with SAM amounting ₹1,00,000 and did not square off in Intraday. Assuming your Cash limits are ₹50,000 then you shall get a pay in obligation for the shortage amount i.e. ₹50,000 (1,00,000-50,000).

    Essentially, when you buy an options contract, you are required to pay only the premium amount upfront as cash. However, if you are unable to meet any subsequent margin/premium obligations arising from that position, the trading system can automatically square off (sell) those bought option positions to recover the deficit margin amount owed to the exchange.

    This is done to ensure you maintain adequate margins as per the exchange requirements for the options positions you hold. The system takes this action to prevent any shortfall of margins payable to the exchange for the open derivative positions in your account.

    So in summary, if your free available margin is insufficient for the premium/obligation due, the trading platform can sell off your existing bought call and/or put option contracts to make up for the required margin amount payable. This is an automated risk management measure.

    What is Shares as Margin facility? Why do I need Shares as Margin facility? How does Shares as Margin work? What forms of Margin are acceptable for taking F&O and Equity positions? When should cash be made available for settlement dues? What happens if cash is not made available for any settlement dues? How do I revoke securities pledged as Margin? After revocation of pledge, by how much do limits decrease? What happens to the securities on revocation of pledge? How do I deposit Securities as Margin? Can I deposit any security lying in my demat account as Margin? On depositing securities as margin, when do limits become available there against? After depositing securities as margin, by how much do limits increase? Where can I view all securities deposited as margin? What does "Pledge & Allocate to Equity", "Pledge & Allocate to F&O" on the 'Pledge & Create Limit' page mean? Why the limit arising out of securities deposited as margin changes every day and sometimes during the day also? What happens to the securities pledged as margin? How does ICICI Securities go about selling my pledged securities in case I do not make cash available for any settlement dues? For a given shortfall which is less than potential sale proceeds of the entire securities deposited as margin, how does ICICI Securities determine which of the deposited securities to sell and how much ? Can I also sell securities pledged as margin for eg. In case prices of the securities are going up? Are there any separate charges for the above transactions? Can I place revocation and invocation of pledge requests simultaneously for the same scrip on the same date? Can I place multiple revocation of pledge requests against the same scrip on same date? How the delivery towards sell of SAM (Shares As Margin) Funded shares will be effected? How does "Pledge & Allocate to NWB", on the 'Pledge & Create Limit' page works on 'ICICIdirect - Stock, F&O, MF' & 'Traderacer'? If I unpledge a security, how long does it take to get unpledged so I can sell the shares? How do I pledge shares as margin for trading in futures on ICICI Direct? Is there any interest charged under iVALUE for using Shares as Margin in the Derivative segment? What happens if my pledged shares are not utilized for shares as margin? Will I be informed before my shares are being unpledged? Can I take any position using Shares as margin in F&O? What if I have open positions in Equity / F&O / Commodity while the system tries to unpledge my shares? What if I need to pledge the same shares again which got unpledged earlier due to periodic unpledging?
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