Collateral for positional trade

Just like other brokers while taking positional trades in alice blue ,we can have 50% cash/ cash equivalent and 50% non cash ( pledged stocks/Etf)?

Hi @ProfDR_A_SRI_SENNATH

Clients do not need to maintain a 50% cash component for positional trades. They only need to ensure that there is a sufficient credit balance in their account to cover the margin requirements. Also, there are no charges for the collateral unless it exceeds the collateral value.

Hi can u please explain this :backhand_index_pointing_down:

“Clients do not need to maintain a 50% cash component for positional trades. They only need to ensure that there is a sufficient credit balance in their account to cover the margin requirements”

Do you mean credit balance to meet MTM loss or margin requirement?

If u mean credit balance to meet margin requirement then u mean we should have 100% margin in cash? :thinking:

For Mark-to-Market (MTM) losses, the client’s ledger must have a credit balance. This doesn’t mean the full required margin needs to be maintained in the ledger at all times. However, there should be a minimum credit balance available. Any MTM loss incurred will be deducted from this minimum balance, ensuring that the client can cover losses without defaulting.