# Collateral for positional trade

**URL:** <https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975>\
**Category:** General\
**Created:** [October 14, 2025, 2:05pm UTC](https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975 "2025-10-14T14:05:51Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![ProfDR\_A\_SRI\_SENNATH](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/profdr_a_sri_sennath/32/5180_2.png) [@ProfDR\_A\_SRI\_SENNATH](https://community.aliceblueonline.com/u/ProfDR_A_SRI_SENNATH)\
**Post date:** [October 14, 2025, 2:05pm UTC](https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975/1 "2025-10-14T14:05:52Z")

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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)?

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**Author:** ![Rakshitha\_M](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/rakshitha_m/32/3614_2.png) [@Rakshitha\_M](https://community.aliceblueonline.com/u/Rakshitha_M)\
**Post date:** [October 15, 2025, 9:56am UTC](https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975/2 "2025-10-15T09:56:03Z")

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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.

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**Author:** ![ProfDR\_A\_SRI\_SENNATH](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/profdr_a_sri_sennath/32/5180_2.png) [@ProfDR\_A\_SRI\_SENNATH](https://community.aliceblueonline.com/u/ProfDR_A_SRI_SENNATH)\
**Post date:** [October 15, 2025, 2:40pm UTC](https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975/3 "2025-10-15T14:40:51Z")

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Hi can u please explain this 👇

“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? 🤔

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<div class="post-metadata">

**Author:** ![Rakshitha\_M](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/rakshitha_m/32/3614_2.png) [@Rakshitha\_M](https://community.aliceblueonline.com/u/Rakshitha_M)\
**Post date:** [October 16, 2025, 5:33am UTC](https://community.aliceblueonline.com/t/collateral-for-positional-trade/13975/4 "2025-10-16T05:33:53Z")

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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.