PROSTOCKS COLLATERAL PRO
Collateral margin, also known as margin against shares, refers to the practice of using your securities or financial assets as collateral to secure margin limits for taking Equity Intra-day position, Positional as well as intraday trades in futures and Options Segment.
ProStocks' Collateral Pro enables leveraged trading, where investors can increase the potential returns on their investments. By taking margin limits against their securities, they can amplify their trading positions, potentially magnifying gains (and losses) during market fluctuations.
Collateral Pro gives you the freedom to trade against your long-term investments holdings - Stocks, ETFs and Government Bonds as trading balance without selling them.
You need not have 100% cash in your Trading Account to meet the Exchange SPAN & Exposure Margins. Stocks pledged under the Collateral Pro facility can be used for Margins.
Illustration: Say you wish to go long 1 Lot of NIFTY, & the margin required to initiate the position with any Product type is Rs.60000. Currently you would need to have the entire Rs.60,000 in your ProStocks Trading Account as a cash balance.
With Collateral Pro, even if your ProStocks Trading Account balance is 30,000, you can initiate this position if the value of your pledged shares exceeds Rs.30,000.