Pledge (37)

How is the pledged value/margin calculated?

The margin you receive from pledging depends on two factors:

1. Price Used

The pledged value is based on the LOWER of:

• Last Traded Price (LTP) 

• Previous day's closing price

This conservative approach protects against intraday volatility.

2. Haircut Percentage

Each stock has a specific haircut percentage. The formula is:

Margin = min(LTP, Previous Close) × (1 - Haircut%) × Quantity

Example

Stock: XYZ Ltd, Quantity: 100 shares

• LTP: ₹500

• Previous Close: ₹480

• Haircut: 25%

Margin = min(500, 480) × (1 - 0.25) × 100 = 480 × 0.75 × 100 = ₹36,000