Update: Extending Margins to more Stocks for Intraday, MTF & Pledging

Hello Traders!

We understand that as Traders it means a lot more for you to have as much lower capital requirements as possible. In our many interactions with traders, many have emphasised that having lower capital at trading, also means lower capital at risk when trades go against you.

At Dhan we have constantly evolved with time to meet your needs and exceed your expectations. Given the significant presence of proficient traders on our platform, we recognize the pivotal role that margins and leverages play in shaping their trading journey.

Over time, we have built an best-in-class experience when it comes to available margin benefits for traders including Option Buyers (https://community.dhan.co/t/full-post-margin-benefits-pledge-shares-experience-for-trading-on-dhan/3131), extended the seamless experience to Commodity Trading (https://community.dhan.co/t/commodity-trading-experience-on-dhan-simple-smooth-seamless/4957), introduced MTF or Margin Trading Facility for swing traders (https://community.dhan.co/t/introducing-margin-trading-facility-mtf-on-dhan-now-trade-with-less/4044), brought in pledge of Government Securities (https://community.dhan.co/t/live-now-you-can-pledge-government-securities-on-dhan/5062) and among many, also recently improved the discoverability of high margin Cash & Cash Equivalents (https://community.dhan.co/t/now-live-an-all-new-improved-pledge-experience-on-dhan/19855)

In our continued pursuit of enhancing your trading experience, we have now revised our stock list to provide traders with access to extending margins to more Stocks for Intraday, MTF and Pledging on Dhan:

  1. You can now get MTF on 1000+ stocks. This makes us one of the top brokers in India to extend the Margin Trading Facility to one of the highest number of stocks on its platform. You can check the updated list of stocks on which we provide MTF here.

  2. Intraday Trading is now extended from 850+ stocks to 1600+ stocks. This is almost double the number on which we used to provide intraday leverages earlier. Not just that, we have also improved the margins on many of our existing scrips so that you can make the best out of these scrips while trading in them just for the day. The updated list of MIS stocks can be viewed here.

  3. Better Pledge benefits: We have increased the pledge benefits that you can get from pledging bluechip / NIFTY 50 stocks. This will help you get more margins if you have any NIFTY 50 stocks in your portfolio and decide to use them as collateral & optimise your trading experience. To view scrips that can be pledged for collateral benefit, tap here.

With the recent updates to our stock list, we have significantly expanded the opportunities for our traders.

We invite you to explore the updated lists of stocks eligible for MTF and intraday margins, as well as those suitable for collateral benefits. Happy Trading!

Kuldeep

4 Likes

Kotak securities ka liquid etf(cash component )pr haircut 6% h aur dhan ka 10% aisa kyu?

Hi

Mtf interest is debited daily or monthly basis, as daily debit will lead to compounding and actual charges will be much higher

Hi @Anil4545 Every broking platform has its own risk policy; we prefer to go by exchange norms and by guidelines defined as per our own risk policy.

Risk decisions cannot be copy paste of one platform to other.

1 Like

@Anil4545 I just double checked on this with our team. When securities are pledged for collateral, they are with the clearing corporation, which gives an haircut of 10%, which means max margin that can be provided his 90%.

That ways, we are giving the best possible margins available. It is possible that some broking platforms may get a bit aggressive or adventurous about risk, but it’s not in our comfort zone. In such cases, the risk is on the broker (pay money from the pocket) or on the user (interest rates + additional fees or in worst cases the broker may cut your positions or liquidate some of your stocks to recover margins).

We feel that is these choices are too complicated and complex for whatever additonal value that it may get - so let’s better be at peace and ensure things run smoothly within the frameworks that defined and acceptable. Risk is to be managed, not played with :slight_smile:

Then Why niftybees which is more volatile / more risk has 6% haircut but kotak nifty Liquid ETF has 9 % haircut ? :genie:

Kotak Liquid ETF consistently shows 10L+ quantity at ₹1049.91/₹1049.93 daily, with smooth upward movement of ~₹0.20/day, yet it carries a 9% haircut. NiftyBEES, which is more volatile and can drop 5% in a flash, only has a 6% haircut.

If brokers are concerned about speed of exit, the deep liquidity in Kotak Liquid ETF should ease those concerns. It’s one of the most stable, predictable assets, so it seems the haircut model might need to reflect actual behavior, not just traditional risk assumptions.

Hey @Abhijeet_Rajgor ,

Risk teams usually assess liquidity, var etc and haircuts are a factor of many things combined. However, you have a fair point, have raised this internally to review. Thanks for sharing.

Thanks,
Pranita

1 Like


:exploding_head: That’s sum super blazing :high_voltage: user feedback implementation

(Getting 6 % haircut the next day of requesting user feedback here )

Seeing the Raised bar :beer_mug:
By Dhan

Thank you Dhan

4 Likes

We get more happy when users notice change before we share @Abhijeet_Rajgor. Thank you :pray:

3 Likes

Found another where risk management team can look up ( chart, daily movement , spread ease of exiting for broker etc )
Similar to as above liquid fund

This is govt. Bond ETF so safer as liquid

Hoping to see 6 % haircut :slight_smile:

@Pranita not tagging @ Pravin j if you may pass on :')

Hey @Abhijeet_Rajgor ,

Unfortunately, the clearing corporation haircut itself is 10% . We will not be able go to below that in this case as per policy.

Thanks,
Pranita


It’s 8 % here
@Pranita please look into it thank you

& Honestly even such panic market it didn’t move an inch look at chart since inception ( not movie;)) u can easily strech it hoping risk management team She this