What is Pledge Shares facility?
Pledge Shares is a facility through which you can pledge your holdings and get margin for trading. With m.Stock, you can pledge stocks and ETFs and get high collateral margin of up to 87.50% instantly with low haircut.
Boost your trades with instant margin across
- Options (buying & selling)
- Futures (buying & selling)
- Equity Delivery using Pay Later (MTF)
- Intraday trading
- Investing in ETFs using Pay Later (MTF)
The Pledge Shares advantage with m.Stock
- Up to 87.50% margin
- Sell pledged shares anytime
- Margin against ETFs
- Zero pledge creation charges
- ₹0 cash trades using Pledge Shares & MTF together
- Unlimited holding period
Getting instant margin is easy!
You have
₹0 cashYour holdings
₹3,00,000Assumed haircut
20%Margin received
₹2,40,000Value of order placed
₹2,40,000
Who can avail the Pledge Shares?
Pledge Shares vs Pay Later (MTF)
Differences | Pledge Shares | Pay Later (MTF) |
---|---|---|
Purpose | Allows using existing holdings as collateral | Allows leveraging on available fund |
Collateral required | Existing shares in the Demat account | None |
Interest charges | Charged on the margin utilised | Charged on the overall funding |
Risk of charges | Higher in volatile market conditions | Based on purchased stock performance |
Avail Pledge Shares in 3 quick steps
- 1
Choose stocks to be pledged
- 2
Enter quantity to be pledged
- 3
Use margin to trade BIG


FAQs
What is Pledge Shares?
How does Pledge Shares work?
Say you want to take an intraday position worth ₹1 lakh but you only have ₹50,000 in your trading account. You need another ₹50,000 to place this order. Now assuming you have shares worth ₹70,000 in your Demat account, you can pledge them and get additional margin for trading. In this case, assuming a 20% haircut, you will get ₹56,000 as collateral margin helping you place your desired intraday order.
In which segments can I avail Pledge Shares?
Pledge Shares is available in Intraday, Futures & Options, across all segments – equity and currency. You can even use margins received under Pledge Shares and take fresh positions under Pay Later (MTF) and enjoy unlimited holding period. Know how you can trade with zero capital.
What interest rate does m.Stock charge on Pledge Shares?
How much interest is charged on Pledge Shares?
m.Stock charges 9.99% p.a. interest on Pledge Shares, which is one of the lowest in the market. So, if you take funding worth ₹100, you will pay ₹9.99 interest in a year, which is ₹0.027 in a day. To elaborate, here are 3 scenarios:
Value of existing stock portfolio | Haircut | Funding received after haircut | Interest payable (@ 9.99% p.a.) |
---|---|---|---|
₹10,000 | 10% | ₹9,000 | ₹899 |
₹1,00,000 | 15% | ₹85,000 | ₹8,492 |
₹10,00,000 | 20% | ₹8,00,000 | ₹79,920 |