You might have already heard about trading with Collateral Margin .
If not, this is a technique where you can use the stocks in your demat holdings to raise free margin for daytrading in the equity and f&o segments.
Here is one classified info about these collateral margins, you didn’t know earlier.
To discourage retail daytraders from making use of this, most stock brokers make this process difficult, by making you apply for pledging, de-pledging, interest on pledging etc.
But, If you are trading through The NSE NOW platform, The Free margin for collateral is an automatic process.
The collateral Margin is automatically allotted each day on your NSE NOW platform.
Literally, you can daytrade with no cash in your trading account, while leaving your money on long term stock holding or on positional trades.
This is what the rich daytraders in India do, they invest their money on long term Equity for LTCG benefits and make use of this collateral margin facility to daytrade when good opportunities come by.
If you want to know more about this process, contact a discount broker like FINVASIA, who provides The NSE NOW trading platform for their clients.