How much collateral will I get after pledging the stocks? : Alice Blue Financial Services Pvt Ltd

How much collateral will I get after pledging the stocks? Print

Created by: FAQ .

Modified on: Sat, 17 Sep, 2022 at 5:08 PM

Collateral value depends on the “Value at Risk (VaR IN %)”.
Suppose you want to pledge 100 Quantity of Reliance Industries Limited Shares at Rs. 2085/- and the VaR IN % is 18.70 %.
The amount of Rs. 389.90 (Rs. 2085 * 18.70 %) will be blocked.
The remaining amount i.e. Rs. 1695.1 Per Share (Rs. 2085 – Rs. 389.90) will be available as collateral margin.
So if you want to pledge 100 Quantity of Reliance Industries Limited Shares, you will get a collateral margin of Rs. 169510 (100*1695.1).

Here’s how you can check the VaR IN % of any stock:

Visit nseindia.com , type the name of the company in the search bar and hit enter.
Scroll down to the ‘Market Depth – Order Book’ Section and you will be able to find VaR IN % of the stock. Check out the below image for your reference:

Faq is the author of this solution article.

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How much collateral will I get after pledging the stocks? Print