Why does the collateral margin decrease when holdings are sold?

Modified on Mon, 26 May, 2025 at 12:21 PM

When you sell securities that are also pledged, the collateral margin reduces for CNC orders because:

The system prioritizes pledged shares for selling, even if you intended to sell free holdings.

This temporarily reduces your collateral margin.

At end of day (EOD), quantities are debited from free holdings, and your collateral margin is restored the next day.

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