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[Music] in most cases traders have securities in their account but have limited cash to actually place further orders the securities you hold in your account can be in the form of stocks etfs mutual funds and government securities these securities in ones account can be pledged with the trading member to get margin against to take positions with most brokers have a list of securities that they accept as collateral and provide margin against them at zerodha we have this list which mentions all the stock where collateral is allowed so the collateral margin is provided after deducting something called a haircut so you can see the percentage of haircut over here and this means for every 100 rupees worth of stock pledge youll receive about 90 rupees in collateral so 10 rupees is deducted 10 actually is deducted the margin provided keeps changing on a daily basis based on price fluctuations in the pledge securities so make sure to check before you actually pledge we update the sheet daily