As an active trader, having immediate access to margin can make all the difference in seizing market opportunities.
We’ve already covered how effective margin via pledge can be for day traders, swing traders, and F&O traders.
Now you can pledge overnight ETFs on Dhan to get more margin for trading in all segments!
What Are Overnight ETFs?
Overnight ETFs, like Liquidcase, invest in ultra-short-term assets that typically mature within one day, such as overnight government securities or high-quality corporate debt.
These ETFs aim to provide investors with a relatively safe place to park their money, offering some returns while maintaining a high level of liquidity.
Overnight ETFs offer stability and minimal risk as their main benefit, since they are designed to avoid market volatility.
For traders, overnight ETFs are an ideal way to earn returns on idle funds while providing up to 92% margin when pledged.
What Exactly is LIQUIDCASE?
Liquidcase is an overnight ETF managed by Zerodha Fund House. It is India’s first Liquid ETF that provides the convenience of Growth NAV (Net Asset Value), making it easier to track and maintain by eliminating dividend tracking.
The Growth NAV feature also ensures that margin available against Liquid ETF after pledging increases on a daily basis irrespective of the market conditions.
Benefits of Pledging LIQUIDCASE
When you buy Liquidcase on the Dhan app, you are essentially parking your funds in a highly liquid, low-risk asset.
When you pledge these ETF units, you unlock margin that you can use for trading across all segments: Options, Futures, Cash, and Commodities.
- Earn While You Hold: Liquidcase invests in relatively safe, overnight debt instruments, allowing you to earn returns on your funds, which would otherwise remain idle.
Access to Margin: By pledging your Liquidcase ETF units, you gain access to margin. This means that instead of keeping large amounts of cash in your trading account, you can put your funds into Liquidcase and still access the capital you need for trading.
Quick and Easy: Pledging your Liquidcase units on Dhan is a seamless process. Once pledged, you can use the margin immediately for trading in equities, derivatives, or other segments as per the exchange rules.
Optimized for safety: Pledged shares remain in your demat account unless you fail to abide by your contract as per SEBI’s new streamlined regulations. Once you pledge your shares, they are locked, meaning you cannot sell them until you unpledge them with just a single click.
How Can I Pledge LIQUIDCASE?
Invest in the units of Liquidcase – Look for “LIQUIDCASE” ticker on the exchange and invest the capital to get Liquidcase units.
Go to the Money screen on the Dhan app, go to the Money section > select View Margin for Existing Holdings, choose Liquidcase and click Proceed to Pledge Shares.
The pledge request might take 24-48 hours to process. Once processed, you will have a Margin available in your account which can be utilized.
Conclusion
An overnight ETF such as Liquidcase offers you a smart way to pledge holdings while doing away with volatility.
It ensures that your pledged capital remains more or less stable while giving you more margin for trading in the same or other segments on Dhan. You can explore this new ETF by tapping here!
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