How to use Margin Against Shares fund?

Assume client want to invest in 3 lots of NIFTY future, which require Rs 136,000. As per broker cash to collateral ration 50:50, Rs 68,000 can be used from collateral value and Rs 68,000 is required as cash in your account.

If client does not have enough cash, then either the order may not execute or the broker is going to charge interest per day for the debit balance in your account. Some brokers provide debit balance with interest and some brokers does not allow to trade.