Zerodha
LIQUIDCASE
Collateral
LIQUIDCASE as collateral on Zerodha
LIQUIDCASE ETF can be pledged as collateral on Zerodha to get trading margin while keeping the idle cash earning 1-day overnight returns.
How it works
- Buy LIQUIDCASE on Kite with idle cash.
- Pledge units via Zerodha Console.
- Get margin (after haircut) for F&O / equity intraday.
- Earn LIQUIDCASE NAV growth daily.
- Unpledge when no longer needed.
Haircut
| ETF | Haircut |
|---|---|
| LIQUIDCASE | ~10% (subject to SEBI category caps) |
| Equity ETFs | 15-25% |
| Debt ETFs | 10-15% |
Margin = LIQUIDCASE value x (1 - haircut). Rs 1 lakh pledge gives ~Rs 90,000 margin.
Why this is attractive
- Dual benefit: Earn overnight return AND get trading margin.
- No interest on margin (unlike margin loans).
- No need to sell to free up cash.
Process
Same as bond pledge; see Pledge bonds on Zerodha .
Risk
If trading position causes loss exceeding free cash, pledged LIQUIDCASE units may be liquidated to cover. The “collateral” role isn’t risk-free.
See also
- Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE)
- Park idle cash in LIQUIDCASE
- LIQUIDCASE physical delivery rule
- Pledge bonds on Zerodha
- Zerodha Fund House overview
- Invest in Zerodha Fund House via Coin
- Zerodha Overnight Fund
- Zerodha Gold ETF
- Zerodha Silver ETF
- Zerodha Nifty LargeMidcap 250 Index Fund
- Zerodha Nifty 100 Index Fund
- Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund
- Zerodha Multi Asset Passive FoF
- How Zerodha AMC differs from regular AMCs
- Zerodha AMC philosophy (passive-only)
- Vishal Jain (Zerodha AMC CEO)
- Zerodha Asset Management Company structure
- Margin pledge in India
- F&O margin India
- Collateral margin
- SPAN margin
- Exposure margin
- Zerodha
- Zerodha Console
- Kite (Zerodha)
- CDSL
- SEBI
External references
References
- SEBI, Margin pledge framework, sebi.gov.in.
- Zerodha, LIQUIDCASE collateral mechanics, support.zerodha.com.