Can you buy options using collateral margin on Zerodha?

Wed, 01 Jul 2026 00:00:00 +0000

Buying options using collateral margin is allowed on Zerodha, but it is not the same as spending your own cash. When you pledge shares or other approved securities, the collateral margin you receive can fund an option-buy order, provided you keep a positive cash balance. The catch is the cost: the collateral you use to pay the premium is treated by Zerodha as an overnight funded amount and carries a daily charge. This guide walks through placing such a trade, the charge that applies, and the 50:50 cash rule that governs any overnight F&O position built on collateral.

50:50 Cash Rule on WebNotes

Can you buy options using collateral margin on Zerodha?