Liquid Funds on WebNotes

Can you pledge bank FDs for margin on Zerodha?

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

Overview

If you keep an emergency corpus in a bank fixed deposit and trade on the side, it is natural to ask whether that FD can double as trading collateral on Zerodha . The answer is no. Bank fixed deposits cannot be pledged for margin, and the same applies to bank guarantees and to the FDs offered through Coin. Pledging on Zerodha works only with securities that sit in a demat account and appear on an approved list, and a bank deposit is neither.

Margin on liquid funds by pledging on Zerodha

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

Overview

Pledging liquid funds on Zerodha turns cash you have parked in a liquid or overnight debt fund into collateral margin for futures and options, without your having to sell the fund or lose its return. The key advantage over pledging ordinary shares is that liquid funds are treated as cash-equivalent collateral, so the margin they generate is usable in full and, crucially, counts toward the 50% cash portion that Zerodha requires for every overnight F&O position.