Zerodha pledge haircut explained

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

Overview

The pledge haircut at Zerodha is a percentage deduction from a pledged security’s value to arrive at the collateral margin it generates, and it is a risk buffer, not a fee: no money leaves your account, and the pledged security keeps its full market value. When a Zerodha client pledges holdings for futures and options margin, the trading margin credited is always less than the market value of those holdings, and the gap is the haircut.

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Zerodha pledge haircut explained

Overview