General

Do I need cash if I am using Shares as Margin (SAM) for my commodity position?

Yes, While you can use pledged shares for up to 100% of your initial margin, you still need liquid cash in your commodity allocation for:

MTM (Mark-to-Market) Losses: Daily losses on futures must be settled in cash.

Option Premiums: When buying options, the net premium must be available as cash before the next trading day.

*Risk Note: If cash allocation is not available, ICICI Direct may sell your pledged shares to meet the obligation, which could lead to margin shortfalls and automatic square-offs of your other trades.