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A Stock Pledge is the transfer of stocks against a debt. It is an agreement. The debtor pledges the stocks as an asset against the amount of money taken from a lender and promises to return the amount. The debtor pledges the stocks as a security against the debt.
Visit the holdings page on Console . In the holdings table, hover the cursor on the stock you want to pledge and click on 'options' and select pledge for margins . Once you do, you will get a pop-up, which will show how much margins you will be eligible for.
Pledging simply means taking loans against the shares that one holds. Shares are considered a type of asset. They act as a collateral against loans. Any individual or institution that holds shares can pledge them.
Pledging of shares is an arrangement in which the promoters of a company use their shares as collateral to fulfil their financial requirements. Pledging of shares is common for companies that have high shares owned by investors.
Pledged assets can reduce the down payment that is typically required for a loan as well as reduces the interest rate charged. Pledged assets can include cash, stocks, bonds, and other equity or securities.