How to Pledge Shares for Margin in Angel One
Published 2026-10-16 · Aadarna Stock Broking Pvt. Ltd.
Unofficial guide. Written by Aadarna Stock Broking Pvt. Ltd., an Authorised Person of Angel One Ltd., to help account holders. App screens and menu names change with updates, so follow the steps shown in your app. For official help, visit the support section of angelone.in.
Key takeaways
- Pledging lets you use shares you hold as collateral for margin while they stay in your demat account.
- Every pledge must be authorised by you with an OTP from the depository.
- You receive margin after a haircut, so less than the full market value.
- If your margin falls short, pledged shares can be sold to cover it.
If you trade derivatives or use margin, you can pledge shares you already own instead of adding fresh cash. This guide explains the general process on an Angel One account. For the concepts in more depth, read our article [Margin pledge explained](/blog/margin-pledge-explained).
Screens and menu names change with app updates, so follow the current steps in the Angel One app or the support section of angelone.in.
Before you pledge
- Only certain shares and ETFs are accepted as collateral. The app shows which of your holdings are eligible.
- Each eligible holding has a haircut, so the margin you receive is less than its market value.
- There may be charges for pledging and unpledging, as per Angel One's current tariff.
- Pledged shares can be sold by the broker if you have a margin shortfall.
General steps to pledge
- Log in to the Angel One app or website and open your holdings.
- Look for the pledge option, often shown on the holdings screen or in a margin section.
- Select the holdings and quantity to pledge. The app shows the estimated margin you will receive after the haircut.
- Submit the request.
- You will receive a link or OTP from CDSL on your registered mobile number and email.
- Authorise the pledge with the OTP. No pledge is created without your authorisation.
- Once processed, the collateral margin appears in your account.
General steps to unpledge
- Open your holdings or the margin section and find the unpledge option.
- Select the holdings and quantity to release.
- Submit the request. If the margin is in use for open positions, you may need to close positions or add funds first.
- Once processed, the shares are available to sell or transfer.
Understanding margin shortfall
If the value of pledged shares falls, haircuts are increased, or your trading losses grow, your margin can fall below what your positions need. When that happens, you may be asked to add money quickly. If you do not, the broker can sell pledged shares to cover the shortfall, at the market price at that time.
Exchange rules also require part of the margin for certain positions to be in cash rather than collateral. The app shows how much cash margin you need.
Questions to ask yourself
- Would I accept these shares being sold at a bad moment to cover a loss?
- Do I understand the margin needed for the positions I plan to take?
- Do I have spare cash available if margin falls short?
Stay safe
- Authorise pledges yourself; never share the CDSL OTP.
- If you receive a pledge OTP you did not request, do not use it and contact Angel One immediately.
- Check your CDSL statement for pledges and unpledges, and make sure they match your own actions.
Frequently asked questions
Do I still get dividends on pledged shares?
Yes. Pledged shares remain in your name in your demat account, so dividends and other benefits come to you.
Why is my margin less than my holding value?
Because of the haircut applied to each holding, which protects against price falls.
Can Aadarna pledge my shares for me?
No. Pledges must be authorised by you with the depository OTP. We can explain the steps, but we will never ask for your OTP.
Sources
- Angel One help – pledge and unpledge securities for margin
- SEBI – Margin obligations to be given by way of pledge/re-pledge in the depository system (February 2020)
Risk disclosures on derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to ₹50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Source: SEBI study dated January 25, 2023 on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment", wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.