How does pledging stocks help to trade?

You may move the shares from the Demat account and pledge stocks to avail short term and long-term funding.

Short-term funding includes funding of equity cash stocks for a maximum of 7 days(CUSA) and funding of derivative positions as well (except M2M losses which need to be settled on a daily basis).

Further, the long-term funding is called MTF (Margin Trade Funding), where you have to activate the MTF trading facility and have to move the pledged shares to the MTF segment to get the MTF – collateral margin.