MutualSaathiStock Market & ExchangesWhat is pledging of shares and what is the risk?
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What is pledging of shares and what is the risk?

Pledging means using your stock holdings as collateral to get a loan or trading margin from your broker. Risk: if the stock price falls below a threshold, the broker issues a margin call — you must deposit more money or the shares are force-sold (margin call). Never pledge more than 30-40% of your portfolio value.

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