Customers can place orders for Delivery, Intraday trades across segments i.e. Cash and Derivatives (Derivatives include FnO, Currency, Commodity) on Dhan. Dhan also allows Bracket Orders (BO) and Cover Orders (CO) as Intraday products.
In Cash Segment for Delivery or CNC trades, customers are required to have in their ledger balance funds upto the 100% of the gross value of stock at the time of the transaction. Currently no margin is provided for Delivery or CNC trades on Dhan.
In Cash Segment for Intraday trades, Dhan customers are provided a limit which is as per the exchange defined VAR+ELM for the respective scrips and subject to a minimum of 20%. For e.g.: customer A has effective ledger balance of Rs. 50,000 and wishes to buy a scrip X, assuming that the VAR+ ELM for the scrip X is 25%, customer can buy/sell scrip X only upto worth Rs. 2,00,000 for
In terms of Delivery / Carryforward Based derivative trades, the Dhan customer is provided a margin which is as per exchange defined margin that also is equal to Span + Exposure + Delivery + Special Margin. For Futures and Options traded on NSE/BSE/MCX, the limit provided to the customer is as per margin requirements for the respective contract. For Example, customer wishes to trade in 1 lot of Nifty, assuming the margin required to create position in 1 lot of Nifty is Rs. 1,50,000. The customer needs to have an effective ledger balance of at least Rs. 1,50,000 to initiate the trade.
In terms of derivatives contracts there are specific criteria which define the contracts that can be traded via Dhan for both normal and intraday trades in order to protect the consumers from market volatility and fluctuations.

The criteria for trading the areas are summarized below in Table 1.
Table 1: Derivative contract allowed for trading

The trading limit that is available to the customers is a function of their combined ledger which is available to customers across all segments along with the value of the pledged securities. Trading Limit = Total combined ledger (Net segment-wise ledger) + Pledge value (Net of Dhan Hair Cut).
Note: The feature of pledging is currently unavailable on the Dhan trading platform. There will be customer announcements once this feature is active. Valuation of margin pledge holding will be as per previous day closing price or current LTP whichever is lower after applying Dhan defined haircut.

In the cash segment, Illiquid stocks are those that cannot be sold easily due to limited trading volume. These stocks pose higher risk to investors because it is difficult to find buyers for them as compared to frequently traded shares. Stocks that are not liquid are restricted for purchase on Dhan. The stocks that are restricted on Dhan include GSM, ASM ( above stage 2) , unsolicited sms , stocks ( Refer Link for Detail ) as decided by the Risk Policy or updated basis exchange communication. Dhan reserves the right to refuse execution of any transaction requests of the customer on such restricted securities or to reduce the open market interests of the customer in such securities/ contracts In terms of derivatives, Dhan has restricted trading in some options and future contracts to avoid manipulation of price and for the protection of consumers. The criteria for restriction is based on the open interest. In order for any derivative to be permissible, minimum open interest should be 10 lots in particular contracts.
Norms for Trading in Restricted script
In order to exercise additional due diligence some scripts are restricted at Dhan platform. That scrip can be bought through a centralized call and trade desk with predefined norms. Dhan shall not be responsible for non-execution/delay in execution of orders in restricted scripts consequential opportunity loss or financial loss to the customer.

Pre-condition:

1. For buying in restricted script clients must have clear credit in account.
2. Order will be executed after due diligence from the RMS side.
3. Max order value will be 10% of the exchange volume of that script.
4. Restricted script will be traded through Centralized call and trade desk.
5. Restricted scripts purchased through the Centralized desk will not be allowed to sell the same day.
6. Additional 1 % charges will be levy on purchase of Restricted script (on Purchase value)

Timer Base/intraday Square off :
At Dhan, a timer based intraday square off policy is followed where all positions created in Intraday/BO/CO will be squared-off from RMS side before closing of Market. All pending orders / unexecuted / partial orders will be cancelled as per intraday product feature. At the respective segments square off times, the positions will be squared-off at the best available price. The table below specifies the square-off time by each segment. Table 3: Timer based summary time

Equity Derivatives
In case of derivative contracts; starting from 3 days prior to expiry ( i.e. Monday, start of expiry week) , only intraday trading will be allowed and no fresh carry-forward position will be allowed. If the customer wishes to take or give physical settlement of derivative contracts, they would be required to maintain margin, which is to the tune of 100% of the contract value before 12.30 pm on expiry day (Thursday ). (Refer Link for Physical settlement of F&O ). If for any reason, in case there is a margin short-fall ( i.e. less than 100% of the contract value) , Dhan reserves the right to square-off the position. In case the position does not get squared-off for reasons such as liquidity constraints, option contract getting converted to ‘In The Money’ during market hours etc., the costs (penalties/losses) of physical delivery will be applicable to the customer.
Commodities
Commodities with compulsory delivery will be closed a day before their respective tender period / delivery intention. Physical Delivery of Positions is not allowed. All the deliverable contracts of MCX enter ‘Tender Period positions’ as mentioned by exchange from time to time. Customer’s positions will be squared-off one day prior to the start of the ‘Tender Period’ of the contract. No positions will be allowed to carry over in Tender Periods. Please note, the creation of new positions in contracts will be blocked 1 day prior to the initiation of the ‘Tender Period’ or ‘Devolvement Period’
Commodity Delivery Options Blocking Before Devolvement Period
Based on the criteria specified in the SEBI circular exchange shall identify option commodities which shall be settled through devolvement of future contract. Commodity delivery option contracts pertaining to devolvement will be blocked for further trading from T- 4 days before current month expiry day. (Only square off allowed for current month expiry options).
Payouts of Funds
Customers can withdraw the amount available in the Dhan trading account at any point of time by placing a fund payout instruction of the trading platform. Calculation for fund withdrawable amount is given in table 4.
Table 4: Calculation of withdrawable funds

In order to execute and sell transactions of available securities in the customer's account, the customer can use E-DIS mode by using a TPIN from CDSL. This PIN is required to be set by the customer. Customers can pre-authorize the sale of stocks via the CDSL TPIN facility, at the beginning of the trading day so that customers do not need to take authorization prior to each sell transaction for holdings. Upto 80% of the sell credit of delivery trades can be utilised for all segments for further buying of new positions on the same day. For example: If the customer sells holding worth Rs. 200,000 then the customer will get credit for sell benefit up to 80% of gross sell shall be allowed, which will be Rs. 160,000 for new positions on the same day.

With reference to SEBI circular reference no: SEBI/HO/MIRSD/DOP/CIR/P/2020/143 dated July 29, 2020 & SEBI/HO/CFD/DCR-2/CIR/P/2020/164 dated September 02, 2020, all the Collateral margins can be given only in accordance with the securities pledge to Clearing Corporation (NCL). The request shall be initiated by the customer.

An account shall be marked dormant if there's no trading activity observed for a period of 12 months. Dormant customer mark inactive at Dhan platform no further trade will allow.

On ledger debit, if debit obligation is not clear up to the settlement day, then Dhan will charge delayed payment charges at 0.05% per day. As per exchange norms, in order to trade in derivatives, the margin needs to be 50% cash/cash equivalent and only 50% non cash. Thus, any shortfall in Cash or Cash equivalent will levied Interest at the rate of 0.05% per day.
E.g.: Customer has a clear ledger Rs.50,000 and non-cash (pledge AHC) Rs. 100,000 and the customer takes a derivatives position that requires Rs. 150,000 margin. For this transaction the customer is required to have Rs. 75000 cash collateral but the customer had only Rs. 50,000 so interest will be charged on shortfall amount Rs.25,000.