@vsreeram77, I assume you have not done it or your account would be burned by now and you would have become inactive on
@Traderji. Buying on every decline by pledging your existing holdings can wreck you completely if the markets don't bottom out. Why?
- If your pledged holding value reduces, you will need to pledge more or bring additional margins.
- You pay interest.
- Your MTM losses can cause the broker to sell your pledged holding value.
- In a bear market, if you pledge existing holding and go long, your account value will get completely eroded and finished. This is a classic recipe for a double-whammy disaster scenario.