What does pledging involve and how does it operate?

What does pledging involve and how does it operate?

 Some investors may miss out on trading opportunities because they have a limited amount of available cash despite owning stocks, ETFs, and mutual funds. To address this, they can pledge their shares/ETFs as collateral, with a percentage deduction known as a haircut. These margins can be utilized for Equity Intraday trading, futures & options writing (equity and currency F&O), with adjustments made for price variations at the conclusion of each trading day. It's important to note that commodity futures and options cannot be traded with collateral margins