How to get Margin Against Shares and trade without cash balance?

  • 19
  • April 21, 2016

64 Comments

  • Sandy says:

    What is hair-cut?

    • Trade Smart Online says:

      Hello Sandy,
      Since the stock prices keep changing every second how do we value a stock?

      Well, we take help of a parameter called hair-cut. This means, based on the risk in any stock we discount the value of the stock by that much amount for the purpose of valuation.
      Ex: Let’s say a stock’s market rate is Rs 100 and the haircut percentage is 15%. Then the value of stock will be considered at Rs 85 (Rs 100 – 15% of 100) for the purpose of collateral value.

    • Pradeep kumar tripathi says:

      Ha sir your trade charge is more to other broker . You take value trade charge but other take only brokerage charge why

      • Trade Smart Online says:

        Hello Pradeep
        There seems to be a misunderstanding. What exactly do you mean by value trade charges? Can you please give an example?

        • Pradeep kumar tripathi says:

          I pay value trade charge Rs. 15 but sharekhan is not take value trade charge he take broking charge only my Id no. YUPP60. you want to checks

          • Trade Smart Online says:

            Hello Pradeep,
            As per your telephonic conversation with one of our executive, your query regarding Rs.15 demat transaction charge, is resolved to your satisfaction. You can also take the help of online chat support available on our website for any query.

  • DR N K BABU says:

    it is applicable for now trader also or not

    • Trade Smart Online says:

      Hello Dr N K Babu,
      Share pledge service is not applicable to NOW traders. You may shift your account to NEST trader in case you want to avail this service.

  • Piyush says:

    Don’t you think the charges for pledging is too much i.e Rs.60 per script. where as the normal broker do not charge anything for this facility. Then why are you charging?

    • Trade Smart Online says:

      Hello Piyush,
      As we are a discount broking firm and charge you very less brokerage as compared to other brokers. We charge a very nominal of Rs.60 for pledge and also no cost involved for unpledge.

  • Why do I need to pay the margin money? | Knowledge Base says:

    […] case you want an extra intraday exposure with less margin then you may use Margin Against Shares. You can also refer EquiMax product to get higher exposure in equity […]

  • Bhushan says:

    TSO is not fit for pledging. Rates are super high.

    • Trade Smart Online says:

      There seems some confusion here. We charge just Rs.60 for pledging shares for availing higher intraday exposure in your trading account. In case you want to pledge shares in any bank for taking loan then the pledge charge would be Rs. 200. Hope we addressed your query.

  • vinit says:

    trading software and app is very poor……
    kabh holding dikhate hai ya kabhi bhi holding gayab ho jati hai…..

    • Trade Smart Online says:

      Hello Vinit,
      As per your conversation with one of our executive, it seems that you were trying to get the data on weekend. Your transaction details will not be uploaded in the trading software on weekends. However, on weekends you can see holdings in BOX back office.

  • How much exposure (limit) will I get in different segments? | Knowledge Base says:

    […] We also provide Margin Against Shares. […]

  • Bracket Order & Trailing Stop Loss | Trade Smart Online Blog says:

    […] Also Read Now Pledge your shares for extra margin […]

  • Rajendra Singh panwar says:

    Margin is avail in holding without pledging of share or not and rs60 is one day charges only or for month

    • Trade Smart Online says:

      Hello Rajendra,
      To get the higher exposure, you are required to pledge the shares which are there in your demat account. Without pledging, extra exposure cannot be availed. Rs.60 is charged only when you request for pledging. We don’t charge when you unpledge the same shares.

  • Devidas says:

    Devidas
    What is your levies percentage ? Because I earn Rs 720 in intraday trading but deduct (levies) Rs 544 in contract note and only Rs 176 credited in my demate account.

    • Trade Smart Online says:

      Hello Devidas,
      Kindly refer our statutory charges levied apart from brokerage. In your case, you have selected Rs.15/order plan. In this plan Rs.15 is charged on each executed order that you place, irrespective of the quantity in one order. You have placed multiple orders in a single day on which you have been charged 544. In case you trade small volume then you might change your brokerage plan to 0.7 paise plan. We will also arrange someone to explain in detail about the brokerage plans.

  • muhammad naseem ansary , yukm14 says:

    how can I transfer my shares to my VNS account from my account with another broker and what will be the charges thereof?

    • Trade Smart Online says:

      Hello Muhammad,
      You must have received DIS (Delivery instruction slips) while opening account with other broker. You need to fill in DIS issued by other broker and attach Client Master Copy(You can download from BOX > My Profile section) of VNS account and submit with that broker. There will be no charge from our side. You need to check with that broker if there are any charges applicable.

  • Abhay says:

    Do you accept liquidBees as cash equivalent (for the 50% cash margin requirement for overnight F&O positions)? Will I have to pledge the liquidbees or simply having liquidbees in my demat is sufficient? What other forms of cash equivlalent margin you accept (Bank FD etc?). Please provide details.

  • Where can I find a list of all the charges applicable? | Knowledge Base says:

    […] Stock Pledging for Margin against shares […]

  • Benefits of using NEST platform | Knowledge Base says:

    […] Margin Against Shares […]

  • Sachin DUA says:

    Hello,

    Can you explain me amount i have to pay on for pledge share.

    If i Pledge 100 share of PNB bank Value is 10000
    for single pledge, first i have to pay 60Rs (reply is it ok? )

    Second Now How much margin i get on that pledge share, that is 40000 amount. (reply is it ok? )

    And now with 40,000 margin, i bought shares in CNC delivery & i bought reliance shares of 40000.

    NOW as per my plan, i have to pay

    15 RS as brokerage fix for single buying, second how much time i am keeping reliance share, that much margin charges… will also apply. (reply is it ok?)

    Can you know me for one day, how much i have to pay margin charges on reliance share.???

    Thanks & Regards,
    Sachin DUA

  • Nikhil Thopate says:

    Plz send MAS of pdf to my mail I’d

  • Moin says:

    1. Make search common for all equity, optikns, future in single search like zerodha.
    2. Why current LTP not showing in position or during modify .
    Please add
    3. Whats ur tweeter handle and email if for feedback

  • Margin against Shares in Demat Account: Real Significance to Know says:

    […] Also Read: Now pledge your shares for extra margin using Margin Against Shares Feature […]

  • DHARM SINGH says:

    Commodity me intraday marjin kitna hai
    जैसे की आस्था ब्रोकर में 2000 का क्रूड ऑयल का लॉट मिल जाता है जिंक और लेट 5000 में पर लौट गोल्ड 10000 पर लो ट क्या ट्रेड स्मार्ट ऑनलाइन में भी ऐसा हो सकता है

    • Trade Smart Online says:

      Hello Dharm Singh,
      Please refer our another article on Intraday Exposure in all segments. In case of any query, please let us know.

  • Sreenivasulu says:

    In zerodha they will close the open position after 3:20 PM but in tradesmart online also they should give time to the intraday trader’s till 3:20pm

    • Trade Smart Online says:

      Hello Srinivasulu,
      Intraday timing is decided based on the risk parameters that need to be considered while squaring off the open positions of clients. However we shall look into it.

  • ROhit says:

    Do you accept liquidBees as cash equivalent (for the 50% cash margin requirement for overnight F&O positions)?

    Zerodha is doing it. If you can, you will find a lot more clients joining you like me.

    • Trade Smart Online says:

      Hello Rohit,
      Currently we do not accept liquidBees as collateral because, the interest from Liquidbees comes in the form of dividend units. To know which account the dividend should be credited to, they check in which demat account the Liquidbees units were at the end of the day. This means, the dividends would go to the Clearing Member with whom the units are pledged. The dividend units then need to be redistributed to the various clients. Currently, our backoffice does not have a provision to do that as these units are fractional units. Moreover, the daily interest rate was not available in the form of a file. So it had to be entered manually and hence prone to error. However, we’ll check if there are any new developments which allow us to accept Liquidbees too for margin purpose.

  • Mukul Gupta says:

    Hi If you do not accept liquidbees as collateral, is there any other option in which we can invest & that would be equivalent to cash margin with minimum haircut

    • Trade Smart Online says:

      Hello Mukul,
      Currently there are no other options in which liquidbees are considered as collateral. However, we shall check this further and know if we can do something for this.

  • rupeshezhu says:

    If I take delivery of say 10 shares of Asian Paints for 1 year from the margin money following proper cash to collateral ratio, will I be charged any interest by VNS on the delivery

    • Trade Smart Online says:

      Hello Rupesh,
      In case of equity trading, MAS feature is available only in intraday products. For taking delivery of stocks you need to pay full value of the stocks.

  • Jegadish says:

    Do you allow To pledge Liquidbees for availing margin agains shares. If allowed, will that be treated as cash margin. Also please clarify, whether Bharat Bond ETFs are accepted as collateral for pledging.

  • omprakash bhandekar says:

    There shall be Rs 15 for pledging and Rs 15 for unpledging + GST charged per scrip per day irrespective of the quantity.
    PLEASE EXPLAIN
    YMHM52

    • Trade Smart Online says:

      Hello Omprakash,
      Hope below example will help you to understand better.
      Assume you have pledged ABC share and XYZ share on 1st Oct. On 1st Oct you will be charged Rs 30 (15 for ABC and 15 for XYZ). If you unpledge ABC share on 20th Oct then you will be charged Rs 15 again on 20th Oct. If you unpledge XYZ stock on 25th then on same day you will changed Rs.15 for unpledging.

  • gopal says:

    kindly introduce pledges that are acceptable under cash component such as liquid bees, gold bonds, overnight funds etc. Zerodha s doing it. we are eagerly waiting for you to introduce such things..please do it as soon as possible..you will see a number of clients joining TSO..

    • TradeSmart says:

      Hello Gopal,
      We do allow Liquidbees for pledging and it is treated as cash margin. Kindly refer to this list for stocks that are available for pledging. Secondly, please share the list of gold bonds, overnight funds, etc. which are referring for pledging benefits at [email protected] so that we can check and asist you accordingly.

  • Gopal says:

    Sure..wil do it..kindly inform MAS updates via notification..you hav introduced long back but we didn’t knew this

    • TradeSmart says:

      Hello Gopal,
      Thank you for showing interest in Margin Against Shares (MAS). We had intimated our clients via email and push notifications regarding the introduction of MAS. Considering your request, we shall inform our clients regrading MAS updates.

  • gopal says:

    Hi..can u please clarify whether liquid bees, niftyetf, bharat bond etc are considered as cash component or equity component?? your support team says it is equity component..but here u mentioned it as cash component..even NSE and other brokers consider these as cash component..kindly clarify please..

    • TradeSmart says:

      Hello Gopal,
      As of now, it’ll not be considered as cash equivalent. For the cash components, you will need to maintain cash in your trading account. However, we are working reducing the cash requirement for the purpose of giving limits.

  • Naresh Hegde says:

    Can we pledge INVITs

    • TradeSmart says:

      Hello Naresh,
      Currently, the Infrastructure Investment Trust (InvITs) stocks are not available for pledging. Please refer to this link to know the list of stocks available for pledging.

  • Sai M says:

    I did not understand the penalty part for 50% ledger balance and 50% collateral. Once you are saying I don’t need to maintain cash and can use 100% collateral and in the same time you are saying to maintain 50% ledger balance. What is a ledge balance? Is it different from cash balance?

    • TradeSmart says:

      Hello Sai,
      Firstly, the ledger balance and cash balance are the same.

      In the old system of MAS, if you want to create the position of 1 lac then you would required to have atleast 40k cash in your account. The remaining 60k would be taken from the collateral value (40:60 ratio). Without cash balance you were not allowed to create position for MAS.

      In the new system, even if you have zero cash balance, you are allowed to create positions for MAS.

      In both the systems, when the FNO and currency positions are created, the exchange accepts 50% margin from cash balance and 50% margin from collateral. The collateral received from you will be given to the exchange against your margin requirements. Since the cash margin is less than 50%, delayed payment charge (DPC) @ 0.05% per day will be levied on the amount funded by us.

  • Anbarasu A says:

    Hello,

    Hair cut for the securities looks higher than list posted in NSE website.

    For Example :

    TCS hair cut in tradesmart platform is 19.58% , where as in NSE haircut list shows as 11.08%.

    EBBETF0423 hair cut is 8% in tradesmart and only 6% in NSE haircut list.

    why is the difference for the same instrument.

    Also let us know if the MAS facility available for Mutual funds as well. Fyers were providing this facility with less haircut.

    Thank you in advance,

    • TradeSmart says:

      Hello Anbarasu,
      Generally the haircut is bit higher with brokers as compared to NSE website. In order to avoid any kind of risk (Ex: Price movement), we at TradeSmart increased the haircut percentage.
      Sorry to say, currently MAS facility is not available for Mutual Funds. We shall check the best possible option to provide this service.

  • Aniruddha says:

    So what you are saying is I can create a FnO position with 0 cash balance If I have sufficient collateral but by EOD I have to maintain 50% cash balance to avoid 0.05% DPC ?

    • TradeSmart says:

      Hello Aniruddha,
      Yes, you are right. Please refer to this link to know more on Delayed Payment Charges (DPC).

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