Wisdom Capital Margin policy
Dear Traders & Investors,In order to make Wisdom Capital a trader’s friendly zone where professional traders can place trades without any frills, we have enhanced few of the basic features in our Risk Management Systems (RMS) depending upon the asset class.
1. DERIVATIVES TRADING – NSE FUTURES & OPTIONS, CURRENCY & MCX
Futures, as well as Options, are intrinsically leveraged instruments, meaning that in order to buy “x” amount of futures the trader needs to pay to the broker only a small portion of money. That fraction of money is called margin money (“margin”). The margin needs to be in the trader’s account so that the trader can take a position in the financial markets. The stock exchanges, as well as brokers, stipulate the margin requirements; the margins are subject to changes depending upon various factors such as liquidity of the asset classes, volatility, and regulations. At Wisdom Capital, we offer three types of margins for futures trading:
To take position as NRML, the trader is required to hold the complete exchange stipulated margin in his account before trading; once a position is taken as NRML, the trader can hold the position till the expiry of the contract.
Margin Intraday Square Off (MIS)
Because of the very nature of MIS facility which requires that all open positions get squared off before the end of day, the MIS margins are used primarily by intraday traders. Since no position is carried forward overnight, the margin requirement for trading is far less than other types of margins such as the ones used for delivery of the contract. At Wisdom Capital, we offer up to 10 times (10X) leverage on margins in case the traders is inclined to trade intraday. Depending upon trading plans the trader has opted for, the terms and conditions are as follows:
1) Pro Plan: Upto 8X limit
2). Ultimate Plan: Upto 10X limit
Please note that 8X/10X limits are available only above the margin ledger balance of ₹10,000/- and 4X limits are available above ₹5000/- only. If the ledger balance falls below ₹10000/- or, as the case may be, ₹5000/- the trader’s limits will be reduced by 4 times and 1 time respectively from next trading session. These will only be replenished as and when the account gets funded to the required levels.
Cover Order (CO)
Cover order is a special feature in which the trader can trade intraday using market orders but with a definite and compulsory stop loss. Since the stop loss is in place, the risk of the position going awfully against the trader reduces; hence, the linked margin required to take a position gets reduced as well. Using cover orders, the trader can trade futures with far lesser margins than NRML and MIS. Presently, we offer cover order facility for equity and currency futures only.
All margin requirements (for NRML, MIS, and CO) are updated on our margin calculators page/section of our website on a daily basis (for details, please see equity futures margin calculator, currency futures margin calculator, and commodity futures margin calculator).
NSE-F&O CURRENCY112 MCX112 NCDEX112
2. OPTIONS TRADING – EQUITY (STOCK & INDEX) AND CURRENCY DERIVATIVES
Pro plans: Leverage is 8X for intraday (Nifty & all liquid scrips)
Ultimate Plans: Leverage upto 10X in MIS (Nifty & all liquid scrips)
3. EQUITIES/SHARES/STOCKS TRADING
Intraday equity trading refers to taking a position in equities and squaring it off before the end of day. Since the position is not carried overnight, we offer a leverage of upto 40X on Pro & Ultimate Plans on “Category A” shares/stocks but such leverage levels are only on those scripts that are enlisted in F&O segment (approximately 200 liquid stocks). This product is also known as MIS (Margin Intraday Square off). Our margin calculator tool has a list of all stocks available in this section and the related available leverages. In intraday trading, if the trader does not exit the position by 03:20pm, its gets squared off automatically.
When a trader buys a stock and holds it overnight, the position is referred to as a delivery trade. Such a position is also called a cash and carry (CNC) trade and it will only be show up on the trader’s trading window if the trader’s demat account is mapped to the trading account because it is mandatory to have a demat account in order to take delivery of the purchased stock. If the trader suffers a loss of 70% in any segment, the position will be squared off automatically.
In Ultimate Plan, we offer upto 5X leverage in delivery based equity segment with a condition that the trader agrees to pay 18% per annum interest on the borrowed amount used to purchase the shares.
. The trader may also use the delivery based shares for intraday margin after Hair cut, so it will be appx 70%.