Wisdom Capital Margin policy

Margin in trading do excites us a lot to trade more and more. Actually margins are in accordance with the market dynamics and may change from time to time. Below mentioned are some of the points which depict the various margin policies of Wisdom Capital. These will help you out while trading in various segments. Let’s have a look at them:

WISDOM CAPITAL MARGIN: AT A GLANCE

Brokerage PlansFreedomProUltimate
NSE Equity
MISUp to 5XUp to 40XUp to 60X
BO/CONAUp to 40XUp to 60X
NRML1XUp to 4XUp to 5X
NSE Futures
MISNA5XUp to 15X
BO/CONAUp to 6XUp to 20X
NRMLNA1X1X
NSE Options
MISNA5X for Writing/SellingUp to 15X Writing/Selling
BO/CONAUp to 6X for Writing/Selling,
Up to 2X for Option Buying
Up to 20X for Writing/Selling,
Up to 3X for Option Buying
NRMLNA1X1X
NSE Currency
MISNA3X5X
NRMLNA3X5X
BO/CONA1X1X
MCX Commodity
MISNAUp to 6XUp to 10X
NRMLNAUp to 7XUp to 14X
BO/CONA1X1X

1. Equity Trading

Wisdom Capital provides you with an opportunity to trade in both NSE and BSE segment. These are the details for exposure in Intraday and Delivery trading:

  • Intraday: Basically it involves opening and closing on the same day itself. In this segment, WISDOM CAPITAL is providing leverage up to 60 times in Equity. Basically you need to place orders with the product types MIS/BO/CO. The leverages provided here are as per the brokerage plan selected by you and the segment of the stock you want to trade in.
  • Delivery:
    1. Delivery trading involves holding stocks overnight. Here in this section, you can expect to have leveraged up to 5 times in Equity. Here you are required to place orders with the product type NRML.
    2. The leverages in this segment are provided for T+5 days that mean you can take the holding for settlement day plus 5 days. For example, if you have taken the holding on Monday, the settlement will be done on Wednesday and thus, you can carry the holding till the next Wednesday.
    3. Finally the holdings will be squared off by 11 am on the due day.
    4. The leverages are provided as per the brokerage plan selected by you and the category of stock you are trading in.
    5. The debit in account will be chargeable @ 18% p.a. from T+2nd

You can have a look at our Margin Calculator for leverage in Equity segment here.

  1. Future & Option Trading (Equity Stocks and Index)
  • Intraday
    1. Wisdom Capital is providing leverage up to 20 times in Future Contracts in Bracket Order (BO) and Cover Order (CO), and up to 15 times in Margin Intraday Square-Off (MIS), depending upon the brokerage plan chosen by you.
    2. Whereas, in Option Writing/Selling up to 15 times leverage is provided in Margin Intraday Square-Off (MIS), depending upon the brokerage plan chosen by you.
    3. As you know, higher leverages for trading in any segment, especially in MIS (where pre-defined stop loss are not essentially to be placed) has to be used meticulously. Thus, by default up to 10 times leverage in MIS is being enabled on activation of account, as per the brokerage plan chosen. However, if you are an active trader and scalper, it can be increased further, subjected to consent for MTM Square-Off being sent along with welcome letter on account opening.
    4. Options Writers/ sellers trading only on days of expiry will be given prescribed margin on pro-rata basis.
    5. For Option buying, only premium is required for trading. Thus, you need to place orders with NRML.
    6. The Bracket Orders will be introduced in Option Contracts for Buying and Selling/ writing as well, shortly.
  • Carry Forward
  1. According to the various guidelines mentioned by the exchanges, the full margin, known as the span margin or initial margin plus exposure margin will be required to take overnight position or to carry forward the position till expiry. You need to maintain the stipulated margin as per the exchange on daily basis, to avoid any penalties for short fall.
  2. The orders have to be placed in product type NRML.

You can check our Margin Calculator for leverage in Futures and Options segment here.

  1. Future & Option Trading (Currency)
  • Intraday
  1. We are providing up to 5 times leverage in currency futures and option writing, as per the brokerage plan selected by the client.
  2. The leverages will be available in the product type MIS.
  • Carry Forward
  1. As per exchange’s guidelines, the full margin, which is span margin or initial margin plus exposure margin will be required to take overnight position or to carry the position till expiry. The client needs to maintain the stipulated margin as per the exchange on daily basis, to avoid any penalties for short fall.
  2. The orders have to be placed in product type NRML.

You can check our Margin Calculator for leverage Currency segment here.

  1. Future & Option Trading (Commodity)
  • Intraday
  1. Here you will get leverage up to 10 times in commodity futures and option writing. The leverage basically depends on the brokerage plan selected by you.
  2. You need to place orders with the product type as MIS, to avail the stipulated leverage.
  3. However, we are providing leverage up to 14 times in BO/CO type only in Futures.
  • Carry Forward
  1. As per exchange’s guidelines, the full margin, which is span margin or initial margin plus exposure margin will be required to take overnight position or to carry the position till expiry. The client needs to maintain the stipulated margin as per the exchange on daily basis to avoid any penalties for short fall.
  1. The orders have to be placed in product type NRML.

You can check our Margin Calculator for leverage Commodity segment here.

  1. IMPORTANT
  • The positions will be squared off at a MTM loss of 70%*, without the requirement of a margin call. In case of a loss of 70% of your funds, the positions will be automatically squared off by our RMS Team.

*In case you get a special leverage, the positions will be squared off at 50% MTM Loss. This is done to reduce the risk of the client in cases of high volatility in the market. The market is uncertain. It’s better to  play a safe game than repenting later on.

In case of special leverages, separate consent for MTM will be required from you.

  • The MIS/BO/CO trades need to be squared off on the same day, by you, by 3.15 p.m. In case, you have not squared off the position, the same will be done by the RMS Team after the mentioned time. In case of currency, it will be done at 4:45 pm whereas when commodity is concerned, the squaring off is done at 11:15 pm in winters and 11:40pm in summers.
  • Thus, generally the squaring off is done at the time 15 minutes earlier than the market closing time.
  • Although, we square off all MIS trades automatically after 3.15 pm, the responsibility of squaring off the position lies with you. If the position is not squared off, the same will be converted from MIS to CNC/NRML. This will be squared off by the RMS Team on the next trading day, without the requirement of margin call, if the required fund is not available in the client’s account.
  • Margin of Safety:
  1. The client has to maintain 20% Margin of Safety*, in case equity delivery. The non-maintenance of the same will lead to squaring off the position/holding automatically by the RMS Team, without the requirement of margin call.
  2. The same is done to maintain risk in case of volatility in the market or in the particular stock taken by the client.

*Margin of safety = (Net Cash Available *100)/ Total Holdings

Net Cash Available = Holdings – Debit in Ledger

  • Settlement:
  1. The settlement of all equity trades happens in T+2 days.
  2. Whereas, the trades of derivative segments are settled in T+1 day.
  3. However, you can sell your holdings in T+1 day, at your own risk.
  4. Any credit/profit in the account due to trading will be settled as per exchange settlement for the purpose of payout.
  • Short selling of equity stocks is auctioned at the exchange on the settlement day. Although, we try to settle the shares in case of availability of shares with us. But in case of unavailability, the auction will take place by exchange and penalty will be levied as per the guidelines listed by the exchange.