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Sharekhan Future Margin
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Margin
Derivatives are the most interesting form of trading that brings excitement to the field of stock market investment. Today we are going to discuss Sharekhan Future Margin in this document.
A derivative is a money related contract between the two parties that derive the value from the underlying assets. The underlying assets include commodities, bonds, equity, currency, etc.
Before directly jumping into the Sharekhan future margin. We think it would be better to give our readers a brief about the Futures and Margin and other things related to it.
So let’s get started; firstly let’s see what is the actual meaning and role of futures in the stock market.
Futures are derivatives that are money related contracts between two different parties. This ensures the execution of the underlying assets on the specific pre-decided contract date or expiry date as per written in contract norms.
Futures is also known as futures contracts as in this contract the buyer has to buy the asset and the sellers have to sell the assets irrespective of the fact that at the time of the contract expiry date the buyer or seller is earning profit or incurring a loss.
The Futures contract has to be completed at a particular date and at the price decided while signing the contract.
Let’s understand the concept of Margin
The money that is taken from a broker or a brokerage firm to buy an investment is known as Margin. The margin is the difference between the total money of the investor and the amount of money borrowed from the broker.
Margin trading helps the investors to trade freely as they can take a loan from the broker to purchase the securities they can’t afford at the time of buying securities. The money borrowed from the brokers helps them to trade in the market.
For this, a trader must have a margin account rather than just having a standard account.
Even if the trader borrows money from the broker, still, he needs to pay some amount from his account as well, he can’t buy securities by taking the whole amount as a loan from the broker.
The amount raised by the trader himself or taken out from his own account is known as Margin Money.
The individual who has entered the futures contract doesn’t need to pay the whole amount on his own; the broker and the trader both will invest for the trader. The payment made by the trader is called Margin Money.
Along with it know about Sharekhan Ledger as it helps you to give a summary report that helps you to take decisions effectively and efficiently.
Generally, margin money is based on a percentage (%) that starts from 10% and can extend to 35-40% in the case of heavy volatility.
In this section, we will discuss how much Sharekhan provides margin to the traders and we will also see in which segment Sharekhan gives futures margin.
Let’s see if it gives margin in equity, commodity, currency, and how much margin is provided by Sharekhan to its traders?
The equity futures margin is provided by Sharekhan. The Equity Futures can be traded as intraday as well as for positional trading.
The expiry period of Equity Futures is maximum of 3 months, the settlement day being the last Thursday of that specific month.
Equity Futures Trading is powerful as it gives you the choice of buy as well as short sell.
The benefit of Equity futures trading is that you are permitted to sell stocks without claiming them and convey forward the positions by taking short-sell positions.
The margin provided by Sharekhan for intraday is 15X times. The individual can take forward futures to positional trading for T+7 with 5x exposure. The interest rate will be 18% + GST.
Commodity futures are not a new concept. Earlier there was a cotton future exchange in 1875.
But then later in the 1960’s the concept of a commodity future was discontinued due to the fear of speculative activity and hoarding. After working on this problem, in 2002 it was reintroduced in India.
The term commodity futures refers to a consent to purchase or sell a crude material at a particular date later on at a specific fixed price. The agreement is for a formerly fixed amount.
No changes can be made in this agreement whether one is gaining profit or making a loss.
It can likewise be exchanged for positional trading which additionally has an expiry date attached to it. The margin offered by Sharekhan is 10x times the total value.
Currency futures contracts are also called foreign exchange futures, popularly known as FX futures, which are a sort of futures agreement to trade cash for another at a fixed price on a particular date.
Around 8x time exposure is provided by Sharekhan per executed order on intraday. Currency futures can be utilized for hedging and speculative purposes
Conclusion
Sharekhan is one of the leading full-service brokers headquartered in Mumbai, was incorporated in Feb 2000, and has over 1.7 million client base all over the nation.
In margin trading, one can buy the stock that he can’t but. You are permitted to purchase stocks by paying an amount less than the real value.
Hope this article has helped you to know regarding the Sharekhan Future margin. If you still have any queries you can freely comment below and ask us to clear your doubts.
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