Rule the Stock Market with Margin Trading facility
THE OPENING BELL
In the stock market, you usually get what you pay for. Except otherwise the brokerage fees and the mandatory tax payments, you pretty much are honored the same number of shares in your Demat account as per your purchasing capacity.
It does not matter if you are buying it from the National Stock Exchange or the Bombay Stock Exchange, the share prices and the share credits happen as per the flow of money in or out of the system. Traders make or take the prices to their buying and selling levels in the stock exchange.
In this market there are bulls and bears too. The bulls of the stock market are always optimistic about the share prices, they bet for the prices to go up and the bears do the opposite. It is the fight between the two that creates the drama on the prices through the chart patterns and the candle body and wicks.
Then there are the fundamental ratio geeks, who do value buying basis the various financial parameters of a company trading the stock market. they essentially buy the stocks for the long term and would eventually walk out with major wealth create in their portfolio.
But you do not necessarily need to be an ace investor or a rich magnate to pump in money to the share market. In this money market of shares. You can also borrow money to bet on your favorite horses or shares/companies. Many businesses are run on debt and so you can also pick your new trait of doing business through this wonderful opportunity.
It is rightfully said that when you buy shares you end up buying a piece of the company and if you are confident of the growth of this particular brand or company, why not bet confidently.
THE SECRET
Not many are aware but, if you open an account through Upstox, you can get a Margin Trading facility. With a Margin Trading facility (MTF) you can have at least twice the buying power. So, even if you don't have the buying capacity, you still get an edge in the stock market by simply making double the profits with half the amount.
So how does it work?
THE FINE PRINT
But, before we begin learning more about it, always remember that margin trading is a double-edged sword in the share market. You have to use it to your power. You have to use it smartly and only when you are confident in your decisions.
You can either make it all or lose it all in one go. It's like electricity, you can light up a neighborhood or just get electrocuted too easily.
Remember, since this is borrowed money, this is a liability to you. You have to pay interest on the borrowed amount and also will have to take care of the losses.
You have to accept that when the Risk management system finds it necessary they can even square off your position.
The stock market is a market made for money and with money, so you should know the rules of the game very well. Learn it at your pace and then get in the ring.
Now, for the most important part. How do you open a Margin trading facility what are the terms and conditions?
Upstox, a TATA group-backed product is known for its super easy onboarding facility. They are also famous for the Margin trading facility.
Here are a few points to keep in mind-
No paperwork which means seamless online account opening.
You can get the Margin trading facility, and benefit in hundreds of stocks, you can check it from the National Stock Exchange Website https://www1.nseindia.com/content/fo/fo_underlyinglist.htm
You can borrow up to Rs 12,50,000 from Upstox
You can hold up the stocks for a maximum period of 150 days in Upstox.
There is an interest rate of Rs 20/day for slabs of Rs 40,000.
Your stocks can be seen under the positions tab on the Upstox app.
So, in reality, you are getting a lead in the stock market by borrowing 50% of funds to buy stocks though it is temporary.
- And of course the benefits of discount broking in the stock market.
Feels all nice to get the power to be at least at par with the big sharks of the market, isn't it? Especially if you are a professional Future and Options player, you will seem to love this option of leverage. The fun part is, that even though this is not intraday trading, you are still getting the leverage to play on the growth of your favorite scrips.
THE CLOSING BELL
So too, sum up. Please understand that since your buying power is doubled, your chances of making losses are also doubled. You will have to sell the stocks at the end of 150 days. Don't forget to calculate the interest that has been added over the days. It is really important to understand, that even if you have incurred losses, you are bound to square off positions at the end of the stipulated time period.
MORE PERKS
Other than the Margin trading facility, Upstox also provides some cool stuff like ready-made option strategies. You can very well predict the markets and play it to your might. Remember, you can also play deep OTM and ITM options via Upstox. Upstox also comes with a great TradingView integrated platform with all its features.
And, don't forget that Upstox gives you pleasant surprises too. Especially to people who are lucky and have used any links from this website. If you are still not getting enough. Read more.
While Upstox is the most prominent player. Popular stock market brokers like Fyers and Zerodha are also known for interesting perks.
Check out for latest offers from the platforms and make your decision. Fyers has amazing chart trading options, and Zerodha is known for the elegant look and trading experience too.
Read more about Zerodha and Fyers in another blog.
Last but not the least, remember to consult your financial advisor and do your due diligence before you make any investments.
Happy investing!
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