Trade Smart Online

[TradeSmartOnline]

@ TSO,

I took the survey which I received through E-mail. The points were good but the options given were not comprehensive. Either this or that kind of options cannot help in inferring something very credible from the answers chosen.

I think that after sometime plz. try to incorporate a more comprehensive survey by giving an option for adding comment on each question if the choices given are not acceptable to the respondent.

Thanks for taking the survey and also for the suggestion. We'll keep that in mind. We kept standard answers there so to have objective data to be able to analyse it. Also we had kept a text box at the end so any additional comments. Did you get that box?

 

[cloudTrader]

Thanks for taking the survey and also for the suggestion. We'll keep that in mind. We kept standard answers there so to have objective data to be able to analyse it. Also we had kept a text box at the end so any additional comments. Did you get that box?

Yes , I got that box in the form. First I thought of writing something in it but later I thought of mentioning here about what I expected more from the survey.

 

[TradeSmartOnline]

Yes , I got that box in the form. First I thought of writing something in it but later I thought of mentioning here about what I expected more from the survey.

Ok. We'll keep that in mind the next time and experiment with it a little.

 

[TradeSmartOnline]

Hello all,
We'd like to update you on a development many of you have been waiting for.

Margin Against Shares is now available for you to use. Your BOX account should already have Margin Against Shares as a separate tab where you can go and pledge shares to start using MAS.

For additional info, please refer to our blog on MAS.

In case you have any comments please do let us know.

And one more thing, this is not all.

 

[crazymouse]

You are charging for pledged shares !

 

[crazymouse]

I dont want margins against shares. I want to sell a covered call. Are you going to provide this facility anytime later ?

 

[cloudTrader]

@ TSO,

The below Line from the Article about MAS

Charges: The pledging charges for MAS will be Rs 60 per scrip per day.

Please elaborate about the per day thing !! I am bit confused about what exactly do you mean by per day.

Also Nifty Bees & Liquid Bees will be counted in for Pledging ?

Thanks

 

[TradeSmartOnline]

I dont want margins against shares. I want to sell a covered call. Are you going to provide this facility anytime later ?

Hello crazymouse,
If you are writing an option contract, a collateral is required for the same. The shares in your demat account can not be considered as a collateral as then there could be a gray area whether you wanted those shares to be a collateral or not. This is one of the points of disputes in case of many brokers. Hence the shares need to be pledged.

You will be getting margin benefit against the shares you pledge and that'd reduce your cash requirement. So for example, earlier 1 lot of Nifty call required margin of Rs 25,000, now after you pledge shares your cash requirement will go down to Rs 10,000 only (Rs 25000 x 40%). The remaining amount can be in collateral.

Exchanges require 50% of the margin in cash. But we are working on making the cash requirement even lower for intraday purpose. But for now it is at 40%.

Rs 60 charges have been put as that is a charge levied to us by our clearing member. As per our knowledge this is a charge most brokers charge and some of them charge much higher than this amount.

But we'd also like to understand what exactly you were looking for. If you could let us know with an example what your suggestion would be then we'd be very happy to look into it.

 

[TradeSmartOnline]

@ TSO,

The below Line from the Article about MAS

Charges: The pledging charges for MAS will be Rs 60 per scrip per day.

Please elaborate about the per day thing !! I am bit confused about what exactly do you mean by per day.

Also Nifty Bees & Liquid Bees will be counted in for Pledging ?

Thanks

Hi Leonid,
Poor framing of the sentence. Sorry about that.

So it'd be Rs 60 per scrip per request and not per day.

So if you have pledged 100 quantity of Reliance and 200 quantity of ACC you will charged Rs.120 (60*2) exclusive of the service tax. The pledge charges will be debited from your ledger the day at the time the request is processed.

We will have it rectified.

Liquidbess currently is not available in the list of securities we accept. However, Niftybees can be pledged. You can also check the list of pledgeable securities that can be accepted on our website.

Please let us know in case you have any other query/suggestion.

 

[crazymouse]

Hello crazymouse,
If you are writing an option contract, a collateral is required for the same. The shares in your demat account can not be considered as a collateral as then there could be a gray area whether you wanted those shares to be a collateral or not. This is one of the points of disputes in case of many brokers. Hence the shares need to be pledged.
.

There should be a way out , a solution. I am categorically giving you the rights to sell my covered shares, if exercised. Why should be there be a grey area ?. So if i am called , i'll have to deliver,since i'll be selling only those calls which stocks i have.
Do all brokers in India follow your rule ? How do they manage , and why cant you? I dont like the idea to pay 60 rs plus cash to sell a covered call.