Margin against shares is a value added service provided by Trade Smart Online to its clients. Under this service, clients can pledge their shares and avail additional limit for trading against these pledged shares. The limit can be used for trading in the cash market, equity derivative segment & currency derivatives. There are about 850 stocks they accept for pledging purpose.
This service enables a client with shares in his demat account, which he does not wish to sell, get margin against these shares by keeping them as collateral. To enjoy the margin benefit for trading the client will have to maintain certain cash component known as a cash collateral ratio. The cash is maintained to cover risk for the clients in case of margin obligation is to be fulfilled especially in the derivatives segment.
To make it convenient for its clients Trade Smart Online has made the entire process to pledge and unpledge the shares paperless and the process can be done online. The client can place the request to pledge as well as to unpledge the shares through his back-office called BOX and no separate activation is required. The margin benefit for trading will be made available to the client on the next trading day.
Exposure in delivery and the margin against shares was always thought to be the kind of product or service which only big broking firms could offer with their deep pockets. Trade Smart Online with its ideas, belief and technological innovation has been able to provide these services to its clients is truly notable and it is equally noteworthy since we are living in a disruptive age of startups.
Commenting on the development, Mr. Vikas Singhania, executive director, Trade Smart Online said, "We always believed in innovation, which will benefit our clients and this has been our philosophy at Trade Smart Online. In a disruptive age, where business models are changing like never before, Trade Smart Online by introducing Margin against Shares & EquiMax-Exposure in Delivery will be the first and only discount broking house in the country to have both these products together”.
Mr. Vikas further added, "By launching this service Trade Smart Online has taken a giant step forward on behalf of discount broking and has set new standards in client orientation.”