Margin and Leverage Policy


1.What Is Margin? What Constitutes Available Margin?

When you make purchases in your trading account, there are two ways in which you can pay-either pay in full using your own funds or use margin. Margin refers to the finance extended by your broker for your purchase. In a margin purchase, you pay a certain portion of the purchase while the broker lends the difference. Of course there is a financing cost which the broker will charge you a fee for extending this finance in addition to the normal brokerage and also hold the stocks you purchased as collateral.

2.What Is Ez Wealth’s Margin and Leverage Policy?

Margin/Leverage Policy

At Ez Wealth our margin and leverage policy is designed to cater to the various product offerings we have this margin policy is subject to change at any point in time based on market volatility. We offer several membership plans which provide extremely high (~25 times) leverage for traders fond of margin trading, for more details on membership plan on offer please refer to our pricing plan section. The following section will give you our standard margin policies while trading equity intraday & delivery, F&O, currency, and commodity we offer higher leverages than our standard margins for our clients who have taken different memberships,

Margin Policy For Stocks Or Equity Trading

Intraday equity:

When you take a trade in equity and square the position off before the end of the day, it is called as intraday equity trading. Since the trades are squared-off intraday and do not require any overnight carry of the trade we are able to provide you a margin or leverage of between 3 to 10 times on around 150 liquid stocks based on the trading plan you have subscribed to. You can trade intraday at Ez Wealth with leverage by using these 2 product types.

  1. MIS (Margin Intraday Square off)
    Trades under this product type come with a commitment of keeping the trade intraday and hence higher leverage between 3 to 10 times based on the risk, volatility of the stock and the trading plan you would have subscribed to. When you take a trade using product type as MIS the trades are auto squared off at 3.20pm if you forget to square-off your trade.
  2. CO (Cover Orders)
    Cover orders is another order type which Ez Wealth has made available for our active traders. Traders can trade intraday using market orders but with a definite and compulsory stop loss. Since the risk with such a position is low, the margin required is less and hence the leverage higher. When you trade intraday using cover orders, the leverage you get varies from 6 to 20 times (twice as much as MIS). But again all open positions get squared off at 3.20pm.
Delivery Equity:

When you buy stock and hold it overnight, it is called a delivery trade. At Ez Wealth, you need to use product type as CNC while placing a trade to take delivery of equity stock. The product type CNC will show up on your order window only if you have a demat account mapped to your trading account since you would require a demat to take delivery of the equity that you purchase. At Ez Wealth the leverage factor for delivery trades is one which means you can only use the amount that you have to purchase stocks for delivery purposes for e.g. if you want to buy Rs 2 lac of stock as CNC, you will need this Rs 2 lac in your trading account and similarly if you want to sell Rs 2 lac of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.

Margin Policy for Futures Trading – Equity (Stock & Index), Currency & Commodity

Futures as such are inherently leveraged which means that to buy X amount of futures you need only a small portion of it called as margin in your account. The margin requirement to purchase futures is stipulated by various exchanges. There are three types of products that you can use for trading futures at Ez Wealth

NRML (Normal)

To take the position as NRML you will need the complete exchange stipulated margin, but once you take a position as NRML you can hold the position until expiry.
MIS is used by intraday traders as all open positions get squared off before the end of the day. But since no position is carried forward overnight the margin required is also lesser than the exchange stipulated margins.

  1. For equity & Index futures, MIS margin: 40% of NRML margin, all MIS positions squared off at 3.20pm.
  2. For Commodity futures, MIS margin: 40% of NRML margin, all MIS positions squared off 25 minutes before market closing
  3. For Currency futures, MIS margin: 50% of NRML margin, all MIS positions squared at 4.30pm.
CO (Cover orders)

Cover orders is a unique product from Ez Wealth where you can trade intraday using market orders but with a definite and compulsory stop loss. Since there is a stop loss placed, the risk of the position reduces and hence the margin required to take it reduces as well.

Margin Policy for Options Trading – Equity (Stock & Index) & Currency

Option buying:

When you buy options, either equity or currency there is no additional leverage we provide. So if you are buying calls or puts of any contract, the premium required to buy them has to be present in your trading account.

Option Writing/Shorting:

When you short an option, the margin required depends on various aspects like underlying, expiry, volatility and more. You can short option either using the product type as NRML or MIS.

3.What Margin Products Does Ez Wealth Offer?

Here is the broad summary of our margin products for more details please refer to the pricing section of our website

  1. Equity delivery based trading (CNC: Cash n Carry)
  2. 100% money required upfront. Use the product type CNC in your buy/sell order form.
  3. Normal F&O Trades (NRML: Normal)
  4. Exchange stipulated margins, positions taken as NRML can be held until expiry.
  5. Intraday leverage Trade (MIS: Margin Intraday Squareoff)
  6. Trade using MIS if you want leverage or additional margin. All MIS positions are squared off
  7. automatically 10 to 15 minutes before close of the markets.
  8. Up to 25 times intraday leverage for equity
  9. Up to 4 times for Futures (over and above the margin you get anyways on futures)
  10. Up to 4 times for option shorting
  11. No leverage for option buying. (You can use bracket orders for additional leverage only for buying Nifty and Bank nifty options)
wealth -
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Investors
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered Intermediary (Broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.

Wealth Discovery Securities Pvt Ltd - CIN: U74999DL2010PTC211626 | Wealth Discovery Commodity Pvt Ltd - CIN: U74999DL2011PTC213264

Disclaimer : Prevent unauthorised transactions in your account. Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day. Issued in the interest of investors. All clients have to update their email id and mobile number with Member.
Investor Grievance investor@wealthdiscovery.in | Compliance officer - Sachin Bansal sachin@wealthdiscovery.in, PH: 011 4344 4666 Powered by HireWpNinja
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