Business Wire IndiaUnder Margin Trading Financing (MTF), one can buy stocks by paying only a part of the total value of stocks. One can pay this marginal amount to the stockbroker in the form of cash or shares as security. The stockbroker funds the balance amount for orders placed under margin trading. This is how Margin Trading derives its name.
The catch here is that one should ideally earn a profit higher than the sum of margin interest incurred over the period the position is carried and the brokerage applicable on the trade. One may lose money instead of making money from a margin trade if the interest charged is higher than the profit.
Margin Trading: A profit-making deal or not?
In many instances, investors and traders end up losing money, even if they register a profit on the margin trade because of the high interest they have to pay to their brokerage partners at the time of squaring off.
If a trader were to look forward at strengthening the position in the stock market by working on higher volume, the high brokerage charged by various brokers should also be assessed.
The stockbroker can set the interest rate for Margin Trading facility under specific guidelines by the Securities and Exchange Board of India (SEBI). To maintain competition, different brokers and financial institutions charge differently when it comes to Margin Trade Financing. Therefore, as an investor or trader, one would benefit from comparing the interest rates various brokers charge.
A quick look across the websites of various financial institutions would tell that the companies charge as high as a whopping 21% per annum on Margin Trade Financing.
Margin Trading Finance at 8.5% per annum with Bajaj Financial Securities Limited (BFSL)
To fill this gap, Bajaj Financial Securities Limited (BFSL) offers a Margin Trading Finance at just 8.5% per annum through its unique subscription plan- Bajaj Privilege Club.
BFSL, one of the leading and trusted names in the financial services industry, can enhance the trading experience with various benefits that are unique in the industry.
Open Demat and Trading account now to avail the benefits.
Bajaj Privilege Club: An exclusive plan for investors by Bajaj Financial Securities
Bajaj Privilege Club comes with an array of star features and attractions.
Equity Delivery, Intraday, and Future & Options at a brokerage of Rs. 5 per order.
Margin Trading Finance facility at one of the lowest rates in the industry, i.e., only 8.5% per annum. Only Rs. 23.28 per day for Rs 1 lakh Margin Trading Finance.
Almost 75% lower brokerage than other discount brokers in the industry, reducing the trading cost. (Most of the other brokers charge Rs. 20 per order, BPC clients pay Rs.5 per order across all segments)
One can carry a position for up to an extended period of 365 days.
Competitive Benefits with Bajaj Financial Securities
Better profit margins
One can make a better profit margin when trade moves in favour since the brokerage charged under Bajaj Privilege Club is just Rs.5 per order across segments. .
Ideal for Short Term Gains
If a trader is looking for Short Term Gains, this is their go-to option. Take a leveraged position with a month’s view, for example, and exit when price reaches the expectations. One just has to pay the margin amount to take trade under MTF and pay interest only for the number of days the position is carried.
Margin Trade Financing facility is regulated by SEBI. Not only this, the regulator pre-defines the securities that one can trade under Margin Trading. Add to this, the security that comes with a creditworthy name like BFSL with CRISIL AAA/STABLE credit rating, and one can trade peacefully.
Leverage up to 3.5 times on cash and securities that gives enhanced limits to trade with.
Dealing Desk Support
One can get support from a dedicated dealing desk to help and support with the trades seamlessly.
One can avail of the Bajaj Privilege Club membership for an annual fee of Rs. 9,999/- and enjoy its specially curated features to enhance their trading experience. Get Margin Trade Financing for only 8.5% per annum with Bajaj Financial Securities.