Delight for Traders - Important Enhancements on Trading Platform
As you already know we have always been relentlessly thriving to offer you the best-in-class user experience and are trying to introduce new measures that will make your trading experience better on our platforms. In this pursuit, we have recently released some key developments that I am excited to let you know about.
Hedge margin benefits:
In order to provide you the maximum benefit of the margins available in your account, we have made certain changes in our systems to pass on these benefits to you. We have explained them here with examples;
- Hedge Benefits on Multi Legged Strategies
Now you can avail hedge margin benefits when you take positions using strategies like straddle and strangle
Earlier we use to charge a complete margin on each trade which results in a higher cash requirement to execute the straddles and strangles or any other multi-legged strategy which has margin benefit.
Now the same has been reduced since we have started calculating the span requirement with respect to strategies
Let us understand the same by taking an example:
In the below scenario before the implementation, at the order level client required Rs. 327121 to build this strategy, but now after this changing client can build the below strategy only in Rs. 186754.
Click here to calculate your strategy margin.
Hedge benefit in intraday positions in Equity & Currency derivatives
Earlier, we were charging a flat percentage of delivery position to individual intraday position as per intraday margin master of the exchange. This was resulting in no hedge benefit when you create an intraday position. Now we have changed the calculation mechanism of intraday margin requirements. Rather than charging it on a flat rate, we have started considering it at your trades level. Hence, now your margin requirements will be lower as compared to earlier and you will be able to take hedge benefit while placing intraday orders
Things to note:
- Hedge benefit will now be allowed for pending orders.
- You must have at least one order (leg of hedge) executed to get the hedge benefit while placing hedge order.
Hedge Benefit in Commodity Segment
We have started tendering hedge benefit (Margin Benefit) for delivery trades in commodity segments. This will help you to hedge your position on larger exposure with less margin requirement. Earlier while taking a hedge position complete margin was required for each trade was charged at trade level and the portfolio trades were not being considered while checking for incremental (leg of hedge position) hedge trade. Now we have started considering the margins at portfolio level which means that lesser margin will be required when you perform a hedge this includes the changes in span margin calculation at the time of placing the trade which is required for making a hedge.
Consider collateral while taking payouts
To improve the withdrawal process, we have started considering the collaterals while Calculating the payout. This means now higher payouts even though you have open positions.
How does it work?
Earlier at the time of taking payout, we used to consume the full margin requirement by exchange for an open position in cash so as to mitigate our risk with respect to your open position. Due to this even if you have the stock collaterals, you would have to keep 100% of margin requirements in cash.
So to improve this process, we have started considering the collaterals up to 50% of your margin requirement or amount of collaterals whichever is lower.
Let us understand this with an example:
Assume you have Rs. 1,50,000 As cash balance in your ledger
You have Rs. 4,00,000 as value of your collaterals
And assume you have Rs. 2,00,000 worth of open position
In earlier scenario your payout calculation would be as follows:
Cash Balance - Open position = Amount available for payout
1,50,000 - 2,00,000 = -50,000
So your eligible value for payout would be 0 here since your balance available for payout is negative
After the implementation of changes:
Cash Balance - Open position + (50% of open position or collateral value whichever is lower) = Amount available for payout
1,50,000 - 2,00,000 + (1,00,000 or 4,00,000 whichever is lower) = 50,000.
So post-implementation of the new calculation methodology your eligible payout value would be 50,000.
Position conversion for Carry forwarded positions
We have recently developed the position conversion feature for carry forward positions.
Earlier the position conversion was only allowed for the day on which the position was created especially in the case of the derivatives trade.
Now we have allowed and given the option to convert the carry forward open positions to be converted from intraday to delivery and from delivery to intraday.
This will allow you with an option to the square of your open position by converting it to an intraday position in case if you do not wish to take delivery of the contract.
Steps for Position conversion
- Go to net position
- Select the position you want to convert
- Select the conversion option
- Enter quantity you want to convert
- Confirm the conversion
Note: This feature is currently available only in web. It will be available in mobile app and desktop application soon.
Upcoming Delights
We are continuously upgrading our platforms and backend in order to provide the seamless and the best trading experience on our platforms; below are certain features we are currently working on and you will soon be able to use them on our platforms.
- Basket Orders: with this you will be able to add multiple orders and place them all together at once with single click.
- Stock SIP: Feature where you can start your systematic investment plan in stocks too
- VTT order type: Now place an order with a perpetual validity until the order is triggered
- eDIS Revocation: Feature which allows you can revoke the sell authorization which you have given for selling the stocks from your Demat account (Only for Non-POA clients)
- Easy Unpledge: Placing an un-pledge request will be a lot easier and will have a simplified user journey
- Liquid funds as cash collateral: a feature that will enable you to pledge your Mutual fund holdings and get the benefit of it as collateral to buy the equities
Further to this, we are also working on revamping our web & desktop trading applications in order to provide you with a seamless trading journey. It will come up with quite a lot of features for real-time analysis which shall help you in your trading decisions. We are excited and would unveil these platforms to you soon.