13.8 Online trading : New experience
The facility of online trading has made stock market transactions very easy. With this technological breakthrough our trading platform now links our banking, trading and demat accounts, thereby ensuring unmatched convenience for customers. Trading is made easy with many of the major banks providing the facility of opening trading accounts along with savings account. Moreover, depending on the service providers, traders get innovative offerings like Margin, Margin Plus, BTST, SPOT etc. Derivatives trading, overseas trading, mutual funds, IPOs and online life insurance are the added advantages.
This is a delivery-based trading system which is generally carried out with the intention of taking delivery of shares or monies.
You can also do intra-settlement trading of up to three or four times your available funds wherein you take long buy/short sell positions in stocks with the intention of squaring off the position within the same day’s settlement cycle. However, certain conditions apply to such transactions.
Margin Plus Trading
Through Margin Plus you can do intra-settlement trading of up to 25 times your available funds, wherein you take long buy / short sell positions in stocks with the intention of squaring off the position within the same day’s settlement cycle. Margin Plus will give a much higher leverage in your account against your limits, though certain conditions do apply.
This facility can be used only for selling stocks already existing in your demat account. When you are looking at an immediate liquidity option, ‘cash on spot’ may be an excellent option. On selling shares through ‘cash on spot’, money is credited to your bank account the same evening and not on the exchange payout date. There may be a special fee charged for the service.
Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on the first and second day after the buy order date, without you having to wait for the receipt of shares into your demat account.