Before we discuss the leverage products of Samco, let us look at leverage trading:
What is leverage trading?
As per Investopedia, ‘leverage’ is the use of borrowed funds to increase one’s trading position beyond what would be available from their cash balance alone. Brokerage accounts allow the use of leverage through margin trading, where the broker provides the borrowed funds. Leverage, however, can amplify both profits as well as losses.
The Four leverage trading products offered by Samco are:
These leverage products ensure that traders maximise the efficiency of their capital and never have to miss a trade for want of it.
Samco offers a host of leverage products to investors and traders, one of them is CashPlus. CashPlus enhances your equity delivery buying leverage.
CashPlus is Samco’s equity delivery leverage product that allows investors to get up to 4X margin against cash in over 400+ stocks for equity delivery trades. In simple terms, if you have Rs.1,00,000 cash balance in your Samco ledger account, you can buy stocks in delivery for up to Rs. 4,00,000 with a CashPlus subscription.
You can carry forward your Delivery Trades Ad Infinitum as long as your margins remain within the prescribed limits.
StockPlus is a complete margin-against-shares product that provides trading limits against your shareholdings for intraday and positional trading in the equity derivatives and currency derivatives segment.
You can initiate trades even if the cash available in your trading account is ZERO! Yes, that’s correct! You’ll get trading limits against your shareholdings only to trade across all segments. There’s no requirement to maintain any cash/collateral ratios. StockPlus is a complete ZERO Balance margin against shares trading account.
OptionPlus is a product that allows you to get high leverage in options indices as well as stock options in the exchange of NSE.
OptionPlus allows you to take up to 20X leverage while selling/writing option positions and up to 3X leverage while buying option positions. You can take leveraged options position in Nifty & BankNifty indices, and even positions in the liquid stock options.
4. What is BTPT? ( Buy Today, Pay in Two Days)
BTPT is a Samco product that permits you to pay for your acquired shares in delivery within 2 days from the date of purchase. You only pay the initial margin at the time of purchase and can pay the rest in 2 days.
What’s more, is that by holding the outstanding sum in your savings account for an additional 2 days, you stand to gain a good interest amount upon it, which diminishes the value of brokerage paid in the delivery transaction. Thus making BTPT product superior to any brokerage-free trading model out in the market. It also frees up your capital for 2 days and gives you the freedom to utilize that capital as you see fit.