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SAMCO Margin Funding - CashPlus, StockPlus & IntraPlus Explained

Published on Saturday, May 26, 2018 by

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SAMCO Margin Funding - CashPlus, StockPlus & IntraPlus Explained

SAMCO is a fast growing technology-driven online discount stock broker. SAMCO enables its customers to trade at NSE, BSE and MCX exchanges.

SAMCO offer leverage products through its NBFC Company, SAMCO Capital Private Limited. The capital market funding products including delivery margin, loan against shares, and other related financial products.

Read SAMCO Stock Brokerage Service Review

SAMCO Margin Funding

  1. CashPlus Delivery funding
  2. StockPlus Loan against share for delivery & intra-day funding
  3. IntraPlus Loan against share for intra-day funding

SAMCO Margin Funding helps customers effectively utilize their capital and maximize the gains even though they are short of capital.

Note: Traders need to subscribe to each product separately for getting the benefits of multiple products. The IntraPlus subscriber can't take the benefit of StockPlus without subscribing to StockPlus.

1. CashPlus

SAMCO Cash Plus is a delivery funding product. It offers up to 4 times leverage for equity delivery trades. The company charges 0.05% interest per day for this funding. Over 300 stocks are available for CashPlus margin funding.

Note that margin given is "UP TO" 4x. The actual margin offered differs on the stock to stock. As of May 2018, Only 5 companies were eligible for 4x margin. Most other are between 2x to 1.25x.

Example of CashPlus

Suppose you have Rs 1 lakh in your trading account. As as none of the brokers offer margin for delivery trades, in normal case, you could buy shares of Reliance Industries worth of Rs 1 lakh.

SAMCO CashPlus provides you additional funding of Rs 3 lakhs. It enables you to buy shares of worth 4 lakhs in equity delivery segment.

Key highlights of CashPlus

  • This facility increases the buying power multi-fold.
  • The customer has to pay an annual subscription fee of Rs. 1000 per year for this facility.
  • Interest rate of 0.05% per day is charged. Interest is calculated on daily basis.
  • The customer can carry outstanding debits on the account for as long as the margin is maintained.
  • Shares bought using CashPlus should be sold in the same exchange.
  • Existing Intraday positions can be converted to CashPlus positions.
  • CashPlus is now available for F&O Trading.

2. StockPlus

SAMCO StockPlus offers margin against shares. This is a margin funding product for intraday or positional trading in the Equity Derivatives and Currency Derivatives Segment (NSE F&O & NSE CDS only).

You can trade with absolutely Rs 0 balance in your trading account using this facility. A daily interest of 0.05% is charged on the outstanding balance.

Example of StockPlus

Let's say you have Reliance Industries shares worth of Rs 5 Lakhs. You get the margin of 100% on your holding after a haircut. (Haircut is the buffer money broker keep to cover the losses which may occur if the share price falls and you refuse to pay the loan. The haircut varies by the stock. It is based on the volatility and the liquidity of the stock.)

In case of Reliance, the haircut is 20%. Which mean StockPlus gives you the margin of Rs 4 Lakhs when you pledge Reliance Industry share worth of Rs 5 Lakhs.

You pay interest on this Rs 4 Lakh at the rate of 0.05% daily. You also incur a Rs 60 fee from demat account for pledging the shares and another Rs 60 to un-pledge.

Highlights of StockPlus

  • It is a loan against share.
  • It doesn't require maintaining any minimum balance to initiate a trade.
  • This facility has an annual subscription fee of Rs 1,500
  • It cost 0.05% daily interest + pledge/un-pledge demat charges.
  • Margin is given after haircut. Each stock has different haircut.
  • The customers can pledge 800+ Stocks & ETF's as collateral to get trading Limits.
  • You can place pledge & unpledged requests from back office.

3. InstaPlus

InstaPlus is very similar to StockPlus. Both offers margin against shares for Equity F&O and Currency F&O Trading. But unlike StockPlus, InstaPlus only meant for intraday trades.

Everything else remains exactly same as StockPlus. StockPlus can be thought of as the superset of IntraPlus when it comes to benefits to traders.

Differance between IntraPlus and StockPlus

IntraPlus

StockPlus

Suitable for

Intraday Traders

Intraday and Positional Traders

Product types allowed for trading

BSE - CM, NSE - CM, NSE - F&O, NSE - CDS - MIS only

BSE - CM, NSE - CM - BO and CO

NSE - F&O, NSE - CDS - All product types permitted

Sale of Pledged shares

Instant.

Instant subject to live sale request which can be entered from backoffice.

Product Subscription Fees

₹1000 per year

₹1500 per year

Interest applicable

On Ledger Debit

On Ledger Debit minus lower of (collateral value or 50% of F&O + CDS Margins)

Positions can be held for

Intraday only. All positions must be compulsorily squared of prior to market closing

No restriction. Positions can be carried forward as long as sufficient margin exists.

Checking Limits in SAMCO Trading Terminals

'Collateral Value' field in trading terminals

'Adhoc Margin' field in trading terminals

Pledge and Unpledge charges

₹60 per request per ISIN

₹60 per request per ISIN

Instant Sale Requests - ₹90 per request per ISIN

Number of Stocks available for Pledge

800+

800+

Restrictions on Unpledge Requests

In case of Ledger debits or Sale of pledged shares

In case of Ledger Debits or Pending Instant sell requests

Holdings view in SAMCO Trading Terminals

Under 'Collateral Quantity'

Under 'Withheld holdings Quantity'

Risks with Margin Funding

Margin Trading carries a high degree of risk. It magnifies a trader gains and losses.

Trading on Margin can expose your capital to substantial risk. In certain cases, you may sustain a total loss of the capital. You should be well aware of the risks of margin funding.

You should carefully consider your risk appetite and financial position before using any margin products.

Frequently Ask Questions

  1. Why do you need margin funding?

    There are many use cases for margin funding. Here are few:

    • Confident on a tip/event and do not want to lose the opportunity because you don't have enough funds in the account.
    • T+2 days to arrange funds while buying stocks
    • Make most of Indra-day Market volatility and trade in Margin, Futures, and Options
  2. How much does it cost?

    Margin funding with SAMCO has the following cost involves:

    • Annual Maintenance cost of Rs 1500 to avail this facility.
    • The interest of 0.05% on the outstanding balance.
    • Pledge/Un-pledge Demat charges – Rs 60 each side
  3. Do I have to pay yearly maintenance fees?

    The margin product comes with an annual subscription fee. CashPlus has an AMC of Rs 1000 per year. StockPlus and InstaPlus have an AMC of Rs 1500 per year.

  4. What is the difference between StockPlus and IntraPlus?

    Both StockPlus and InstaPlus offers margin against shares for Equity F&O and Currency F&O Trading.

    In StockPlus, you can place both intraday trades as well as positional trades.

    In IntraPlus, you can place only intra-day trades orders.

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