Amidst finding the cure for the pandemic of COVID 19 and the implementation of new margin policies of SEBI, the stock market industry has been facing a lot of heat from the trading community. To provide a breather to our clients we’ve worked in our backend and we're happy to announce the implementation of the Single Margin Account in FYERS with effect from 30th November. It has been implemented based on the feedback received from the community. So let’s get started!
What is a Single Margin Account?
A Single Margin Account is an account through which clients can trade in all the segments (i.e., Equity, FNO, CDS, and Commodity instruments) with a Single Limit. Previously, there were two separate Limits (i.e., Capital and Commodity), but with the implementation of Single Margin in FYERS, the clients can trade in all the segments with one limit without any hassles.
- You can get a unified trading experience across all the segments i.e, you need not maintain separate funds in capital and commodity segments.
- Eliminates the possibility of a delay to transfer funds from capital to commodity and vice versa.
- The trader need not go through the cumbersome process of transferring funds and withdrawing funds between the accounts.
- The additional charges incurred by the trader for separately transferring the funds can be saved.
- The traders can focus on the opportunities available across segments and need not worry about maintaining funds separately.
How it works
A single margin account allows fungibility of funds between segments. Previously, if a client wanted to trade, he had to transfer funds separately in order to trade in capital and commodity segments.
For Example, Mr. X wants to trade in the F&O segment, transfers Rs. 1 Lakh to his capital account. Here, he wouldn’t have been able to trade in the commodity segment with the same limit. If he wanted to trade in commodities, he'd have to transfer a separate amount to his commodity segment or withdraw his funds from the capital segment, wait for it to get credited into his bank, and then transfer the same to his commodity segment. This process was cumbersome and time-consuming.
So, in order to make the trader’s experience easy and efficient, Single Margin Account has been implemented through which traders can maintain funds in a single account and trade across segments.
For Example, Mr. Y wants to trade in Equity, transferred Rs. 1 Lakh, and has taken a position of SBIN for Rs. 50,000. After an hour or so, he found an opportunity in Natural Gas. Here, Mr. Y will be able to take the position as an amount of Rs. 50,000 is still unutilized and there is no bifurcation between the capital & commodity segment (Limit wise).
What are the changes for existing clients that had 2 margin accounts?
Not much. A single limit will be shown to all the clients with 2 margin accounts even if they have separate funds.
For Example, Mr. Ramesh has Rs. 10,000 in his capital account and Rs. 25,000 in his commodity account. So, his funds available will be displayed as Rs. 35,000 without bifurcation.
Operational Changes - Adding Funds, Withdrawing funds, Payout timings.
- The procedure to add funds will be the same but only one account will be displayed instead of capital and commodity segment shown separately.
- The withdrawal procedure will also be the same but with a single ledger. No Group 1 (Capital) & Group 2 (Commodity) bifurcation.
- All the payout will be processed at 6:30 AM on working days. Requests placed before 6:30 AM will be honored on the same day. Requests placed after 6:30 AM will be honored the next day. Now you may wonder why? This is because the payouts can only be done after the trades & backend processes are completed and the commodity process happens after MCX closing hours.
We hope that this update will help you allocate your capital more efficiently & capitalize on opportunities instantaneously. We thank you for your patience and invaluable patronage. We’re coming up with more exciting things in the future.
Stay Tuned & Happy Trading!