Astha Trade Margin (Part 2) – Equity, F&O, Equity Futures, Commodity & Currency Margin List

Astha Trade Margin Facility

Astha does provide Margin Trading facility to its clients provided they fulfill the requirements as set by SEBI. The Margin Facility helps the client to take advantage of a sudden opportunity.

With the Astha Trade Margin Trading Facility, a trader can trade for a larger position with a lesser fund.

This is how it works. Suppose, a trader wishes to trade over a share valued at INR 100000. He/she has INR 50000 in hand. With the Astha Trade Margin Trading facility, the trader can still go ahead.

 That is because the shortfall will be covered by the broker.

With this leverage, a trader can hold on to larger positions with a limited amount of cash.

However, this should not be mistaken with the initial margin which is mandatory for the trader.

The initial margin is a combination of the SPAN margin and the Exposure margin.

The SPAN margin is a computer programmed calculation, based on the Value at Risk model. It checks on the risk faced by each stock.

The exposure margin is the degree of exposure faced by each stock. This is charged over and above the SPAN Margin.

The exposure margin is also called the Extreme Loss margin.

Hence, the initial margin = SPAN margin + Exposure margin.

The initial margin is collected by the broker at the beginning. It is charged to protect the stocks from sudden price changes and volatility.

Astha Trade Margin is provided to traders trading in option buying, options writing/shorting, futures, commodity, and equity.

Astha Trade provides up to 40x margin for intraday and up to 4x for delivery trades.

This would mean that suppose the trader has INR 25000 in the trading account, he/she can potentially buy shares up to INR 100000.

Astha Trade Margin
Astha Trade Margin

The other illustration of the same would be:

Suppose a trader has INR 2000 in the trading account. A particular share is trading at INR 100. With the current position, he/she can only buy 20 shares.

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However, with Astha Trade the trader gets leverage of 40x. That would mean he/she can buy 800 shares.

Astha Trade also offers a free Demat account, where one can store the shares, the securities, and the Mutual Fund. Astha Trade Demat Account will be linked to the trading account.

The Astha Trade Margin calculator is a handy tool that benefits the trader in his/her calculations regarding the margins required.

Astha Trade Equity Margin

Astha Trade offers up to 4x for Equity Delivery and up to 40x for Equity Intraday.

The Astha Trade Margin for Equity is calculated on a T+5 days’ basis. The Astha Trade margin calculator shows the following heads.

  • Symbol
  • Series
  • Intraday Margin
  • Delivery Margin (T+5days)

To search for the relevant stock, one has to use the search bar in the symbol section.

The Intraday Trade is also called the MIS or Margin Intraday Square off. This type of trade takes place between the trading hours of the same day, usually between 9.15 am to 3.20 pm.

However, this timing is subjected to the prevalent conditions the market may be functioning in. If there is market volatility at play, the timings are liable to change.

However, it is also pertinent to know that not all stocks can be traded under MIS. Only a select few stocks are allowed to be listed for Intraday trade.

A quick discussion on the fundamentals of squaring off:

It primarily means that if a trader has bought shares, those have to be sold. Whilst if they have been sold, it has to be bought back before the end of the session.

However, if the trader misses it, the broker has the right to square it off by default.

The Delivery Margin of T+5 days signifies that the credit arising of the sale and the profit generated will be made in 5 days.

One can, of course, transform the type to a delivery order after the end of the trade.

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Astha Trade F&O Margin

The Astha Trade Futures and Options Margin calculator is the best way to calculates the future and options trade.

It consists of the following head:

  • Symbol
  • The Lot Size
  • The Price of the stock
  • The Carryover Margin in percentages
  • The Future Intraday Margin
  • The Options Intraday Margin
  • And the Future Carryover Margin
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The Future Intraday Margin, The Options Intraday Margin and the Future Carryover Margin are calculated on a per-lot basis.

The latest expiry date is provided. For the current trade, it is the 30th of April, 2020.

It is a statistical fact that suggests 80% of the trade-in derivatives happen in options.

The exposure margin provided by Astha for Equity Futures is up to 4x

The exposure Margin for Equity Options is up to 6x

The current SEBI circular mandates the broker to collect the SPAN and the Exposure margin for Futures and Options positions which are to be carried over the next day.

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Astha Trade Equity Future Margin

To hold positions overnight requiring the total margin is called the NRML or Normal.

NRML or Normal is essentially a position held.

Any stocks, primarily overnight or intraday Equity Futures can use NRML. Once such a position is taken, it can be held until the expiry of the period.

In case, the buying option appears, the required premium is going to be 1.5 times the total premium.

The margin is calculated as a total premium divided by 1.5 times.

The other product that can be used is the MIS or the Margin Intraday Square off. As we know, this is a strictly intraday trading product and has to be squared off before the end of the session of the same day.

The timings of the trade are between 9.15 am and 3.20 pm. However, this can be subjected to changes depending on the volatility of the market.

Astha Trade Commodity Margin

The Astha Trade Commodity calculator provides the given heads:

The Symbol, The Expiry Month, The Lot Size, The Price, The Carry Over Margin in percentages, The Intra Day margin and the Carry Over Margin in rupees.

The exposure margin for commodities offered by Astha Trade is up to 5x.

However, the commodities traded in MCX by Astha Trade are non-agricultural.

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Astha Trade Currency Margin

Astha Trade Currency Margin
Astha Trade Currency Margin

The Astha Trade Currency Margin can be calculated through the Currency calculator. The heads under consideration would be:

  • The Symbol
  • The Expiry Month
  • The Price
  • The Intraday Margin (MIS)
  • The Option Selling Margin
  • The Carryover Margin
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The Exposure Margin for Currency Futures is 4x

The Exposure Margin for Currency Options is 6x

Open Astha Trade Demat Account
Open Astha Trade Demat Account

Conclusion:

Astha Trade margin provided to traders is one of the most competitive in the market.

The Astha Trade Margin Trade Facility is beneficial to the leverage provided to traders. With the help of this, a trader can trade larger positions with limited cash.

However, it needs to be known that leverage provided by the broker to the trader is a sort of loan.

Also, though stock trading is a fulfilling experience, there are certain inherent risks that are prevalent. Hence, to minimize losses, a Stop Loss needs to be attached to Market orders. This goes a long way in limiting potential pitfalls and amplify returns.

Astha Trade Margin FAQs

Q1: Why is the margin charged?

The Initial margin is the combination of the SPAN margin and the exposure margin. While the SPAN margin calculates based on the Value at Risk model, the exposure is calculated on the degree of exposure faced by the stock.

Initial Margin = SPAN margin + Exposure Margin.

The exposure margin is also called the extreme loss margin. The initial margin is charged to cover the stocks from any potential losses arising out of price changes and market volatility.

Q2: Does Astha Trade provide a Margin Trading Facility?

Yes, Astha Trade does provide Margin Trade Facility to traders. An MTF helps a trader to leverage strong positions through less than required cash. The return is amplified when traded with the help of a Margin Trade Facility.

Q3: Is every stock allowed to be traded in MIS for Equity Margin?

No, Not all stocks are allowed to trade under MIS (Intraday). Only selected stocks are allowed to be traded.

Q4. What are the margins offered by Astha Trade for Equity?

  • For Equity Delivery the margin offered by Astha Trade is up to 4x
  • For Equity Intraday (MIS), the margin offered by Astha Trade is up to 40x

Q5: Does Astha Trade provide a Demat Account?

Yes, Astha Trade does provide its traders with a Demat account. A Demat Account allows a trader to store stocks, securities and mutual funds in the electronic form. A Demat Account is usually linked to the trading account.