Frequently Asked Questions | Share India

Steps to enable cameras during in person verification (IPV)?

In case of Google Chrome on phone:

  • If you are using Google Chrome on mobile then tap on context menu button

  • After opening menu, select settings

  • Tap on site settings

  • You can see the camera option enable it

In case of Google Chrome on Computer:

  • You need to click on view site information which appears just before the URL in a lock symbol.

  • There you need to click allow beside the camera symbol.

  • After allowing camera access, refresh the following page

If you are using Mozilla Firefox, you can go to permissions on the left of the address bar and click on X next to Blocked. Then reload the page and click on the permission group.

Another way of allowing camera access in firefox is:

  • Click on the menu button and settings

  • Click the Privacy & Security and scroll down

  • By scrolling down you can click on settings beside the Camera option

  • You have to uncheck the new request and save changes.

For IOS user, you need to manage the app’s privacy permissions

Note: Suppose the camera access is not enabled after enabling the permission, then clear browser cache and cookies. And follow the above steps mentioned in above information.

FAQs on Account Opening / Re-activation

Visit www.shareindia.com to open the account

No, the online account opening process at Share India is absolutely free.

  • A copy of your PAN card.

  • Aadhaar Card/Address proof

  • A mobile number linked to Aadhaar (mandatory, to receive an OTP and esign the account opening form.)

  • For bank account verification, enter the account details, i.e. account number and IFSC, Share India will deposit an amount between ( ₹ 0.01 to ₹ 1) to the bank account and proceed.

  • A scanned copy of your signature. The signature must be with ballpoint or ink pens. Markers or sketch pens are not allowed.

  • Income proof (Only in case of proposed F&O Currency Derivatives transactions)

No

Contact our support team on 011-41194100

In case of a name mismatch between your PAN and address proof - You’ll have to submit a self-declaration letter in order for us to verify this.

24-48 hours

You will receive an email from ShareIndia confirming your account activation along with relevant login credentials.

Upon activation of your trading account, Share India will send your login credentials to your registered email Id. You can start trading immediately thereafter.

To facilitate smooth trading operations, a client is required to open two type of accounts i.e. a trading account and a demat account.

A demat account facilitates holding the shares and securities (bonds, ETFs, mutual fund units, etc.) in digital mode, while a trading account provides the interface to buy and sell shares in the stock market.

No, clients aren't allowed to open mutiple trading accounts with any brokerage firm in India

We encourage clients to open both trading as well as demat accounts with Share India for hassle free trading experience

We encourage clients to open both trading as well as demat accounts with Share India for hassle free trading experience

As per SEBI's directives, clients intending to trade in F&O and/or Currency Derivatives Segments must provide their income proof to the brokerage firm

The Income proof would act as a reference to the amount of turnover executed by the client in the FO/CDS segment and would serve as a benchmark in case any irregularity is observed.

You can request through mail with the income supporting documents e.g. Bank Statement for last 6 months / latest salary slips / ITR / Form 16 (Only in case of proposed F&O Currency Derivatives transactions)

You can request it again with valid documents or call our support team at 011-41194100

Your account will be marked dormant or inactive if you have not taken any trades for a continuous period of 12 months.

To make the account active again, you are required to renew your KYC. You can do so by visiting the e-KYC page

Contact our support team on 011-41194100

Minors are allowed to open demat accounts only that too in offline mode. Documents required- minor stamp, minor KYC and gaurdain KYC alongwith cheque of Rs 1150 towards lifetime AMC

No, an account cannot be opened in the name of a sole proprietorship firm with Share India as it is not a separate legal entity like a partnership or corporation.

The accounts for non-individual entities can only be opened in offine mode. Please call 011-41194100 for further details

No, you will not be able to add another person as a joint holder to your existing account with Share India

You will have to open a new trading/demat account with Share India through ekyc.shareindia.com. Thereafter, you will have to submit a request with your old brokers for payment of money lying in your trading account as well as transfer of securities, if any, from your old demat to your new demat account with Share India

Securities and Exchanges Board of India (SEBI) has mandated that all clients' identity and documents be verified. To comply with this directive, PAN card details are verified from the Income Tax (IT) departments' database, Aadhaar is verified by Digilocker, and the bank account information is verified by making a test transfer between ?0.01 to ?1 to the client's bank account. Further, Share India is also required to verify that the account is opened by the client themselves; hence a In-Person Verification (IPV) is performed.

DDPI is required to facilitate hassle free trading experience and avoid the requirement for physical movement of documents for each transaction relating to sale/pledge of securities

You will have to provide a physical delivery instruction slip after each transaction involving sale of shares as well as for pledge of securities for margin purposes

FAQs on Account Modification

24-48 Hours

You will receive a mail from Share India for the update

For online it is Rs 0 and For offline it is Rs 100

Please raise it to the support team at [email protected]

You can again raise it with the valid documents

FAQs on Payment from Client to Share India

UPI, Net Banking and Vitural transfer

Instant

You can only transfer funds from bank accounts in your name that are linked to your trading account as mandated by SEBI regulations.

You can update the bank details by going into my account and clicking on Edit personal info on the web, go to bank details , update the details and save it.

The funds will be added to your trading account within 3 to 5 working days, once the cheque is cleared.

Yes

Funds cannot be transferred to ShareIndia account using credit card.

No, funds cannot be transferred using cash

Transfer of funds from registered account UPI is charged ar Re1 + GST. 2. Instant payment gateway- This comes at a charge of ₹7-11 depending on the banks plus 18% GST with the convenience of instant credit

We use Razorpay to power the fund transfers You can find the list of supported banks under the ' TPV flow via Netbanking' column on this link.

FAQs on Payment to Client from Share India

The payment is only credited to the registered bank account

The payment is processed the same day if the request is done before 5PM.

No, there are no charges on withdrawal of funds

According to the policy, brokerage firms are required to transfer back all unutilized sums of money kept in the client’s trading account back to the client’s bank account at least once, in a period of 90 days.

FAQs on Securities

SEBI has introduced a new document to replace Power of Attorney (PoA) for the purpose of pledging and repledging of stocks for margin purpose.Clients can use DDPI to authorise the stock broker and depository participant to access their beneficiary ownership account (BOA) only to meet pay-in obligations for settlement of trades executed by them

The shares you purchased are short-delivered.Ideally, when you purchase shares, you will receive the delivery of those shares on T+2 days.

The regulator has asked brokers to start separate client unpaid securities accounts (CUSA), which will hold shares of clients who have not paid for the purchases. Such shares cannot be held for more than seven trading days, after which they have to be sold if the client does not bring in money.

Shares cannot be held for more than seven trading days, after which they have to be sold if the client does not bring in money.

Under DDPI, clients can explicitly agree to authorise the stock broker and depository participant to access their beneficiary ownership account for the limited purpose of meeting pay-in obligations for settlement of trades executed by them,

“The stock broker / stock broker and depository participant shall not directly / indirectly compel the clients to execute Power of Attorney (PoA) or Demat Debit and Pledge Instruction (DDPI) or deny services to the client if the client refuses to execute PoA or DDPI.” Electronic Delivery Instruction Slip or eDIS is a facility which allows you to sell shares when you have not submitted your Power of Attorney (POA).

Shares needs to be transferred to Share India demat account and then shares can be sold.

Electronic Delivery Instruction Slip or eDIS is a facility which allows you to sell shares when you have not submitted your Power of Attorney (POA). Please note: You can only sell the stocks you are holding in your linked Demat account. How to Use Generate TPIN/MPIN which is an authorization code generated by CDSL/NSDL respectively.

FAQs on Margin

Margin trading refers to borrowing money from the broker to purchase stock. The investor is allowed to buy more securities than what he can afford with the available funds at the moment.

Mark to Market (MTM) in a futures contract is the process of daily settlement of profit and losses arising due to the change in the security's market value until it is held. The MTM calculations are done daily after the trading hours, based on the closing price for the day.

As per SEBI regulations, margin shortfall penalty is levied on trades performed without sufficient margin ( SPAN & Exposure for F&O and VAR+ELM+Adhoc for equity), net buy premium, physical delivery margins and marked to market losses (if applicable) as prescribed by the exchange.

FAQs on Trading, limits & RMS

  • Method Time taken Charges

  • NEFT/RTGS Within 2 hours Bank charges may apply.

  • IMPS Within 10 minutes Bank charges may apply.

  • UPI Instant Free

  • Instant Payment Gateway Instant ₹9 + 18%GST

  • Cheque 3-5 working days Free

Cash and Carry (CNC) is used for delivery based trading in equity. In delivery based trade, you intend to hold the stocks overnight for however long you wish. Using CNC product type, you will not get any leverage, nor will your position be auto squared off. You will not be able to take any short positions using CNC. However, you can sell the stock from your Holding using this product type.

Note: CNC is just a product type. If you use CNC to buy and sell a share on the same day, it will still be considered as an intraday trade, and the brokerage will be levied as per intraday.

Margin Intraday Square Off (MIS) is used for trading Intraday Equity, Intraday F&O, and Intraday Commodity. MIS product type is used to get the intraday leverage. You can check the Margins provided in Intraday using MIS product type on our Margin Calculator . All open positions under the MIS product type will get automatically squared off if they are not closed before the auto-square off time. Click here for the auto-square off timings.

Normal (NRML) is used for overnight trading of futures and options. You can use the NRML product type in derivatives to carry your position till expiry. Intraday leverages won’t be provided using this product type. NRML product type is also used for Delivery based trading of Currency.

Intraday Trading defines about the trading that happens within the same day as in you take the position when the stock market opens and the positions are squared off when the stock market closes down. Intraday Margin Time (MIS and CO) 3:20 PM onwards. 3:25 PM onwards. 4:45 PM onwards. 25 minutes before Close.

If you don't square off an intraday position, our system will attempt to exit it on your behalf as per the timings mentioned here, typically around 3.20 pm every day.

A stop-loss order is a buy/sell order placed to limit the losses when you fear that the prices may move against your trade. To buy above LTP, you can place a Buy SL order with the price at which you want to buy. To sell below LTP, you can place a Sell SL order with the price at which you want to sell

A Cover Order (CO) is an order with an in-built risk mitigation mechanism. Simply put, a cover order is a market order or limit order that is placed along with a stop loss order. Since a stop loss order is placed, the maximum loss you will bear is known in advance if the trade moves against you. Cover orders’ purpose is to reduce the risk for the broker and the trader and enable the trader to get higher leverage.Check the below GIF on how to place a CO.

MTF is a service offered by the broker where investors can buy stocks by paying only a fraction of the investable amount.

FAQs on Fee & Charges

List of all charges

List of all charges

Call and trade charges are applicable when you place buy or/and sell orders by calling us Charges are Rs 50 per call

24% p.a will be charged as interest on the debit balance.

Rs 300 per annuam from the second year, it is charged after 365 days of account activation

There are no hidden charges while trading at ShareIndia. We believe in being transparent about our charges. The charges are also available in the tariff sheet.

Other FAQs

Contract note is the legal record of any transaction carried out on a stock exchange through a stockbroker. It serves as the confirmation of trade done on a particular day on behalf of a client on a stock exchange.Contract notes sent to clients over email needs to be password protected as required by the exchange regulations. The password for your contract note will be your PAN number (In Capital letters).

Corporate actions are initiatives taken up by a corporate entity that brings in a change to its stock. There are many types of corporate actions that an entity can choose to initiate.

Platform

Go to login.utradealgos.com After that click on sign in Share India if you are an existing user with Share India, using your Share India user id and password. After login you will receive OTP either on mobile number or on your Email Id. Once authenticated, you click on authorize to link your shareindia account with utrade and begin trading!

There are 6 uTrade Originals strategies on uTrade which have been built by market experts for different market conditions.

  • You can click on any to know more about the strategy and in which market conditions it performs well, the margin requirements etc.

  • Subscribe to the strategy which fits with your view of the market and click on the deploy button.

  • A dialogue box will appear containing the strategy’s parameters. After reading that carefully, you can click on proceed.

  • Your required strategy is now deployed.

For every strategy you need to have a different amount of balance to deploy. A different strategy has a different set of requirements. To keep you informed, we’ve integrated a margin calculator on our platform so you can always keep track of your margin requirements and make informed decisions.

Panic control button is in the top right dropdown, once you click there you get two options either to stop all strategies or to pause all strategies. - Stop all: Terminates all running strategies and squares off all open positions in the market. - Pause all: Stops any further execution while not impacting existing open positions

While you have logged in with uTrade Algos , on the top right corner you will find Index Watch where you can see the current market situation and pin that dialogue box accordingly.

Whether you’re creating your own strategy using our powerful strategy builder or subscribing to a pre-defined strategy- ‘Margin Required’ field tells you how much margin would be deducted from your account with the broker. To get an in depth idea about calculation and different types of margins - use our Margin Calculator feature.

Getting Started

It may take 2-3 working days to receive Share India account credentials to start uTrade Algos Journey and trade like a Pro. Meanwhile, you can still explore our platform, get a hang of the features and experiment using the free 15 day trial. Once you’re brokerage account is active, you can then deploy your strategies in the live markets!

A trading account is essential if you want to trade in the Live market as uTrade is just a layer over your broker which handles the Automation part of your strategy. You can easily open an account with ShareIndia and get started. Open your demat account here: https://www.shareindia.com/open-demat-account

If you are already an existing user with Share India you only need to fill in the credentials and login, but if you are a new user you need to first open your account with Share India. For that you need to have the following documents like : Pan Card, Aadhar Card, 6 months salary slip or income proof, active bank account details, e- Signature.

If you have logged on to uTrade Algos you don’t need to enter OTP till 12 A.M . But after that you are automatically logged out and need to enter the credentials once again. Then you will receive an OTP either on your mobile number or on email. Then enter the OTP and you will be logged in again till 12 A.M

For custom strategies: The capital required to deploy a trading strategy can change depending on several factors, including the type of strategy, the markets being traded, the desired level of risk, and the individual trader's goals and preferences. There is no fixed amount of capital that applies to all trading strategies.


For uTrade Originals: you get to see exactly how much capital is required for each strategy. Currently you need a minimum capital of Rs.8,00,000 for a particular strategy. Please note that each strategy has its own capital requirement, which you can check by clicking on the strategy card.

PAN card details due to regulatory obligations, such as adhering to Know Your Customer (KYC) guidelines, preventing money laundering, and complying with tax reporting requirements. By collecting PAN card details, the platform can verify the identity of the account holder and fulfill its legal and regulatory obligations.

No, the account opening process with ShareIndia is fairly intuitive as our KYC process is integrated with Digilocker so once you connect your account and upload the required documents you can easily get started with ShareIndia.

uTrade Algos requires you to link or verify your Aadhaar details to comply with regulatory guidelines, such as Know Your Customer (KYC) norms set by regulatory authorities like the Securities and Exchange Board of India (SEBI). The e-Aadhaar site allows users to access their Aadhaar details online and download a digitally signed copy of their Aadhaar card.

During the account opening process, you may be redirected to the e-Aadhaar site to provide your Aadhaar details and complete the verification process.

If your mobile number linked with Aadhaar is not active anymore, it may create difficulties in the process of opening an algo trading account that requires Aadhaar verification. The Aadhaar verification process often involves an OTP (One-Time Password) being sent to the registered mobile number for verification purposes.

Skipping the Aadhaar verification step may not be possible, as it depends on the specific requirements and policies of the algorithmic trading platform and the regulatory guidelines they adhere to. Many platforms in India mandate Aadhaar verification as part of the KYC (Know Your Customer) process, which is a regulatory requirement.

Storage and handling of traders' data by uTrade Algos is done in compliance with relevant data protection and privacy regulations. Additionally, it is advisable to take necessary precautions to protect sensitive information, such as using secure passwords, enabling two-factor authentication, and regularly monitoring account activity. Please go through the Privacy policy to get an in depth idea of our practices - https://utradealgos.com/privacy-policy/

In order to trade with uTrade Algos you only need basic laptop/desktop and an internet connection as is the case with any trading platform. With uTrade Alogs we brought the convenience of internet based trading, with the power of algorithms without the need of sophisticated expensive infrastructure.

Basic

Algo trading, short for algorithmic trading, is a method of executing financial transactions in the capital comprising computer algorithms. It involves the use of pre-programmed instructions to automatically place trades on behalf of investors or traders. These algorithms are designed to analyze market data, identify trading opportunities, and execute trades with speed and efficiency.

Algo trading relies on computer programs that are written to follow specific trading strategies or rules. When the conditions specified by the algorithm are met, such as a certain price level or a particular market pattern, the algorithm automatically executes trades in real-time without human intervention.

While algo trading offers many benefits, it also presents some risks and challenges, including:

  • Technical Failures

  • Over-optimization

  • Market Risks: Algorithms are subject to market risks and can incur losses if market conditions change rapidly or unexpectedly.

  • Regulatory Risks: Algo trading is subject to regulations and compliance requirements that traders need to be aware of and adhere to.
  • Lack of Human Judgment: Algorithms lack human judgment and may not account for certain qualitative factors or unexpected events that can impact markets.
It's important for traders to understand these risks and implement risk management strategies when engaging in algo trading.

Algorithmic Trading can be risky, just like any other form of trading. Poorly designed algorithms or improper risk management can lead to significant losses. Proper risk assessment, backtesting, and continuous monitoring are essential to manage risks effectively.

Yes, algo trading is completely legal in India, and it does not matter whether you are a retail investor or an institution. uTrade Algos is an empanelled vendor with NSE, following all the regulations and mandates by regulatory bodies. Additionally, all premade strategies are first appoved by the exchange before getting listed on the platform thus ensuring protection of the interests of the investors.

While having programming skills can be beneficial, you don't necessarily need to be an expert programmer to use Algo Trading. Many platforms and libraries offer user-friendly interfaces and visual tools that allow traders to create algorithms without extensive coding knowledge. However, learning programming basics can provide more flexibility and customization options.

Yes, algo trading is completely legal in India, and it does not matter whether you are a retail investor or an institution. uTrade Algos is an empanelled vendor with NSE, following all the regulations and mandates by regulatory bodies. Additionally, all premade strategies are first appoved by the exchange before getting listed on the platform thus ensuring protection of the interests of the investors.

Squaring off is a trading style that day trade investors use to make profit from the market volatility. The trader buys a number of stocks of one company and sells them off on the same day at a higher price usually, which gives the trader an amount of profit.

The capital required for Algo Trading can vary depending on your trading strategy and the assets you choose to trade. While it's possible to start with a smaller amount, having sufficient capital is important to cover transaction costs and potential fluctuations while trading in the FnO market.

No, uTrade Algos has something for all levels of traders from beginners to the pros. While the simplistic form is self explanatory using which any strategy can be automated, for complete beginners subscribing to a prebuilt algo by Industry experts - uTrade Originals might be prudent*. However, understanding basic trading concepts and gaining familiarity with market dynamics is essential to create effective algorithms and manage your strategy’s risk properly. *This is in no way an Investment advice, please do your due diligence.

No. NeitherAlgorithmic Trading in general or uTrade Algos in any way guarantee/suggest consistent profits or sureshot returns. Trading, irrespective of the technology involved, has risk involved and is influenced by factors like market conditions, strategy design, risk management, data quality, and market dynamics.

Traders must rely on technology to trade. There can be a risk of failure of the system or a weak internet connection. Thus keeping a broad track of execution status here and there, tracking your strategy’s performance initially before going big, understanding uTrade Originals strategies (prebuilt algos by experts) and in which market scenario it works well could be some steps you can take to ensure better experience with uTrade Algos.

In financial markets, the term "Future" refers to a type of derivative contract that obligates the parties involved to buy or sell an underlying asset at a predetermined price and date in the future. For more information → https://utradealgos.com/blog/comparing-cash-vs-futures-market/

It is not absolutely true to say that High-Frequency Trading (HFT) generally beats manual day traders, it all depends on what kind of day traders we are talking about here. If you are talking about day traders who are taking advantage of arbitrage opportunities or market inefficiencies, then yes, machines can do such things much faster. A machine can send thousands of orders in a second so there is no match here.

Definitely! In fact, this is one of the benefits of automating your strategy. Algos are void of emotions which works very well especially in the financial markets, thus relying on an Algo engine does not only ensure better execution but also makes you a disciplined trader.

Express speed - Algos have the ability to fire orders at 1/1000th of a second, way beyond the scope of manual trading.
Automate execution - Instead of monitoring your trades manually, feed parameters into the order form and let our powerful algo engine take care of the rest.
Become Disciplined and eliminate the emotional bias - Algos are void of emotions which works very well especially in the financial markets

Not convinced?
Blog - https://utradealgos.com/blog/ten-reasons-every-trader-should-get-their-hands-dirty-with-algorithms/
Video - https://youtu.be/pCYi_PS5IRY

Each uTrade Algo strategy is best suited for a particular market condition. It is important to understand the strategy’s nature and the scenario it works best in before deploying it in the live market. You can click on any strategy card to learn more about it.

We don't share anyone’s personal or customized strategies with anyone nor uTrade Algos/Share India use it for their own use. All the custom strategies made by the user are confidential.

There are various types of algorithms used in Algo Trading, including:

  • Momentum-based algorithms
  • Mean reversion algorithms
  • Statistical arbitrage algorithms
  • Market-making algorithms
  • Volume-weighted average price (VWAP) algorithms
  • Time-weighted average price (TWAP) algorithms

Not at all! While Professional traders get an edge using Technical Analysis, uTrade users Platform need not worry about learning Technical Analysis from scratch and even a complete novice in the markets can experience Algo Trading using are Pre-made strategy forms that lets you deploy over 20 strategies with a single click

Since you’re trading in Options- it’s a fair question whether knowing Option Greeks in and out would be a deal breaker or not when it comes to Algo trading. But if you still want to explore the world of Options, simply look for uTrade Originals strategies → understand their execution logic → backtest them and get an indication if it’s working well for you. Even without the knowledge of greeks, one can create various strategies by understanding the market environment and reap potential benefits of their analysis.

Subscription

You can choose from a range of multiple plans available on uTrade Algos website. With the help of fixed subscription charges, you get access to unlimited algo trading. For further details please check out the link https://utradealgos.com/pricing/

The best subscription available at uTrade Algos Platform is Expert where you can get a relationship manager to enable you to customize your strategies, help you out with every step of the way. Head on to our pricing page to know more- https://utradealgos.com/pricing/

No. of strategies deployment is totally dependent on the plan you subscribe: Free plan- 2 Beginner- 2 Pro- 4 Wizard- 6 Expert- 10

For predefined strategies, called uTrade Originals - margin is mentioned on the strategy card. Strategies created through advance order form- have a button of margin calculator. So you can directly check through that.

If you are unable to meet the margin requirements while algo trading, it can have several consequences:

Margin Calls: When your account falls below the required margin level, Share India issues a margin call. A margin call typically requires you to deposit additional funds into your trading account to restore it to the required margin level. Failure to meet the margin call may result in further actions.


Liquidation of Positions: If you fail to meet the margin call, Share India has the right to liquidate your positions to cover the margin shortfall. This means your open positions can be forcibly closed, potentially resulting in losses.


Account Suspension: In some cases, if you consistently fail to meet margin requirements, Share India has all the rights to suspend or restrict your trading account. This is done to manage the risks associated with insufficient funds and protect both you and the broker.


Legal Consequences: Failure to meet margin obligations can lead to legal implications, depending on the jurisdiction and the terms and conditions agreed upon.


To avoid these situations, it's crucial to closely monitor your account balance, margin requirements, and available funds. Proper risk management, maintaining adequate capital, and having a solid trading strategy can help you meet your margin obligations and mitigate potential financial risks while algo trading. If you anticipate difficulty in meeting margin requirements.

The margins may be paid either in the form of Cash (or cash equivalent) or Non-cash Securities:

Cash or Cash Equivalent

SEBI allows investors to deposit margins in the form of Cash (by transferring money from investors’ bank account to Share India’s bank account) or Cash Equivalents (that includes such Sovereign Gold Bonds, Govt. Securities, Treasury Bills and Liquid Mutual Funds etc. which have been approved for the purpose by the Clearing Corporation).

A complete list of all the securities that are presently counted as Cash Equivalents is given in the enclosed file.

In order to receive margin benefit against cash equivalent securities purchased by the clients, clients shall be required to pledge such securities in Share India’s favor by following pledge/re-pledge mechanism. (Note: appropriate training may also be provided w.r.t. pledge/re-pledge mechanism, if required);

The margin benefit against such securities is passed on to the client after deduction of applicable haircut which is generally 10% in case of cash equivalent securities (e.g. against a cash securities’ value of say Rs. 1000/-, margin benefit of Rs. 900/- shall be passed on to the client, after completion of pledge process by the client);

Share India may help clients in buying Treasury Bills (T-bills). The detailed process for the same along with applicable terms and conditions are available at the link: ……………………

Share India may also help clients w.r.t. creation of FDRs against clients’ credit balance available with Share India, the interest for which shall be passed onto the clients after deduction of applicable TDS. The detailed process for the same along with applicable terms and conditions are available at the link: …………………… (Note: In case of FDRs, the clients shall be allowed to use the entire amount of his/her FDR/s for margin purposes);

Non-cash Securities

Besides Cash Equivalent Securities, the clients are permitted to also deposit approved non-cash securities purchased or owned by them towards their applicable margin requirements (Non-cash securities includes such Equity Shares, Bonds and Non-liquid Mutual Fund Units etc. which have been approved for the purpose by the Clearing Corporation);

A complete list of all the securities that are presently counted as approved non-cash securities is given in the enclosed file;

In order to receive margin benefit against cash equivalent securities purchased by the clients, clients shall be required to pledge such securities in Share India’s favor by following pledge/re-pledge mechanism;

The margin benefit against such securities is passed on to the client after deduction of applicable haircut as is mentioned against each security

You can submit a pledge request form. This form typically includes details such as the specific securities you wish to pledge, quantity, ISIN code, and any other necessary information. After receiving your pledge request, Share India will create a pledge on your behalf. This process involves freezing the pledged securities in your demat account, preventing their transfer or sale until the pledge is released. Once the pledge is created, you can utilize the pledged securities' value for meeting your margin requirements. The value of the securities is considered as collateral, which helps cover your margin obligations.

No, you can only pledge 90% of all the securities held in your demat account

Very Important: 50:50 rule


As per regulatory directives, the margin benefit available against non-cash securities cannot exceed total margin benefit available against Cash and Cash Equivalents.


Examples:


A. Total Cash and Cash Equivalents Rs. 100/-


Total haircut value of non-cash securities Rs. 80/-


Total margin available to client for trading purposes Rs. 180/- (Rs. 100/- + 80/-)


(In this case, client is eligible to receive full margin benefit of non- cash securities as higher margin benefit against cash and cash equivalents is available to him)


B. Total Cash and Cash Equivalents Rs. 100/-


Total haircut value of non-cash securities Rs. 150/-


Total margin available to client for trading purposes Rs. 200/- (Rs. 100/- + 100/-)


(In this case, client shall be eligible to receive margin benefit of Rs. 100/- only against non- cash securities as the margin benefit available to him against cash and cash equivalents is Rs. 100/- only)


C. Total Cash and Cash Equivalents Rs. 0/-


Total haircut value of non-cash securities Rs. 200/-


Total margin available to client for trading purposes Rs. 0/-


(In this case, client shall not be eligible to receive any margin benefit against non-cash securities as the margin benefit available to him against cash and cash equivalents is Nil)

Share India allows only 90% of your deposits towards margin obligation because; Share India aims to mitigate the risk of potential losses. Also, we require a certain buffer or cushion to maintain the margin level above the minimum required level. By limiting the utilization to 90% of deposits, we ensure that if market conditions change or the value of your positions fluctuates, the margin requirement can still be met without an immediate margin call. Also, it is important to know that Regulatory bodies such as the Securities and Exchange Board of India (SEBI) set guidelines and regulations for margin trading, including limitations on the utilization of deposits. Share India, as a brokerage firm, needs to adhere to these regulations to maintain compliance and protect the interests of both traders and the overall market.

Advanced

The term "Theta decay" refers to the gradual erosion of the time value of an options contract as it approaches its expiration date. It measures how much the option's value decreases as time passes, assuming all other factors remain constant. Read more → https://utradealgos.com/blog/what-are-options-greeks/

The price of options, also known as the option premium, is influenced by several key factors. These factors help determine the value of the options contract in the market. Here are the main factors that affect the price of options:

Underlying Asset Price: The current market price of the underlying asset has a significant impact on the option premium. For call options, as the underlying asset's price rises, the probability of the option being profitable increases, leading to a higher premium. Conversely, for put options, as the underlying asset's price falls, the probability of the option being profitable increases, resulting in a higher premium.

Strike Price: The strike price is the predetermined price at which the underlying asset can be bought or sold. The relationship between the strike price and the current market price of the underlying asset influences the option premium. In general, as the strike price gets closer to the current market price (for call options) or moves further away (for put options), the option premium tends to increase.

Time to Expiration: The amount of time remaining until the option's expiration date affects its premium. Generally, options with a longer time to expiration have a higher premium compared to options with less time remaining. This is because more time provides a greater opportunity for the option to become profitable. As the expiration date approaches, the option's premium may decrease due to time decay.

Volatility: Volatility refers to the degree of price fluctuations in the underlying asset. Higher volatility generally leads to higher option premiums because there is a greater likelihood of significant price movements, which can result in increased profitability for the option holder. Options on highly volatile assets tend to have higher premiums compared to options on less volatile assets.

Interest Rates: Interest rates can influence the pricing of options. Higher interest rates can lead to higher option premiums, especially for options with longer time to expiration. This is because the opportunity cost of tying up capital in the option increases with higher interest rates.

Dividends: If the underlying asset pays dividends, it can affect the price of options. For call options, dividends can reduce the option premium because the owner of the option does not receive the dividends. On the other hand, for put options, dividends can increase the option premium since the option holder benefits from the dividend payments.

In-the-Money (ITM): If the market price of the underlying asset is:


  • lower than the strike price, the put option is in-the-money.


  • Higher than the strike price, the call option is in-the-money.

  • In-the-Money signifies that the intrinsic value of the options contract is positive, that is if the contract is exercised right now, it will yield a positive payout barring the options premium.

    At-the-Money (ATM): When the market price of the underlying asset is approximately equal to the strike price.

    Out-of-the-Money (OTM): If the market price of the underlying is:

  • Higher than the strike price, the put option is out-of-money.


  • Lower than the strike price, the call option is out-of-money.

  • Out-the-Money signifies that the intrinsic value of the options contract is negative, that is if the contract is exercised right now, it will yield a negative payout.

    Net Options Premium refers to the total amount of premium received or paid for a combination of options positions. It represents the overall monetary value of options premiums associated with multiple options contracts in each strategy or portfolio.
    To calculate the net options premium, follow these steps:

  • Determine Individual Premiums

  • Multiply Premium by Contract Quantity

  • Add Up Individual Premiums

  • Calculate Net Options Premium


  • For example, let us say you sold two call options with a premium of Rs.3 each, sold one put option with a premium of Rs.2, and bought three put options with a premium of Rs.1 each. The calculation of the net options premium would be:

    (2 * 3) + (-2) + (3 * -1) = 6 - 2 - 3 = 1

    In this case, the net options premium would be Rs.1, indicating that the overall premium received for the combination of options positions is Rs.1.

    Strike Price: The strike price is the predetermined price at which the underlying asset can be bought or sold. The relationship between the strike price and the current market price of the underlying asset influences the option premium. In general, as the strike price gets closer to the current market price (for call options) or moves further away (for put options), the option premium tends to increase.

    The term "Expiry Date" refers to the date on which an options contract becomes invalid or expires. It is the last day on which the option holder can exercise their right to buy or sell the underlying asset at the specified strike price. After the expiry date, the option ceases to exist, and its terms no longer apply.

    Latency is how much time you are losing out when you are sending out an order. Basically, it is the time taken by the order to reach the trading destination or exchange, how much time it is taking to process market data, order routing and much more.

    Break Even point is that price point of the underlying at which your strategy would yield a scenario of no profit no loss - hence breakeven. Good thing that uTrade Algos comes equipped with a powerful payoff graph which gives you vital information such as the breakeven point (s), Maximum P&L, margin required and much more ! Know more about it - Payoff curve details:
    https://utradealgos.com/features/payoff-graph/

    Video Tutorial: https://www.youtube.com/watch?v=EzqgTkgfwsI

    Mark-to-market (MTM) is an accounting process used to calculate the value of an asset or position based on its current market price. It is commonly used in trading and investing to determine the unrealized gains or losses on open positions. MTM calculations are commonly used in futures, options, and other derivative trading, where positions are marked to market regularly to reflect their current values. This process helps traders and investors understand their current profitability or potential risks associated with open positions.

    The calculation of MTM involves the following steps:

    Initial Position: When you open a position, its value is initially recorded based on the purchase price or the prevailing market price at the time of entry.

    Market Price Update: As the market price of the asset or position changes, the MTM calculation reflects the updated value. This is typically done daily or as frequently as required.

    Unrealized Gain or Loss: The difference between the initial value and the updated market value represents the unrealized gain or loss on the position. If the market value is higher than the initial value, it indicates an unrealized gain, while a lower market value indicates an unrealized loss.

    Margin Adjustments: The MTM calculation also affects margin requirements. If there is a significant change in the market value and it impacts the margin requirement.

    Account Balance Adjustments: The unrealized gains or losses from MTM are typically reflected in your trading account balance. Positive gains may increase the account balance, while losses may decrease it.

    It's important to note that MTM reflects unrealized gains or losses, meaning they are not realized until the position is closed. Once the position is closed, the final realized gain or loss is determined.

    Backtesting

    Backtesting gives you an indication* of how your strategy would have performed in a specific time period in the past using historical data. You can guage a strategy’s effectiveness in different time periods & market scenarios, improve it to remove any potential hiccups. uTrade Algos also generates detailed reports which gives you crucial insights on your strategy’s performance and execution.

    *Please note that backtesting is only indicative and in no way a surety of your strategy’s profitability in the future.

    No, backtesting is only indicative and in no way a surety of your strategy’s profitability in the future. While backtesting provides valuable insights into how a strategy would have performed in the past, it is important to recognize its limitations which could arise due to different market conditions, volatility, system issues and so on.

    No, backtesting in no way guarantees future trading success. While backtesting provides insights into strategy performance based on historical data, it is merely an indication as it does not account for future market conditions, unexpected events, or changes in market dynamics.

    Calmar Ratio → The Calmar ratio is a gauge of the performance of your strategy. It is a function of the fund's average compounded annual rate of return versus its maximum drawdown.

    Statistically, Calmar Ratio = Net P&L/Max Drawdown

    The higher the Calmar ratio the better with anything over 0.50 is considered to be good. A Calmar ratio of 3.0 to 5.0 is really good.

    Strategy Creation

    With uTrade Algos you can create your own customized strategies by clicking on create strategy present on the home page and entering the parameters required. Once you are done with entering your desired parameters you can either deploy or save your strategy for the future. Resources:

    Video Tutorial - No code Strategy Builder | Advanced Order Form | uTrade Algos

    User Manual - https://utradealgos.com/user-manual/create-portfolio/

    On the nav bar you will get the ‘My Portfolios’ option. Herein you can create new portfolios, monitor exitsitng portfolios, edit/delete them, backtest them or deploy them in the live markets. Resources:

    Video Tutorial - No code Strategy Builder | Advanced Order Form | uTrade Algos

    User Manual - https://utradealgos.com/user-manual/create-portfolio/

    General

    A Trailing stop loss order adjusts the stop price at a fixed percent or number of points below or above the market price of a stock. It is an advanced type of Stop Loss which along with a measure of Risk Management which limits losses, also adds the layer of Profit Protection. It does so by adjusting the ‘Trigger Price’ by moving it in tandem with stock price movement.

    Refer to the examples below to understand better:

    ‘Sell’ Trailing SL:

    Trigger Price moves up | Stock Price Moves up

    Eg. if you buy XYZ Limited

    Buy Price: 50Rs.

    CMP : 55Rs.

    SL: 48

    Trailing SL = 1 TICK where 1 tick = .5Rs

    Now,

    MTM Profit = 55-50 → Rs. 5

    Since Stock price moved up by 5Rs, Trigger price of ‘sell’ Trailing SL will also move up by 5 x 1 tick size = 5 x .5 → 2.5 Rs.

    Therefore, the new Trigger Price = 57.5Rs.


    Similarly,


    ‘Buy’ Trailing SL:

    Trigger Price moves down when Stock Price Moves down.

    Stop loss is an advanced order feature wherein one can set a limit on the loss one can bear. When the trade starts moving against you, you can set a limit to the adverse movement you can bear for this trade and if the limit is breached, you exit the trade thereby limiting your losses.

    Test your strategies using a massive pool of historic data and get a taste of how your strategy would perform in the Live market. uTrade’s - Accurate historical data, Comprehensive Reports and Fastest backtesting engine lets you test the waters before stepping into the real market.

    A drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak. Drawdowns are typically quoted as a percentage.Drawdowns are a measure of downside volatility. The time it takes to recover a drawdown should also be considered when assessing drawdowns. A drawdown and loss aren't necessarily the same thing. Most traders view a drawdown as a peak-to-trough metric, while losses typically refer to the purchase price relative to the current or exit price.

    While you may create and save strategies or subscribe to premade strategies, the conditions for different legs don't go to the live market unless you press the Deploy button. Thus Deployed Strategies are effectively those which are currently running or ‘active’ in the Live market making profits/losses.

    Option strategies are the simultaneous, buying or selling of one or more options/ futures contracts that differ in one or more of the variables such as: strike price, expiry, option types etc., to hedge a position, benefit from arbitrage, or to profit from a spread widening or tightening.

    A leg can be understood as one step of a strategy (which is a combination of multiple steps). Traders often use multi-leg strategies in derivatives contracts when a complex strategy can be deployed to reap benefits despite less confidence in Trend Directions. One important thing to keep in mind while implementing Multi leg strategies, is the robustness of the Trading Engine and reliability of price execution. Lucky for uTrade users that they can leave the execution part on our Advanced trading engine and focus their energy on creating a market-winning strategy for themselves!

    A payoff curve is a graphical representation of the potential outcome and its resultant Payout generated from your strategy. It indicated P&L at different possible underlying price movements, usually intended to depict the outcome at expiry. On the X-Axis is the Price of the underlying, while the Y-axis depicts potential Profit & Loss.One can infer important information about their strategies such as: Break Even point, Max P&L, Options Premium etc.

    Pre-defined strategy forms are forms for various popular Options Strategies such as: Bull Call spread, Straddle, Strangle etc. which are pre-filled with all the necessary basic inputs to be able to execute that particular strategy. For example you select a 'Bull Call Spread' --> Now the form would factor in the fact that:1. It's a 2-legged strategy 2. One leg would involve buying an ATM call option, while the other would involve selling an OTM call OptionAnd thus, would come prefilled with this information. Now, isn't this amazing! ‍We've incorporated a bunch of strategies so that you are equipped with a strategy in various market conditions.‍

    We've incorporated a bunch of strategies so that you are equipped with a strategy in various market conditions.

    Some Popular options strategies you can create are:
    • Bull/ Bear Call Spread
    • Bull/ Bear Put Spread
    • Straddle & Strangles
    • Long/short Butterfly
    • Iron Condor
    • Straddle
    • Strangle
    and many more!

    With custom modifications available the scope to create newer and newer strategies to beat the market is virtually limitless!

    So keep experimenting, but remember:

    Create a Strategy Logic → Backtest → Paper Trade → Setup Risk Management → Deploy on Live Market

    Continually Improve the strategies by analyzing the results generated at each step.

    To put it simply, Option Greeks are mathematical computations that can give important indications that can be used to gauge different factors that affect the price of an options contract. Understanding Option Greeks helps you make more informed decisions about which options contracts to consider for trading, and when to trade them.

    A high-water mark is the highest level in value an investment account or fund has reached. A high-water mark is often used as a demarcation point in determining performance fees that an investor must pay.
    Hidden Footer Popup