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HDFC Securities e-Margin Trading Review

Published on Monday, May 20, 2019 by Chittorgarh.com Team

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HDFC eMargin is a Margin Trading Facility (MTF) offered by HDFC Securities to provide extra buying power advantage to its customers. With this order type, investors are only required to pay a part of the total trade value on select stocks. The remaining amount is loaned from HDFC Sec at a small interest cost calculated on a daily basis. HDFC charge interest of 0.05% per day on outstanding amount.

Investors can create positions which can be squared off or turned to delivery until 180 days from the trading date or as specified. This helps them maximize their profit potential with low investments.

By paying a small amount of money, investors can purchase a stock on BSE and NSE exchange. If the price of the stock fall within t+180 says, the order can be converted into delivery after paying the remaining amount for the order.

About HDFC Securities

HDFC Securities is a full-service stock broking company in India. It is a subsidiary of HDFC Bank and offers both offline and online trading services. The company has over 260 branch offices in all major cities across India.

HDFC Securities Key USP is its strong lineage as a part of the renowned HDFC group, 3-in-1 account and research advisory. As a full-service broker, the company offers dedicated research services to its customers. The research team regularly provides stock recommendations, investment ideas and market insights to its customers.

What are the benefits of E-margin?

HDFC Securities e-Margin is one of the key offerings to help customer trade more with the lesser funds. Here are the benefits of using E-margin product for investors:

Not required to pay full order value while placing e-margin order.
Place an order with lesser margin and continue the position till T+180 days.
Amplify profit and enhance the purchasing power of investors.
Gain from the short-term price movement of stocks
Position can be leveraged with both, cash or collateral options.
E-margin is regulated by SEBI and Stock exchange.

HDFC E-Margin Features

Margin product provides higher leverage to traders. Here are various features offered by HDFC Securities under E-margin facility:

Open positions can be continued up to T+180 days if you have agreed to revised T&C at HDFC securities.
Investors can create a position with margin amount for the securities which are not available in the derivatives segment.
Securities available to trade under MTF option are predefined by stock exchanges and SEBI from time to time.
The positions under MTF can be collateral for cash or shares.
The balance obligation of the client is funded by the stockbroker on a specific stock exchange.
Investors can utilize the ultra-short term opportunity without share delivery.
The stockbroker charges delayed interest of 0.05%/day for the outstanding amount until the position is settled down by the investor.
The e-margin facility can be accessed with a market order or limit order type.

How does HDFC E-margin order facility work?

Here is the step-by-step process to trade in e-margin product type offered by HDFC securities:

Step 1: Log into the HDFC trading account through the website or mobile app with user id and password. Post login, you are directed to the home page.
Step 2: Click on the 'Buy' tab and select the exchange as BSE or NSE. An equity option is selected by defaults.
Step 3: Choose product type as 'E-margin' from the drop-down list.
Step 4: Now, enter the first few alphabets of the stock you want to buy. Select the stock from drop-down options. After selecting stock, LTP (Last Traded Price) will be auto-populated.
Step 5: Select order type as market or limit.
Step 6: Enter the price and quantity for the stock you want to trade.
Step 7: By clicking on 'Know Your Margin', traders can get the margin value required to place E-margin order.
Step 8: Click on 'Place Order' to confirm your order.
Step 9: After order placement, you can track your order in the order book.
Step 10: To square off the position on or before 180 days from the trading day, select 'Open Positions'. You can also convert e-margin open positions to delivery if you have adequate cash limits.

e-margin order hdfc securities mobile app

HDFC E-Margin Demo

How to Trade Using E-Margin Facility?

E-margin is a useful trading facility offered by HDFC Securities to its customers. HDFC provides demo videos explaining the features of the facility and how to trade using E-margin order.

Steps to Watch HDFC E-margin Demo

Visit the website of the HDFC Securities
Click on the video icon on the top right side menu
The page lists all the demo videos provided by HDFC. Use the filter available on the right side and select 'E-Margin Order' to watch the demo

HDFC E-Margin Trading Facts

E-margin facility is offered only on eligible stocks traded on stock exchanges.
Margin amount is taken in the form of cash, cash equivalent or eligible shares as accepted by HDFC Securities.
Traders should hold sufficient amount in the bank account to fulfill additional margin requirements to avoid closing the open position.
HDFC Securities has a maximum limit (quantity) for shares to hold under collateral position.
Mark to Market process runs on a daily basis for the open positions under E-margin.
This product is available only for resident Indians.
Around 30% to 60% margin is required to pay for an e-margin facility depending upon the scrip.
E-margin order can be placed through Website, LITS, Mobile app, Branch Dealer Desk, Call N Trade etc.
All unexecuted orders will be squared off on the last day of trading duration after 2.45 pm.

Conclusion

E-margin facility is an advanced product type offered by HDFC Securities to help customers grab the emerging opportunities in the stock market for short term duration. It also empowers traders by offering extra purchasing power and added time for the open positions. Investors have T+180 days in the e-margin facility to convert the open position into delivery.

Read more about HDFC Securities