The first step towards understanding any topic is to understand the terms related to it. So to understand the subject of SAMCO Commodity Margin, break the phrase down.
SAMCO Securities is a well-known discount broker in India. This broker firm has managed to save more than ₹561Cr of brokerage. It has extended low brokerage options to traders and investors across the spectrum.
The answer is straightforward. When someone trades in commodities from the primary economic sector rather than investing in manufactured products, it is known as Commodity Trading.
Coming to the last term – Margin. Margin to the stock market industry is what loans are to the bank industry.
Margin is the amount you borrow from the stockbroker to trade when you are low on finances, or an opportunity to make huge profits that lean over your head.
SAMCO Margin Calculator For Commodity
SAMCO Securities extends the margin facility in a variety of trading and investment segments & the commodity segment is one of them.
This stockbroker offers a long-list of commodities to trade. From gold to cardamom, silver, aluminum, and many more, SAMCO has diversified its list of commodity trading over time. The amount of margin gets decided by taking into account a variety of aspects related to that commodity.
Since a stockbroker provides the facility of commodity margin, it takes into consideration the volatility of the commodity & other risk factors of the market.
SAMCO Commodity Margin has three products that provide margins for varied time periods & requirements. These products are as follows:
NRML stands for Normal. NRML Margin orders are majorly for the derivatives segment to carry forward the position. When a trader chooses to trade in NRML, it means he can hold it till the contract ends.
A trader selects this SAMCO commodity margin when he wishes to hold the position overnight or until the contract’s expiry.
The most significant advantage of this margin product is that the trader doesn’t need to worry about auto square off. Auto square offs’ might lead to huge losses and, thus, must be avoided.
SAMCO Securities is a broker categorized as someone who doesn’t levy extra brokerage charges on the trades facilitated by the SAMCO MCX margin.
2. SAMCO Commodity Intraday Margin
This product is popularly known as MIS or Margin Intraday Square off. On the portal, too, you’ll have to click on the MIS option for Intraday trading in the Commodity segment.
The position or order under this SAMCO Intraday Margin product has to be squared off twenty-five minutes before the closing bell of the commodity trading market.
If the trader forgets to square off the trade by any chance, the RMS team at SAMCO Securities automatically squares the position off.
MIS order is preferred by traders in Intraday trading, as they do not require to be available at the portal to square off the trade by the day end. The trader’s not required to fret due to this facility of automatic square off.
Cover Order is the margin product preferred when a trader wishes to leverage more than what MIS order provides.
MIS order & Cover order are identical twins with a small difference in the DNA.
Cover order is precisely what MIS order is, but the former also takes into account the Stop-loss order. A massive cushion of safety is the SAMCO Bracket Order or BO.
As soon as the market tends to move in the opposite position, the bracket order comes to the trader’s rescue & limits the trader’s loss.
SAMCO Securities offers the SAMCO MCX margin for approximately 100 commodities across all SAMCO margin products.
If you have good contacts and want to earn a good amount of money. becoming a partner with SAMCO Sub Broker and earn a commission.
With so many fish in the pond, choose your broker wisely. Something that might not seem important today could become a big reason for issues in your trading experience tomorrow.
In addition to levying the lowest brokerage charges, SAMCO Securities extends the facility of the highest percentage of margin. While trading in the commodity segment, choose the correct order option & avail the margin according to your need and requirements.
We sincerely hope that this article provided you with detailed information about the variety of SAMCO commodity margins.
Trade wisely, earn highly!
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