SAMCO Option Plus offers a margin ranging from 3x to 20x. Various market factors are taken into consideration while deciding the leverage percentages.
Let’s dive deeper into Option Plus in SAMCO.
OPTION PLUS SAMCO
SAMCO is a discount broker, which means its primary focus is on reducing trading costs, i.e., brokerage charges. Further, they don’t provide much information or analysis to the traders.
Before the concept of discount brokers got introduced in India, every executed trade was subject to high brokerage charges by the full-service brokers. With the introduction of discount brokers, trading charges get reduced significantly.
Extending high margins is a great idea because it enhances the trading power when the broker provides leverage to its customers.
SAMCO Option Plus is a Plus series product that aims to provide leverage for Intraday trading in Options. It is available for both Nifty50 and NiftyBank indices.
In Options trading, while using Option Plus, the more contracts you trade in one order, the lesser brokerage charges you pay. The stocks with higher Liquidity are more likely to be preferred for trading in Option Plus in SAMCO.
A SAMCO margin product is beneficial for the traders who aim to trade in more than their capital capabilities. Their goal is to make huge profits via options trading and return the debt to the broker.
If a trader forgets to square off the trade, the latest by 3:14 PM, it is automatically squared off at 3:15 PM by the RMS team at SAMCO.
Volume and Liquidity of the share are two of the most critical aspects in deciding the margin percentage.
SAMCO option plus is available for trading in actively traded Stocks and Indices. Commodities and Currencies are not yet permissible with this leverage product.
Further, you might be wondering who is eligible to avail of this exclusive product.
The answer is pretty straightforward. Any SAMCO registered user is eligible. They can subscribe to the Option Plus product by logging into the SAMCO Star or SAMCO Back Office portal to pay for the subscription and get it activated.
SAMCO Option Plus extends up to 3x leverage for buying options and up to 20x for selling options. SAMCO allows traders to grab intraday opportunities at low margins. This extra capital gives them more positions to trade.
For calculating the contract value for SAMCO Option Plus, a simple formula gets used. It is as follows:
For Buying Options = Price (Premium) ✕ Quantity
For Selling Options = (Strike Price + Premium) ✕ Quantity
After activating the subscription of SAMCO Option Plus, the trader has to choose CO (Cover Order) or SAMCO Bracket Order (BO) to avail of the leverage facility.
There are a few conditions where the broker can reject the order. These reasons are:
In the case of Margin Shortfall, the order gets canceled. For example, you wish to short one lot of NIFTY with the SAMCO Option Plus subscription, the margin required is ₹10,000, but the margin amount in your trading account is ₹9,000, the order will get canceled.
If the Scrip is unavailable for BO and CO product type, the order will get rejected. For example, if intraday leverage is not available for a stock you wish to trade, the request automatically declines.
Moreover, you can not convert these intraday trades into positional ones.
Lastly, the risk involved in Margin trading is very high. If you win, it’s okay, but if you lose the capital and the leverage amount, it gets ugly and nasty for the trader. So, before getting lured into this fantastic opportunity, make sure you are secured and assured of your investments.
The subscription for SAMCO Option Plus is open for all registered users. To activate this Plus Series product, you have to log in to the SAMCO Star portal. Pay the subscription fee, and you can start using the facility.
The annual subscription fee is ₹999 + 18% GST. The subscriber can choose to pay it via monthly installments of ₹149 + 18% GST.
Another exciting thing about this subscription is that the renewal is not automatic. So, no unwarranted debits from your account.
Irrespective of what product you trade and use to ease your trading experience, SAMCO Securities has fixed a nominal charge. For every executed trade, the maximum brokerage charge borne by the trader is₹20.
Yes, you read that right.
The brokerage charge can be lesser than this, but not more. No matter how much capital you trade, this charge remains the same.
SAMCO OPTION PLUS FAQ
Most searched questions on google about SAMCO Option Plus are many, but some of the most important ones are:
What is Option Plus in SAMCO?
Option Plus is a Plus series product that extends the facility of margin for the subscribers. It gets activated for an annual subscription fee of ₹999 + 18% GST.
2. Which financial instruments are available for trading with SAMCO Option Plus?
You avail of this product for actively traded stocks and indices. It is not for trading in Currencies and Commodities.
3. How to subscribe to Option Plus in SAMCO?
You can subscribe to Option Plus in SAMCO by logging on to the back office portal known as the SAMCO Star portal and paying the necessitated fee.
4. What is the leverage provided in Option Plus SAMCO?
The table for this information is below:
SAMCO Option Plus
Up to 3x 33.3% of Premium Value
Up to 20x 0.5% of Contract Value
SAMCO Securities is a discount brokerage firm founded by Mr. Jimeet Modi to ease the trading procedures and minimize the trading charges. It facilitates the customers with a variety of products and services.
SAMCO Option Plus is a Plus series product introduced to provide margins for traders. SAMCO has other products in this series, and they all cater to different financial products.
You can subscribe to Option Plus in SAMCO for an annual subscription fee for SAMCO’s back office portal.
For more details about the product and to take the final call about the subscription, go through the product’s terms and conditions thoroughly.
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