MARGIN TRADING FACILITY

Your CREDIT CARD for the CAPITAL MARKET

In today’s world, credit cards are quite common and many people hold more than one. Its popularity lies in the fact that credit cards are very convenient for making payments. It can also be used occasionally as a source of short term money. The best part is that credit cards while conferring the RIGHT to use it ANYTIME, does not cast any OBLIGATION to use it. Most prudent clients keep credit cards more as a standby funding source for use in emergencies.

As an active investor you would occasionally have experienced a need for a flexible scheme of funding which helps you make the most of opportunities and meet short term needs. Margin Trading Facility (MTF), a scheme approved by SEBI, provides a convenience very similar to Credit Cards. It confers the RIGHT to seek instant funding up to 50 %, with out casting an OBLIGATION to borrow. You need to pay interest only for the amount of funding availed at just 55 paise per thousand per day (or Rs. 55 per lac per day), be it even for a day at a time.

As with credit cards, MTF is more about the confidence of having an assured source of funding, which you can avail anytime you need. When used prudently, MTF can help improve trading profits and minimize losses that may arise from the inability to pay on due dates. You may use MTF in any combination, with any of your preferred modes of trading, as a backup source of liquid funds. A few important points to note when using MTF are

1. Use MTF as you would use your CREDIT CARD - for convenience.

2. You can repay in part or in full - any time, even the next day -to reduce interest cost.

3. Diversify your holdings and maintain some cash in reserve to meet margin calls that may arise due to abrupt dips or erratic trends in the market.

4. Enter each trade in MTF with a clear short time span (preferably of less than 15 days) and a clear STOP LOSS position in mind.

5. Book profits at every opportunity (even intraday, where possible), to minimise borrowings and to optimise returns.

6. Be prepared to exit any trade decision under MTF, which may have gone wrong - even booking loss if need be - at the earliest

7. Remember - No one uses a credit card for long-term borrowing. Use MTF only when required and for very short periods at a time.

We are not suggesting that you borrow, but rather that you register for MTF so that you have a right to borrow whenever you need. As an active and informed investor, you will appreciate the necessity for an assured source of funding while trading in volatile markets.

All that is required is to do a one time registration at the branch.

In case you need funding for a longer period, you may choose to avail LAS from Geojit Credits Pvt. Ltd. at attractive rates.

For more details and assistance please call us at 09349160757. Email id - geojitcredits@geojit.com