People who
trade in both Equity and Commodity market have to transfer money to 2 trading
accounts one of Equity and the other of Commodity. This is a huge obstacle as
it results in regular transfers between these accounts which is time-consuming,
costly, and also leading to loss of opportunity. Addressing this problem,
Tradejini has introduced a platform where you can trade in both Equity and
Commodity on a Single Platform.
Tradejini is
the only discount broker in India that offers you both Equity and Commoditytrading on a single platform.
Let’s
understand the above statement with an example:-
Mr. A trades
in both Equity and Commodity segments, let’s say he has Rs. 10,00,000 in his
bank account, he decides to add Rs. 5,00,000 in Equity Trading Account and Rs.
5,00,000 in Commodity Trading Account. Refer table 1.1 for clear understanding.
1.1
|
Account
|
Starting
Balance
|
|
Savings account
|
10,00,000
|
|
Equity trading account
|
5,00,000
|
|
Commodity trading account
|
5,00,000
|
On a Monday morning
he decides to enter into 2 positions one inequity and one in the commodity. The margin required to enter into both these positions is Rs. 5,00,000 each. Refer
table 1.2.
1.2
|
Account
|
Balance
|
|
Savings account
|
0
|
|
Equity trading account
|
5,00,000
|
|
Commodity trading account
|
5,00,000
|
At the end
of the day he incurs a profit of Rs. 50,000 in Equity and a loss of Rs. 40,000
in Commodity.
He can
easily carry forward his trade to the next day in equity because he has
sufficient margin but he will have to add Rs. 40,000 more from his bank account
to his commodity trading account to carry forward his position to the next day,
as he is supposed to maintain Exchange Specified Margin. Failing to maintain
the Exchange Specified Margin the broker will square off the position at the
end of the day.
But as you
can see he has insufficient balance in his savings account to pay for his trade.
Hence the opportunity is lost. Refer to table 1.3.
1.3
|
Account
|
Balance
|
|
Savings account
|
0
|
|
Equity trading account
|
5,50,000(5,00,000+50,000)
|
|
Commodity trading account
|
4,60,000(5,00,000-40,000)
|
Through Tradejini:-
Mr. A does
not have to depend on his bank account to add the margin to his trading account;
he can easily use the required margin from the profits of his equity trading account
to enter into a trade-in Commodities. Hence, enabling Mr. A to exploit the
opportunity effortlessly. Refer to table 1.4.
1.4
|
Account
|
Balance
|
|
Savings account
|
0
|
|
Equity trading account
|
5,10,000(500000-40000)
|
|
Commodity trading account
|
5,00,000(4,60,000+40,000)
|
As you can
see clearly, whether you are trading only in Equities or trading in both
Equities and Commodities segment, Tradejini has an upper hand over other
brokers.
So it is
totally up to you whether to choose a broker who provides extensive services or
the one who provides half baked services.
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