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Advantage AxisDirect

Products

Yes, in exchange BSE, Mutual Funds - SIP can be placed.



Please note that, on placing a SIP order through Mutual Fund Exchange mode for a future date, the exchange will trigger the first order on the request date and pull funds from client`s account. Moreover, MF-SIP order can’t be modified .



In the exchange mode, the SIP order must be placed 30 days before the SIP start date (date on which amount is debited from customers' bank account) Example: If order is placed on 10th Jan then start date should be 10th Feb or onwards. (The gap between the start date 10th Jan and SIP start date should be equal to or greater than 30 days).

The products offered by AxisDirect are:

 

1.Cash - Transact for delivery: 'Cash' is a facility used for undertaking delivery based transactions. You have to pay the full order value while placing a buy order. You will get the shares in your demat account on the T+2 nd trading day.

 

Similarly you need to have the full quantity of stocks in your demat account before selling in 'Cash'  while placing a sell order.

 

2.Inter-Settlement (IS) - You place a buy order in Cash product, it takes T+2 days for the shares to get credited in your Demat account. IS a trading facility which can be used for selling the shares that have yet not been credited in your Demat account.  Eg. You have placed buy order for 100 shares of Axis bank on Monday. You allocated Rs.1,50,000 in Cash limits to place this order.  100 shares of Axis Bank are to be credited to your demat account on T+2 days i.e. Wednesday. IS product from AxisDirect allows you to sell the shares on T+1 and T+2 days even before the shares have been credited in your Demat account.

 

3.Encash - Get immediate/emergency cash by selling stocks on Encash is a facility that helps you to receive the funds on your sale transaction on the transaction day itself. In case it is a Bank holiday on the transaction day, the funds will be credited on the next Bank business day. So, whenever you require funds in an emergency, just sell the shares available in your demat account and get the credit in your linked bank account on the same day.

 

4.Intraday - Buy and Sell on same day with low margin. Intraday is a facility which lets you to take positions in shares without taking  delivery. You square off the positions on the same day before a pre-defined time with the intention to book profits. Such profits will be credited on T+2 working days in your linked Savings bank account.

 

The benefits of Intraday transactions are:

 

a) If you do not have funds equal to the transaction value, AxisDirect allows you to trade by blocking a small margin amount (20%-50% of the total order value depending on the scrip).

 

b) The transactions occur on the same day so funds for the transactions are not debited and transferred from your linked Savings account. Funds will be debited only in case of a loss or if you decide to convert the position into delivery.

 

c) You can Short Sell that is sell shares even if the scrip is not available in your demat account and then buy to cover (second leg of the transaction).

 

d) If you do not square off the position by 3:00 p.m for any reason, it will be squared off by AxisDirect. Example: You buy 100 shares of Axis Bank @ Rs.1500 in intraday. The funds required to be hold marked will be approx. 20% of the total order value. So, you should have at least Rs. 30,000 (Rs. 1,500*20%*100) in your linked savings bank account. You are able to order 100 shares of Axis Bank at Rs. 30,000 against the actual order value of Rs. 1,50,000 (Rs.1,500*100).

 

5.Cover - Place Buy and Sell orders simultaneously and get better leverage based on your choice. Cover is a facility which helps to limit the losses (if any) on intraday trades. It helps in transacting at a lesser margins. Cover can be placed by creating  two opposite orders on the same scrip. The first order has to be a market order and the second order is a stop loss order at limit price. The stop loss order (second leg) minimizes the risk of losses. In fact, such orders help you know the maximum loss in a position in advance. Such orders also require lesser margins as compared to 'Cash' and Intraday transaction as the order value range for the second order is fixed.  Example, if you wish to place a Cover for 50 shares of Axis Bank, the order screen will ask you to place two orders. The first order is a market order at say Rs. 1500 and the second order will be a stop loss order where you will have to define the limit price and the trigger price.

 

6.E-margin - Buy on margin and square off till T+90 in both the exchange. E-margin is a leveraged trading facility. Positions created under this facility can be squared off or converted to delivery till the T+90 or before a specified time set by AxisDirect. Unlike 'Cash', you do not have to pay the full order value for E-Margin orders. So, you can take positions with lesser margin amounts with an option to keep the position open till a maximum of T+90 days.

 

7.Futures - Derivatives contract where buyer and seller both have rights and obligations to honor the contract. It is a contract to buy or sell an underlying asset at a specified future date. These contracts are traded and settled on exchanges. The quantity (Lot size) and the Settlement date (Expiry date) is fixed in advance. In India, futures are cash settled. It is a high leverage product as compare to cash market. (High Risk, High Return). E.g., margin required for taking position of 250 shares of Axis Bank @ Rs. 1,500 is Rs. 3,75,000 in Cash segment. If the price increase to Rs. 1,600 you make a profit of Rs. 25,000 (250*100) in Cash market. In  Futures market, you pay a small margin  to take a futures position. say, you pay say only Rs. 75,000 for 250 shares of Axis Bank. If the price of Axis Bank increase to Rs. 1,600, you still make a profit of Rs.25,000 with a margin of just Rs.75000.

 

8.Intraday Futures - Same day square off of Futures Derivatives contract.Intraday Futures is a facility which allows you to take futures position with the intension of squaring off the position on the same day before the market closes . Such profits will be credited on T+1 working days in your linked Savings account. The benefits of Intraday Futures is that the margin requirement is lesser than the regular Futures trading  allowing you to trade in higher volumes. You can Short Sell Futures, that is sell first and then buy to cover (second leg of the transaction). If you do not square off the position by 3:00 p.m for any reason, it will be squared off by AxisDirect. Example: You buy 250 shares of Axis Bank Futures @ Rs.1,500 in intraday. The funds required to be hold marked will be approx. 15% of the total order value. So, you should have at least Rs. 56,250 8(Rs. 1,500*15%*250) in your linked savings bank account. You are able to order 250 shares of Axis Bank at Rs. 56,250  against the actual order value of Rs. 3,75,000 (Rs.1,500*250).

 

9.Options - Derivatives contract where one party has a right to buy/sell the underlying, while the other party has an obligation to buy/sell. The person with the right is called the holder/buyer of the option. The person with the obligation is called the writer/seller of the option. Options contracts can be classified under two categories based on "rights" and " exercise". There are 2 types of Options contract based on right– Call Option & Put Option. Buyer of the option needs to pay only the premium and his risk is limited. Seller of the option needs to pay the margin and his risk is unlimited. Exercise based options are- American Options & European Options.

 

10.Collateral management - Hold shares for additional margin limits.Collateral management is a facility through which you can  utilize your idle shares to get trading limits for margin products like intraday, futures etc.

 

11.Subscribe for IPOs/FPOs – Easier way to participate in the primary market issues. IPO is initial public offering. When a company raises funds by floating its shares to the public for the first time, it is known as IPO. IPO is floated in the Primary market. Make online applications to IPOs/FPOs through AxisDirect without having the hassle of paperwork.

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