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Paytm Money Launched Margin Pledge Feature

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News Desk, News Nation 360 : India’s leading digital ecosystem for consumers and merchants Paytm announced that its wholly-owned subsidiary Paytm Money has launched the ‘Margin Pledge’ feature. The feature will allow users to pledge their existing stocks and ETFs in return for a collateral margin that can be used for trading in stocks, ETFs, futures, and options. To understand this with an example, let assume an investor who holds shares worth Rs 2,00,000. Now a trading opportunity arises but due to lack of funds, the investor is unable to seize it. The user can pledge his or her existing stocks to the broker. The broker deducts a haircut of say 20% from the total value of stocks, ie Rs 40,000 and gives the remaining value of Rs 1,60,000 as a collateral margin which can be used for trading opportunities. F&O and Intraday traders are amongst the major sources of revenue for Paytm Money. These traders often need

leverage to take advantage of multiple trading opportunities. The Margin Pledge feature will make the platform more attractive to these users and allow them to increase their trading activity. A minimal charge of Rs 10 + GST per stock will be imposed on each pledge and unpledged request. The launch of the ‘Margin Pledge’ feature has the potential to increase revenues both directly and indirectly for Paytm Money. Varun Sridhar, CEO, Paytm Money said that at Paytm Money, they have leveraged technology to continue improving user experience and empower them with all potential opportunities. The launch of the Margin Pledge feature will allow investors to use their existing portfolio to take advantage of new trading opportunities. They have designed the feature such that users can complete the entire process within a few clicks making their trading experience seamless. 

Pic : Courtesy

Report : Anustup Kundu