What is Twin Advantage account?
Margin trading allows you to buy stocks without paying for the whole amount. You only pay a portion of the market price. The remaining is paid by the broker. Usually, this margin finance is offered on the basis of your track record. Even then, the exposure is only allowed on cash.
Kotak Securities offers you Twin Advantage, a trading account that provides you with additional exposure. You can now get margin financing on existing assets like stocks as well as cash.
- Flexibility to trade
- Higher exposure
- Unlock portfolio value
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What are the benefits?
Four times exposure: If you have Rs. 50,000 in your account, you will be allowed to trade for Rs. 2,00,000. This way, you will not be financially limited.
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Stock exposure: If you have stocks worth Rs. 75,000 in your account, you have additional Rs. 3,00,000 to trade. This means, you have more funds than a usual account offering margin finances.
Why should you get Twin Advantage account?
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Flexibility: Limited cash holds you back from taking advantage of market ups and downs. Margin trading eliminates this. You can thus trade as much as you want and when you want.
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More profits: With more funds in hand, you can invest more. This multiplies the number of profits you make. For example, you have Rs. 10,000 on hand to buy a stock worth Rs. 100. You use margin financing to buy 200 stocks for Rs. 20,000. Suppose the stock price goes up by 25%, the value of your stocks is now Rs. 25,000. Of this, you only need to pay back Rs. 10,000 and pocket Rs. 15,000. This increases the value of your portfolio by 50%.
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Diversification: With more funds in your kitty, you can buy more assets of different kinds. This helps you minimize your risks by diversifying your portfolio.
+ Expand AllFrequently Asked Questions (FAQs)
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Q What is the minimum amount of cash you need to have?
A
You need to have minimum Rs. 50,000 in your account. -
Q What is the minimum amount of stocks you need to have?
A
You need to have stocks worth Rs. 1,00,000. For this, you will get up to 75% margin. The valuation of the stocks, the multiples of margin available will constantly be revised.
