Any individual, HUF (Hindu Undivided Family), proprietary firm, partnership firm or a corporate can open online trading account with us.
It is very simple! Fill your contact details in the form above and our team will get in touch with you within shortly
To open an account, following documents are required to be submitted along with filled up client registration form:
Yes, it is compulsory to have demat account with us for Internet Trading.
An important step to understand in dematerialization is how to open a demat account
Dematerialization is the process of converting your physical shares into electronic form. Today, over 95% of all share ownership is in demat form only and 100% of all trades happen only in demat mode. When you hold physical shares, you are first required to open a demat account with your DP after completing the required formalities.
Once the formalities are completed, your demat account is opened and ready to use. In case you are holding physical shares, you can dematerialize them by giving application in demat request form (DRF) to your DP. The DP will first check the DRF is complete in all respects and then send the certificates to the registrar for verification.
The registrar maintains records of shares and securities on behalf of companies. For Karvy is the registrar for Reliance Industries. So, if you want to get your Reliance shares dematerialize, then your DP will send it to Karvy Registry office in Hyderabad. The registrar will first check that the shares are transferred and held in your name only.
The names in the share certificate must precisely match with the name in the demat account; otherwise the DRF will be rejected. Then the registrar will check if the signature in the DRF matches with signature in the master record of the company. Lastly, the registrar will also check that the share certificates are not fake or duplicate.
Once all these checks are completed the DP will get a confirmation from the Registrar. After the original share certificates are defaced and the equivalent number of shares are credited to you demat account. The entire process of dematerialization takes around 15-20 days before the credit comes into your demat account.
Demat account is where you hold shares and other securities in electronic form in the form of an entry in your demat account. A demat account can hold shares as well as other securities like bonds, ETFs, gold bonds, closed ended mutual funds , open ended funds etc. Demat account is a statement of ownership and the value of your demat account represents your wealth.
Step 1: ACCOUNT OPENING
The first step to opening a demat account is to procure the DP form and fill it up. The form can either be downloaded from the website or can be procured from the offices.
Step2: EXECUTING THE DP AGREEMENT
The second step is the actual filling up of the form and the execution of the DP agreement. The demat account represents an agreement between you and the DP acting on behalf of CDSL or NSDL. You are not only required to fill up all the details but also sign at various places in the demat account opening form. As a prudent customer you are required to understand the terms of the demat account including all charges as well as your rights and liabilities before you sign on the demat account agreement.
Step 3: DOCUMENT SUBMISSION
The final step is documentation. Your photograph and your PAN card are pre-requisites. Additionally, you are also required to give a proof of identity with photograph included (passport, Aadhar card, driving license, Voter card etc) and a proof of residence (government document with latest address, land line bill, electricity bill, water bill, IT assessment order, credit card bill etc). You must submit self-attested photocopies and carry the originals for verification. Alternatively, you can also avoid all these hassles by opening an online demat account via Aadhar authentication and OTP confirmation. Once the account is opened online, you just need to In Person Verification (IVP) once before you can start operating your demat account.
A demat account is meant to simplify the way you hold and transaction in securities. You are saved the hassles of maintaining physical certificates, getting physical transfers done etc. Demat does away with many risks like bad delivery, share certificate mutilation, duplicate certificates, fake shares etc.
Demat account charges are dicussed after understanding your trading pattern kindly get in touch with us and our executives will contact you shortly regarding the same. There is no account opening charge and the annual maintenance charges are also waived for the first year in most cases. You are charged demat debit charges but demat credits are free of cost.
The demat account gives you a simple account opening process with the facility to open your account fully online. We also offers seamless connectivity with your trading account and bank account to make all your transactions seamless.
Once account is opened, We dispatch a welcome kit to its customers which contains Welcome Letter, Information Brochures, software/demo CD etc. so that you do not face any problem while operating your trading account.
We also provides Call-N-Trade services to its customer so that customer can place order if he/she does not have access to internet.
You can trade on NSE, BSE, MCX, NCDEX and MCX-SX on single platform.
Yes, you can transfer funds online. All the major banks available are accepted ,through which you can instantly transfer fund to your trading account if you have bank account with any of the mentioned banks. You need to register bank account, in your name, with us for availing this facility and multiple banks can be added.
Yes, you can submit a Cheque but buying limit would be provided to your trading account once the same is cleared & confirmed by the bank.
Delivery Trading is basically delivery based trading wherein 100 percent Funds / Shares are blocked at the time of placement of the order. i.e. if you want to buy shares you should have the entire amount of funds in your cash limit and if you want to sell shares the same should be available in your demat account. For sell positions, your trading limits will be increased immediately with the sell trade value. This will enable you to take further positions in the market.
In Margin trading / Intra day trading, if you place a buy order then you will have to place a sell order or vice versa same day i.e. in same settlement cycle. You are required to close all your intraday positions prior to 20 minutes of market closure. SMC may square off, whenever it is applicable, 20 minutes prior to normal market closing. You can also convert margin orders to delivery if you have sufficient buying power available in your trading account.
When the margin position is closed out (either by squaring off or converting to delivery), the proportionate margin blocked on the position so squared off is released back and added to the limits.
In simple words, it is a contract to exchange one currency for another currency at a specified date and a specified rate in future. Therefore, the buyer and the seller lock themselves into an exchange rate for a specific value or delivery date. Both parties of the futures contract must fulfill there obligations on the settlement date. All settlements go through the exchange.
In simple words, it is future contract where there is an agreement between two parties to buy and sell a specified quantity & defined quality of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract. All settlements are done through well regulated commodity exchanges.
Yes, SMC Online clients can place AMO orders.
Yes, SMC Online clients can place BTST orders.
Yes, you can modify or cancel an order any time before execution. You can do this by accessing the Order Book page where you have the option to modify or cancel the order. You would not able to modify or cancel order if order has been sent to exchange & confirmation is awaited.
You get instant trade confirmation on your trading portal. Apart from this, a soft copy of Contract note is sent to your registered mail id & hard copy of contract note is dispatched on your address (registered with us). You will also receive an SMS of your net obligation, at the end of trading day, if you have provided us your mobile number. You can also check your online back office, round the clock, to track trading done by you.
Online Trading account comes with Online IPO and Online Mutual Fund features. Thus, with single registration, you can apply for IPOs online & can transact in a large number of mutual fund schemes available online. You can also access your back-office online anytime anywhere to track your investments.
Foreign exchange or Forex is the simultaneous buying of one currency and selling of another. Currencies are traded through a broker or dealer and are executed in currency pairs. For example: the Euro and the US Dollar (EUR/USD) or the British Pound and the Japanese Yen (GBP/JPY). The Foreign Exchange Market (Forex) is the largest financial market in the world, with a daily volume of over $4 trillion. This is more than three times the total amount of the stocks and futures markets combined. Unlike other financial markets, the Forex spot market has neither a physical location nor a central exchange. It operates through an electronic network of banks, corporations, and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one time zone to another across the major financial centers. This fact - that there is no centralized exchange - is important to keep in mind as it permeates all aspects of the Forex experience.
Market Timing for currency trading is 9-5pm
USD-INR - 1000 Dollars, EUR-INR - 1000 Euros, GBP-INR 1000 GBP, JPY-INR - 1,00,000 JPY
2 working days prior to the last business day of the month
No, you cannot take delivery in currencies.
No, you do not need to open demat account for currencies.
A commodity is a product having commercial value that can be produced, bought, sold, and consumed.
A derivative contract is an enforceable agreement whose value is derived from the value of an underlying asset; the underlying asset can be a commodity, precious metal, currency, bond, stock, or, indices of commodities, stocks etc. Four most common examples of derivative instruments are forwards, futures, options and swaps/spreads. Commodity future is a contract to buy or sell specific commodity, of a specific quality, at a specific price, for a specific future date on the exchange.
A forward contract is a legally enforceable agreement for delivery of goods or the underlying asset on a specific date in future at a price agreed on the date of contract. Under Forward Contracts (Regulation) Act, 1952, all the contracts for delivery of goods, which are settled by payment of money difference or where delivery and payment is made after a period of 11 days, are forward contracts.
Disbursement only be made after credit, technical and legal appraisals of the property have been done, besides execution of loan documents and creation of mortgage over property be made either by deposit of original property documents or by registered mortgage or by both has been completed.
Futures Contract is a type of forward contract. Futures are exchange traded contracts to sell or buy standardized financial instruments or physical commodities for delivery on a specified future date at an agreed price. Futures contracts are used generally for protecting against rich of adverse price fluctuation i.e. hedging.
Futures prices evolve from the interaction of bids and offers emanating from all over the country which converge in the trading floor or the trading engine. The bid and offer prices are based on the expectations of prices on the maturity date.
In simple terms, long position is a net bought position.
In simple terms, short position is net sold position.
In a spot market, commodities are physically bought or sold usually on a negotiable basis resulting in delivery. While in the futures markets, commodities can be bought or sold irrespective of the physical possession of the underlying commodity. The futures market trades in standardized contractual agreements of the underlying asset with specific quality, quantity, and mode of delivery whose settlement is guaranteed by regulated commodity exchanges.
As in capital markets, a commodity exchange is an association or a company or any other body corporate that is organizing futures trading in commodities and is registered with FMC (Forward Market Commission). Two major national level commodities exchanges are Multi Commodities Exchange of India (MCX), National Commodities and Derivatives Exchange of India (NCDEX).
Commodity Market in India is regulated by Forward Market Commission (FMC) under the guidance of the Ministry of Consumer Affairs, Food, & Public Distribution.
The biggest advantage of trading in commodity futures is price risk management and price discovery. Farmers can protect themselves against undesirable price movements and decide upon cropping pattern. The merchandisers avoid price risk. Processors keep control on raw material cost and decreasing inventory values. International traders also can lock in their prices.
Hedging means taking a position in the futures or options market that is opposite to a position in the physical market. It reduces or limits risks associated with unpredictable changes in price. The objective behind this mechanism is to offset a loss in one market with a gain in another.
Arbitrage is making purchases and sales simultaneously in two different markets to profit from the price differences prevailing in those markets. The factors driving arbitrage are the real or perceived differences in the equilibrium price as determined by supply and demand at various locations.
It is a document issued by a warehouse indicating ownership of a stored commodity and specifying details in respect of some particulars, like, quality, quantity and, some times, indicating the crop season. The original depositor or the holder in due course can claim the commodities from the warehouse by producing the warehouse receipt.
Commodities have predefined lot sizes (set by the respective exchanges as per existing regulation) where current price of a particular commodity, for selected expiry, is shown in contract information available & rate units differ for different commodities. The standard unit based on which the price of the contract is quoted for trading is called quotation or base value. E.g. for gold contract, the quotation or base value is 10 grams while it is 1 kg in case of silver on MCX.
It is the quantity of a commodity specified in the contract as tradable units. The lot size is different for each commodity. The details about lot sizes / delivery lot can be obtained from the respective exchanges’ website. Each contract has a lot size and a delivery size, which are not the same; in the case of gold, the lot size on the NCDEX is 100 gm while the delivery size is 1000 gm. If a person wants to enter into a delivery settlement for gold, he will have to enter into a minimum of 10 contracts or multiples thereof. Market participants are required to negotiate only the quantity and price of the contract, as all other parameters are predetermined by the exchange. Please note the trading/delivery lot varies from exchange to exchange.
The cost-of-carry of a commodity is the sum of all the costs including interest, insurance, storage costs, and other miscellaneous costs. Usually, the commodity futures price in the exchange is the spot price plus cost-of-carry.
Basis is the difference between the spot price of an asset and the futures price of the same asset underlying. The spot price is the ready price prevailing in the physical commodity market while the futures price is the price of any specific contract that is prevailing in the exchanges where it is traded.
Generally, the spot price of a commodity and future price of the same underlying commodity do not change by the same amount during the life of the futures contract. This uncertainty in the variation of basis is known as basis risk.
Contango means a situation, where futures contract prices are higher than the spot price and the futures contracts maturing earlier. It arises normally when the contract matures during the same crop season. In a well-integrated market, Contango is equal to the cost of carry viz. Interest rate on investment, loss on account of loss of weight or deterioration in quantity etc.
This situation arises when the price of futures contract is below the spot price of the same commodity. This happens when there is a shortage for the underlying asset in the cash market, but also there is an expectation that the supply of the commodity will increase in the future.
It is the minimum percentage of the contract value required to be deposited by the members/clients to the exchange before initiating any new buy or sell position. This must be maintained throughout the time their position is open and is returnable at delivery, exercise, expiry or closing out.
It is the extra margin imposed by the exchange on the contracts when it enters the concluding phase i.e. it starts with tender period and goes up to delivery/settlement of trade. This amount is applicable on both the outstanding buy and sell positions.
Mark-to-market margins (MTM or M2M) are payable based on closing prices at the end of each trading day. These margins will be paid by the buyer if the price declines and by the seller if the price rises. This margin is worked out on difference between the closing/clearing rate and the rate of the contract (if it is entered into on that day) or the previous day's clearing rate. The Exchange collects these margins from buyers if the prices decline and pays to the sellers and vice versa.
The contract enters into the tender period a few days before the expiry. This enables the members to express their intention whether to give or take delivery.
It is the rate at which the contract is settled on the expiry date. Usually it is the average of the spot prices of the last few trading days (as specified by the exchange) before the contract maturity.
Spread is the difference between prices of two futures contracts of the same underlying commodity. Futures market can be a normal market or an inverted market. If the price of the far month futures contract is higher than the near month one, then it is referred to as “normal market”. On the other hand, if the price of a far month futures contract is lower than the near month one, then the situation can be referred to as “inverted market”.
In most commodities and financial derivatives market, the term refers to buying contracts maturing in nearby month, and selling the deferred month contracts, to profit from the wide spread which is larger than the cost of carry.
In most of commodities and financial derivatives market, the term refers to selling the nearby contract month, and buying the distant contract, to profit from saving in the cost of carry.
Rolling over of hedge position means the closing out of existing position in the futures contract and simultaneously taking a new position in a futures contract with a later date of expiry.
A calendar spread means taking opposite positions in futures contract of the same commodity with different expiry dates. It is also known as an intra-commodity spread.
Hedge ratio is the ratio of number of futures contracts to be purchased or sold, to the quantity of cash asset that is required to be hedged. It is calculated as product of the coefficient of correlation between the change in cash prices and the change in futures prices, and the ratio between the standard deviation of the change in cash price and the standard deviation of the change of futures prices of the commodity.
This refers to the tendency of difference between spot and futures contract to decline continuously, so as to become zero on the date on maturity.
Some Clearing Houses interpose between buyers and sellers as a legal counter party i.e., the clearing house becomes buyer to every seller and vice versa. This obviates the need for ascertaining credit-worthiness of each counter party and the only credit risk that the participants face is the risk of clearing house committing a default. Clearing House puts in place a sound risk-management system to be able to discharge its role as a counter party to all participants.
It is a process of settling a futures contract by payment of money difference rather than by delivering the physical commodity or instrument representing such physical commodity (like, warehouse receipt). In India, most of the future trades are cash settled.
Yes, like equity markets, commodity market has circuit breakers. Exchanges have circuit filters in place. The filters vary from commodity to commodity but the maximum individual commodity circuit filter is 6 per cent. The price of any commodity that fluctuates either way beyond its set price limit will fall in circuit breaker category.
A settlement takes place either through squaring off your position or by cash settlement or physical delivery. Squaring off is taking a opposite position to the initial stance, which means in the case of an original buy contract an investor would have to take a sell contract. An investor who intends to give or take delivery would have to inform his broker of the same prior to the start of delivery period. In case of delivery, a warehouse receipt is provided. Delivery is at the option of the seller; a buyer can take delivery only in case of a willing seller. All unmatched/rejected/excess positions are cash settled; all open positions for which no delivery information is submitted are also cash settled. Under cash settlement, the difference between the contract price and settlement price is to be paid or received. In online commodity trading, client can not go for delivery & all positions are cash settled.