Paytm Money launches Margin Pledge feature

Paytm has announced the debut of the 'Margin Pledge' service through its wholly-owned subsidiary Paytm Money.

  • Money9
  • Publish Date - November 24, 2021 / 01:36 PM IST
Paytm Money launches Margin Pledge feature
Paytm Money's revenue could increase as a result of higher pledge charges and additional transactions from the feature.

Paytm Money has launched the Margin Pledge function, which allows customers to leverage their existing portfolios to discover new trading opportunities. With just a few clicks, users can pledge their stocks to the broker in exchange for a collateral margin.

Margin can be used to trade equities, exchange-traded funds (ETFs), futures, and options.

During the pledge period, pledged equities stay in the user’s demat account and are eligible for any corporate activities.

Paytm Money’s revenue could increase as a result of higher pledge charges and additional transactions from the feature.

Paytm has announced the debut of the ‘Margin Pledge’ service through its wholly-owned subsidiary Paytm Money. Users will be able to pledge their existing stocks and ETFs in exchange for a collateral margin that may be utilised for stock, ETF, futures, and options trading.

Due to a lack of capital, investors who hold a stock portfolio may miss out on trading possibilities. Paytm Money has introduced the ‘Margin Pledge’ function to alleviate this issue. Margin Pledge is a method of pledging one’s stocks to a broker in exchange for a collateral margin that can be used for trading.

Cutting edge technology

Paytm Money has taken advantage of cutting-edge technology to make pledging and unpledging as simple as a few clicks. During trading hours, the collateral is received within 30 minutes, and the collateral is calculated in real time. Pledged stocks stay in the demat account of the user, are eligible for all corporate actions, and can be sold directly.

“At Paytm Money, we’ve used technology to improve the user experience and provide them with all available options.” Investors will be able to use their existing portfolio to take advantage of new trading opportunities with the advent of the Margin Pledge function. We have designed the feature such that users can complete the entire process within a few clicks making their trading experience seamless,” Varun Sridhar, CEO, Paytm Money said.

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