MTF Pledge vs Margin Pledge: Explained in simple terms. Read now!

Stock trading in the market tends to demand greater amounts of capital than that of a trader who has the cash at hand. It is here that the leveraging tools find their use. Margin Trading Facility (MTF) and share pledging are two strong and widely used tools that enable traders to boost their purchasing power. Although both techniques offer access to additional funds, they operate in distinct manners and are suitable for different types of traders and trading situations.

This article provides an in-depth, yet easy-to-understand, explanation of these two amenities, exploring their definitions, primary distinctions, and when it is optimal to utilise each of them. This manual will assist an investor in knowing how to employ such instruments safely and efficiently to maintain one’s investments. The trader/investor should always know enough before employing such financial instruments so as not to get into potential pitfalls.

What is a Margin Trading Facility (MTF)?

A Margin Trading Facility (MTF) is a unique, SEBI-regulated product that allows traders to buy new shares with very little cash. Another name given to this facility is E-margin or “Pay Later.” MTF permits traders to purchase stocks by paying just a part of the total amount upfront. The broker finances the rest.

Example of Margin Trading Facility MTF:

For instance, if a share costs ₹800 and the leverage permitted under MTF is 4x, then one only has to pay ₹200, and the broker will pay the remaining ₹600. This gives the trader the ability to purchase more shares than they could with their own money. The only difference with MTF is that the pledging of investors’ shares is required, and this must be done within the specified time requirements. The instant a trader purchases shares via MTF, he/she is required to mandatorily pledge them back to the broker. They must complete this task by a deadline, typically 9:00 PM on the same day they acquired the shares.

Read the complete article here: https://bigul.co/blog/stock-market/mtf-pledge-vs-margin-pledge-know-the-difference 

How to Create Zero-Risk Strategies in F&O

Options trading in the futures and options (F&O) market can feel like a rollercoaster—exciting but full of risks. What if you could smooth out the ride and minimise those risks? That’s where zero-risk strategies come in. While no strategy is completely risk-free in the real world, specific approaches can significantly reduce your exposure. In this article, we’ll explore what these strategies are, walk through a practical example, and discuss how to put them into action.

Understanding Zero-Risk Strategies

Zero-risk strategies aim to limit losses while still giving you a shot at profits. They often involve combining call options (the right to buy an asset) and put options (the right to sell an asset) in ways that offset potential downsides. For example, a covered call involves owning a stock and selling a call option against it. If the stock price rises, you might cap your gains, but the option premium you collect cushions the blow. If it falls, you still have the stock, though its value drops.

You can also execute the strategy by selling protective puts. At this point, you acquire a put option for a stock you own. Should the price fall, you may choose to exercise the put and get out at the strike price, preventing your loss from growing. While these approaches aren’t always reliable, they do help traders become more secure when trading options.

Read full article here: https://bigul.co/blog/option-trading/how-to-create-zero-risk-strategies-in-future-and-options

How to Make a Profit Using Bullish Option Trading Strategies?

What is Option Trading?

If you are a beginner and trading in the stock market, you often wonder what option trading is. It’s basically a way to profit from the movement of stock price or Index price by buying or selling contracts at a set price. For example, an options trading for beginners scenario might be buying a call option on Reliance Industries at Rs. 1,400 if you believe its price will rise. If Reliance climbs to Rs. 1,500 before expiry, that call option becomes valuable and you make a profit. This strategy lets you gain from upward price moves with limited risk (the most you lose is the premium paid).

A Few Things You Need To Know Before Diving Into Options

Calls vs. Puts: It is good to know the basics before proceeding with the strategy. In option puts and calls, you would have a call option to purchase a stock at a set price (in case you think the stock will increase), and a put option to sell a stock at a set price (in case you think the stock will decrease). When the terms put option and call options are used, consider calls as the bullish side and puts as the bearish side.

Some traders even use a call and a put together, which they sometimes call an options call put strategy (like a straddle); but for now, we'll focus on straightforward bullish strategies.

When markets are rising, traders use bullish option trading strategies to capitalize on gains. These strategies let you potentially earn money when stocks like Infosys or TCS climb higher. We will look at five common strategies: buying a call (Long Call), Bull Call Spread, Covered Call, Cash-Secured Put, and Protective Put. 

Each one uses calls and puts in different ways to aim for profit. We’ll use real examples with Indian stocks and rupees to illustrate how each option trading strategy works.

Bullish Strategies For The Indian Market

Long Call: This is the simplest bullish strategy. You pay a premium to buy a call option, which gives you the right to buy shares at a strike price. For example, if Reliance is trading at Rs. 1,400, you could buy a Rs. 1,500 strike call option for, say, Rs. 50. This costs you Rs. 50 per share (the premium). If Reliance moves up to Rs. 1,600 by expiry, your call option (which lets you buy at 1,500) is worth at least Rs. 100, so you make a net profit of Rs. 50 per share. The most you risk is the premium paid, and option trading for beginners love this strategy for its simplicity and unlimited upside.

Bull Call Spread: This strategy uses two call options to reduce cost. You buy a call at a lower strike and sell another call at a higher strike. For instance, imagine Infosys is at Rs. 1,400. You buy a Rs. 1,400 call for Rs. 100 and sell a Rs. 1,500 call for Rs. 50. Net, you pay Rs. 50 in premium. If Infosys rises to Rs. 1,500 by expiry, the 1,400 call is worth Rs. 100 and the 1,500 call expires worthless, giving you Rs. 50 profit (Rs. 100 value minus Rs. 50 cost). This caps both your profit and loss but is a popular option trading strategy to boost gains when the stock rises moderately.

Covered Call: If you have shares of a company, then you can sell a call on the stock to earn.For example, you hold 100 shares of TCS at Rs. 3,000. You sell a Rs. 3,200 strike call and collect about Rs. 60 per share in premium (Rs. 6,000 total). If TCS stays below Rs. 3,200 by expiry, you keep the premium and still own your shares. If TCS rises above Rs. 3,200, you must sell your shares at that price, but you still keep the premium. This option trading strategy gives you income in a rising market, though it limits extra gains beyond the strike.

Cash-Secured Put: This strategy is selling a put option on stock while having enough cash to buy the stocks later. For example, if Infosys trades at Rs. 1,400 and you believe it won’t drop below Rs. 1,300, you could sell the Rs. 1,300 put option for Rs. 40 premium. If Infosys stays above Rs. 1,300 by expiry, you keep the Rs. 40 per share premium as profit. If Infosys falls to Rs. 1,200, you must buy 100 shares at Rs. 1,300 (using your cash), but your effective cost is Rs. 1,260 (Rs. 1,300 strike minus Rs. 40 premium).

Protective Put: If you have a stock and you think it will drop then you should buy a Put for the insurance.For example, say you own 100 shares of Reliance at Rs. 1,400. You buy a Rs. 1,300 put for Rs. 30. If Reliance stays above Rs. 1,300, you lose the Rs. 30 premium but still profit from any higher stock price. If Reliance crashes to Rs. 1,200, you can sell at Rs. 1,300 using the put, capping your loss. Protective puts cost a premium but give peace of mind, letting you stay bullish in trading in stock market with limited downside.

Read more here: https://bigul.co/blog/option-trading/how-to-make-a-profit-using-bullish-option-trading-strategies

Top 5 Commodities To Invest In Through The Indian Stock Market

India’s commodity market is no longer the exclusive preserve of large industrial buyers or institutional funds. Supported by electronic, tighter regulation and a surge in digital‐first brokerages, retail investors now enjoy near-instant access to bullion, base metals and energy derivatives. 

This guide explores—in detail and with hard data—the five most liquid commodity segments in India’s stock market and shows you exactly how to invest, hedge and trade them profitably.

How to Invest in the Commodities Market in India? 

Retail participation begins with opening a demat + trading account at a registered broker that offers direct routing to the appropriate exchanges for bullion, energy and base-metal contracts, as well as commodity ETFs. After verification, you receive a unique client code that lets you place orders via web, mobile or API. Clearing and settlement are handled centrally, using risk-based margining to ring-fence counterparty risk. Contracts are cash-settled in rupees, although they align with international commodity benchmarks.

You can invest through:

• Exchange-traded futures (e.g., mini gold, crude oil mini, copper, natural gas) that trade on extended market hours, with small tick sizes and lot values starting relatively low for mini variants.

• Physically-backed ETFs which track spot bullion prices net of expense ratios.

• Bonds and electronic receipts for gold that carry sovereign backing and no storage risk.

• Digital bullion platforms that allow small, regular SIPs in gold or silver, which is securely stored.

• Options on futures contracts in copper or crude oil, offering limited-risk and lower margin entry points.

Margin requirements for most contracts range from 4% to 10% of notional, enabling efficient leverage but also magnifying mark-to-market swings. Beginners should start with mini lots, use bracket orders, and never allow mark-to-market losses to exceed 2% of trading capital per session. Silver trading, crude oil futures, copper futures, natural gas MCX quotes and investing in gold and silver all become straightforward once you combine real-time price feeds with an audited risk plan.

Let's understand the top 5 commodities to invest in the Indian stock market.

Read more here: https://bigul.co/blog/stock-market/top-5-commodities-to-invest-in-through-the-indian-stock-market

Slippage in Algo Trading: Your Guide to Smoother Execution in India

Have you ever been glued to the screen, watching the market for hours, and thought, 'How can I benefit from the market without sitting for long hours?' The answer is algo trading. Algo trading is essentially computer programs used to automate trades and remove manual and emotional biases from investing.

In Algo trading, one of the major key factors is slippage. It is basically the gap between expected and actual execution prices. Let’s understand how a trader can remove slippage from its trades and execute the trades using Algo trading software carefully. 

What Is Algo Trading?

Algo trading transforms how a trader or investor interacts with the markets with the help of computer programs. In algo, there is no need of manual execution. The algorithmic trading software can help to scan real-time data and spot opportunities. Algorithmic trading software eliminates emotional biases and helps to execute trades efficiently. 

Algorithmic trading software handles everything from analysis to execution, making trading much easier for novice traders. Trading with algo Software means outsourcing the heavy lifting to the computer. Whether you're a novice or pro, understanding algo trading is foundational for modern finance.

Modern algo trading software comes in various forms, from sophisticated institutional platforms to user-friendly algorithmic trading apps designed for retail traders. These algo trading apps make it possible for individual investors to trade with algo without extensive programming knowledge. Meanwhile, many modern algorithm software for trading solutions offer visual programming interfaces that allow traders to create strategies without extensive coding experience.

One crucial concept that every trader must know is that Algo trading software may cause slippage due to market volatility, low liquidity or delay in order execution.To define slippage more precisely: it's the cost of market impact when your order moves the price against you. Order slippage can significantly affect profitability, especially in high-frequency trading strategies.

Let's understand in detail what slippage is and how viable Algo Trading is in the context of the Indian market. 

What Is Slippage In Algo Trading?

Picture this: your algo software identifies a buy signal through crunching numbers at lightning speed. Your order comes at Rs 100, but the reality bites, your confirmation shows a final price of Rs 100.50. That frustrating 50 paise gap? That's slippage in algo trading in action.

Simply put,  slippage is the unavoidable friction between the price you expect and the price you actually get when your trade executes. It's the difference between the intended execution price and the real, actual execution price. This order slippage isn't just an abstract annoyance; it's real money leaking from your potential profits or adding to your losses, silently chipping away at your edge.

Slippage in trading is primarily driven by market dynamics moving faster than orders can be filled. Imagine trying to buy a rare collectable at an auction just as bidding explodes – the price you hoped for vanishes instantly. Similarly, high volatility, like during an earnings surprise or major news event (e.g., Nifty crashing 2% in minutes), causes prices to jump erratically. Even tiny delays in order routing, measured in microseconds for high-frequency algo trading algorithms, can be enough for the market to move against you.

Consider this relatable example: You want to buy 10,000 shares of "XYZ Ltd," currently quoted at Rs150 (bid) / Rs150.50 (ask). Your algorithm signals a market buy. In a calm market, you might get filled near Rs150.50. But if negative news hits just as your order hits the exchange, the only available sellers might now be at Rs151.00 or higher. Your actual execution price could average Rs151.25 – that's Rs0.75 per share of slippage, costing you Rs7,500 instantly! 

Research has estimated that the average costs of slippage may be 5-20 basis points per trade (0.05-0.20 percent), However, in event volatility such as the 2020 market crash, or a "flash crash," slippage can reach 1 or more. On a 1-crore institutional order, a slippage of just 0.10 per cent results in a 10,000-rupee loss that is non-recoverable and has to be borne straight away. Certain brokers will also explicitly charge a slippage fee in case of execution, making it not within the guaranteed parameters.

Understanding the slippage meaning in trading is crucial because it transforms theoretical strategy returns into practical, real-world performance. Unmanaged slippage can easily halve that figure. It's the chaotic reality of order books, where thousands of orders collide, and prices shift continuously. 

Read more here: https://bigul.co/blog/algo-trading/navigating-slippage-in-algo-trading-your-guide-to-smoother-execution-in-india

NSDL IPO 2025: Open Date, Price Band, GMP and How to Apply

NSDL IPO 2025 has captured the attention of investors across India. NSDL IPO opening date is July 30, 2025 and closing on August 1, 2025. NSDL IPO today is at Rs 145–Rs 169 per share. Here’s every detail you need to know before apply on this IPO—dates, price band, grey market premium (GMP), lot size, application process, and why this IPO matters for your investment strategy.

NSDL IPO Open Date and Closing Date

NSDL (National Securities Depository Limited) IPO opens for subscription on July 30, 2025 and closes on August 1, 2025. This 3-day window is standard for mainboard IPOs. Investors keep in mind that the bidding for anchor investors will starts a day earlier, on July 29, 2025. The shares are set to be listed on the BSE only on August 6, 2025.

NSDL IPO: How to Apply

You can apply for the NSDL IPO online easily by following method:

·       Log in to your demat account. If you don’t have one, click here to open a free demat and trading account with bigul.

·       Go to the IPO section. Click here

·       Select “NSDL IPO.”

·       Enter the lot size (multiples of 18 shares).

·       Provide your UPI ID, submit the application, and approve the payment request on your UPI app.

NSDL IPO Price Band and Lot Size

NSDL IPO price band is Rs 760 to Rs 800 per equity share. The minimum lot size is 18 shares. For retail investors, that means a minimum investment of Rs 14,400 at the upper end of the band.

Price Band (per share)	Lot Size	Minimum Investment	Issue Size
Rs 760–Rs 800	18	Rs 13,680–Rs 14,400	Rs 4,011.6 crore

The entire IPO is an Offer for Sale (OFS). No fresh shares are being issued—the proceeds go to existing shareholders, IDBI Bank, NSE, SBI, Union Bank, HDFC Bank, and SUUTI, who are paring down stakes to comply with SEBI norms.

Read full article here: https://bigul.co/blog/ipo/nsdl-ipo-gmp-open-date-price-band-issue-size-rs-3000-crore

The Top 10 Reasons Why To Invest In Gold Today - Bigul

Gold Isn’t Just Shiny – It’s Strategic. Here’s Why You Should Consider Investing Today.

Is gold still a good investment in today’s fast-moving, tech-driven world? Absolutely. In fact, with rising inflation, currency uncertainty, and unpredictable markets, gold may be more relevant than ever.

From acting as an inflation hedge to offering a safe haven during crises, gold provides real, tangible value when other assets wobble. It doesn’t rely on central bank promises. It’s not printed at will. It’s scarce, real, and globally trusted.

In our latest blog, we break down:

• The Top 10 reasons to invest in gold now

• Physical vs Digital Gold – what suits your goals?

• Is Digital Gold Investment good or bad?

• And most importantly: Is it worth buying gold today?

Whether you're a first-time investor or someone building generational wealth, this guide will give you clarity and conviction.

👉 Read the full blog here at Bigul