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Derivative Trading Account

Modified on: Mon, 1 Aug, 2022 at 7:14 PM

TABLE OF CONTENTS



Can a NRI trade in Equity Derivative Segment?


Yes, NRIs / PIOs / OCIs can trade in Derivatives segment in India . However such trades can be done currently in NRO mode only. 


We are one of the few Brokers in India who provide Trading facility to NRIs in F&O segment. The brokerage is as low as Rupees 49 per executed order.


What are the benefits of having a derivative account?

Following are some of the benefits of holding a Derivative account for NRI's

  • Helps you hedge your positions
  • Enables you trade in any market scenario, Bull / Bear or a flat market
  • Helps you directly track the Indices such as Nifty, Bank Nifty etc.,
  • Enables you to take volume with less margin as compared to Equity Cash
  • Enables you to do Intra day and carry over trades
  • Last but not the least, we charge a flat fee of just Rs.49/- per executed order as brokerage.

Should I open a PIS account to trade in Derivative segment?


No, PIS Bank Account is not required to open a F&O Trading Account. 


You need to have a SB NRO Bank Account in India to start trading in Futures and Options segment. Funding  your Futures and Options trading has to be done through the SB NRO Bank Account designated to the F&O Trading Account.



What is the role of Orbis Financial in Derivative Trading?


Orbis Financial Services is a Clearing Member and  we have tied up with them exclusively for clearing NRI F&O Trades. 


Following are 3 entities involved in F&O Trading with Tradeplus:


Orbis  (Clearing Member)


All your trades in F&O segment is cleared and settled through Orbis with the exchange. Payments and receipts pertaining to your F&O trading should be routed through your Orbis  Ledger. 


Tradeplus (Trading Member) 


Order placing will be routed through your Trading Account with Tradeplus. We provide you with online platform for trading in F&O segment. Trading limits will be set based on the funds available in your Orbis  ledger. 


Bank 


You can attach any SB NRO to your Trading Account. Funds are to be transferred directly to Orbis  from the NRO bank account that is linked to your trading account.



How do I fund my F&O account?


Steps to fund your F&O Trading Account:


  • Fund your SB NRO Bank account which has been attached to your F&O Trading Account
  • Do a NEFT transfer or normal transfer to the Designated Banks of Orbis.
  • Email pcmorbis@orbisfinancial.in the details of the transfer with a copy to nri@tradeplusonline.com
  • Orbis, after validating the transfer will update your Orbis  Ledger 
  • Tradeplus, on receipt of confirmation from Orbis  will update your Trading limits accordingly



Will taxes be deducted at source for F&O trading?

No, taxes will not be deducted at source. It is your responsibility to pay the taxes at the applicable rates. You may take our help of the help of your Auditor to file the returns in India at the appointed time.



Are F&O trades executed by me reported to RBI?

Trades in F&O will not be reported to RBI. Only trades done in NRE account in secondary market of Equity segment will be reported to RBI.



Can I execute F&O trades and Equity Delivery trades in single NRO account?

No, you will have to open 2 separate NRO accounts to trade in Equity Cash Segment and Equity Derivative Segment. This is because, the funds to trade in Equity Cash needs to be transferred to us while funds to trade in F&O needs to be transferred to Orbis Financial Corporation. Hence, to avoid confusion in allocation of funds to these segments, we open 2 different NRO accounts, one dedicated for Equity Cash segment and another for Equity F&O segment.


 

The brokerage for NRI F&O trade is as low as Rupees 49 per executed Order Only



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