WEP Strategy uses NIFTY Options contracts to create an optimum pay-off for our clients.
Options, being a part of Derivatives, has guidelines laid down by exchanges and regulator. When someone wants to execute certain derivative trades, they need to deposit a certain amount upfront with the broker. Exchanges call it Initial Margin.
Scale Up WEP works on the premise of using limits available on your portfolio. Exchanges allow investors to deposit initial margin in the form of collateral (equity shares, mutual fund units, bonds, fixed deposits). Generally, the margin allowed to be utilized is around 80% (differs on each security) of the value of portfolio. If you have mutual funds units worth Rs.100, you can trade on another Rs.80 worth of margins. So, your portfolio worth Rs.100 effectively is now Rs.180!