Paytm Money launches Futures & Options trading feature at Rs 10 per order
Paytm on Wednesday launched a Futures and Options (F&O) trading feature on its Paytm Money platform, furthering its mission to make investment instruments accessible to the quintessential common Indian man, as well as make good on its 'financial inclusion' policy, the startup announced in an online press conference.
Varun Sridhar, Chief Executive Officer, Paytm Money, said the platform will allow 500 members early access for the time being. The full version will be rolled out to all of Paytm Money's users within two weeks.
Emphasising the ease of use the platform and the derivatives trading feature will provide to users, Varun said,
"Our app is not aimed at catering to ultra-HNIs who have a team of ten people advising them and who make 5,000 trades every day. We've made the app for middle-class India, and we've made sure it is easy to understand."
Each new F&O trade will cost the users Rs 10, which Paytm claims is the lowest rate offered in India today. The startup said it's aiming for a daily turnover of 1.5 lakh crore over the next 18-24 months.
Derivatives trading is a tool most commonly used to hedge investment positions, as well as manage risks. It also helps reduce market transaction costs.
Users asked Varun and Paytm CEO Vijay Shekhar Sharma on the call if the company was planning to launch cryptocurrency trading on the platform - especially with bitcoin hitting record highs frequently over the last couple of months.
Varun clarified that the startup has no plans to launch crypto-trading anytime soon, mostly because the RBI and SEBI have not laid out clear policies vis-a-vis cryptocurrency. He added that Paytm was discussing crypto with the regulators.
"The day India will have regulatory oversight where your money is protected, we can think of launching crypto-trading," he said.
The company is also looking to launch sovereign gold bonds sometime this year.
Edited by Anju Narayanan