What is Indian Trading League?

The Indian Trading League (ITL) is all set to begin its second season on 1 May after a successful debut in 2015. It has India’s former Cricketer and Captain Kapil Dev as its Brand Ambassador. The championship will run from 1May 2016 to 31 March 2017. So what is the Indian Trading League? ITL is India’s first online stock and commodity trading championship where participants can register and showcase their talent competing against other traders and investors. No, this is not a game or simulation with virtual money, this championship is played by real people and with real money and the best get rewarded through a variety of prizes. The first season was successful with some of the most talented share and commodity traders showcasing their skills.

Who can Participate?

Anyone can register and participate, including investors, intra-day traders, positional or short traders and systems/algorithmic traders. All participants need to register with SAMCO Securities Limited, the authorised broker for this championship. The registration is free, though a minimum investment amount of Rs. 25,000 is required to participate. The brokerage charges is a flat Rs. 20 per trade plus statutory levies, irrespective of the amount traded per trade.

What is at stake?

Total prize money is over Rs 1.5 crore and can be won across daily, weekly, monthly, quarterly and for the annual period. Participants can sign up any time to participate in any of the six formats. Winners will be announced at the end of each period: Daily League – the next trading day Weekly League – at the end of each week Monthly League – at the end of each month Quarterly League – at the end of each quarter Annual League – at the end of the Financial Year on 31 March 2017

The ITL Medals

To make the championship interesting and to recognise and reward good trading practices, ITL is offering Gold, Silver and Bronze medals for good trading moves.

Gold medals are awarded to those who consistently achieve trading and investing goals. Winning a Gold medal is recognition of an investor’s consistency and character, both the qualities are hallmarks of a good trader.
Silver medals are awarded as a recognition of a participant’s understanding of the intricacies of investing and trading.
Bronze medals recognise implementation of proper trading techniques.

However, to make the competition more interesting, there are penalties imposed. The objective of imposing penalties is to teach participants the importance of following the cardinal rules of the game and that they must never be broken. As traders make minor mistakes, they will earn a Yellow Card. The Red Cards are meant to ensure that a trader never cross the red line – a point where the market imposes harsh penalties.

The ITL Formats

Master Traders League

This format is open to investors, intra-day and short-term traders, positional traders and system traders. Participants in this league can choose to compete in any asset class:

Equities
Equity Derivatives
Interest Rate Futures
Currency Derivatives

Participants can enter the competition any time from 1 May 2016 to 31 March 2017 with a minimum capital of Rs 25,000. While there is no limit on the amount that one can invest, a participant can be disqualified from the championship if their return exceeds negative 90% (-90%). The winners will be decided on the basis of the ‘highest percentage net return’.

Indian Investing League

Short, medium and long-term investors can participate in this league. This format is an Annual League only and winners will be announced on 31 March 2017. The asset class permitted in this format is Equities and one can join anytime between 1 May 2016 and 31 March 2017. Minimum capital investment required and winning and disqualification criteria remain the same for all formats.

Royale League or the ITL Elite League

This format is open to short-term and intra-day traders, positional traders, investors and system/algorithmic traders. Participants having a minimum Net Asset Value of Rs. 5 lakh or more can participate in any of the following asset classes:

Equities
Equity Derivatives
Interest Rate Futures
Currency Derivatives

Participants can join any time within the championship period. This is an Annual League only and winners will be decided on the basis of the ‘highest percentage net return’. The Royale League winners will be announced on 31 March 2017.

Indian Commodity League

This League is open to short-term and intra-day traders, positional traders and systems traders. Asset class permitted under this format is Commodity Derivatives and participants can join with a minimum investment amount of Rs. 25,000. The format has daily, weekly, quarterly and annual winners.

Women’s League

All female participants who compete in the Traders League also qualify for the Women’s League. In this format, asset classes permitted are:

Equities
Equity Derivatives
Interest Rate Futures
Currency Derivatives

Participants can join any time between 1st May 2016 and 31st Mar 2017 with a minimum capital investment of Rs 25,000. The winners of Women’s league will be announced for weekly, monthly, quarterly and annual period only. Winning and disqualification criteria remains as in other leagues.

Student’s League

This League has been opened to encourage young investors below the age of 27 years with an aim of promoting the culture of investing early in stock markets. The format is open to short-term and intra-day traders, positional traders and systems traders with a minimum investment capital of Rs. 25,000. Participants can join at any time during the period of the championship. The disqualification and winning criteria remain as per all other formats mentioned above and the winners will be announced for weekly, monthly, quarterly and annual period. Winning and disqualification criteria stands as in other formats.

A final word of caution

ITL is played with real money and therefore, the risk of losing money is also real. People who are familiar with market trading, either as small investors or full time professional traders, are better suited to participate in the ITL. It must be noted that as in any real trading market, the ITL is a zero sum game. If there is a winner on one side then there is a loser on the other. Both cannot win at the same time, therefore, one has to be well-informed on market trends, economy, company announcements and government policies: all of which have an impact on stock price movement. If you are up for it, then the Indian Trading League is waiting for you.