US companies like NVIDIA, Apple, Tesla and Microsoft are familiar to investors around the world. But what does it mean for a virtual digital asset to track the price of one of these companies? This guide explains US Stock Tokens, how they work, and how Mochatrade uses them as reference assets for VDA derivatives.
What exactly are US Stock Tokens?
US Stock Tokens are Virtual Digital Assets (VDAs) designed to track the reference prices of specific US equities. Each token corresponds to a named underlying company for pricing purposes, but is not a share of that company.
For example, NVDA-T is a US Stock Token referencing NVIDIA, AAPL-T references Apple, and TSLA-T references Tesla. The “-T” identifies the US Stock Token, distinguishing it from the underlying US equity and from derivative products offered on Mochatrade.
A US Stock Token does not give its holder legal ownership of the underlying equity, shareholder voting rights, or direct dividend entitlements. Its purpose in Mochatrade’s product architecture is to serve as the reference VDA for derivatives.
How do US Stock Tokens track prices?
Mochatrade records reference prices for US Stock Tokens using market data associated with their underlying US equities. For example, if NVIDIA has a reference price of $200, NVDA-T is designed to reflect that price. If the reference price later moves to $220, NVDA-T’s reference price would reflect that change, subject to the platform’s pricing methodology and market-data availability.
These are reference values, not a promise that a US Stock Token can be exchanged for a share of the underlying company. A reference price also does not guarantee that a derivative position can be entered or exited at that exact value.
Can you buy or sell US Stock Tokens on Mochatrade?
No. US Stock Tokens are not directly tradable by users on Mochatrade. Instead, they are the reference assets for INR-settled VDA derivative contracts offered on the platform.
For example, NVDA-T is the reference US Stock Token. NVDA+ is a Stocks+ derivative contract referencing NVDA-T. The two are different instruments: NVDA-T provides the reference price, while NVDA+ is a tradable derivative position.
What products reference US Stock Tokens?
Mochatrade’s derivative product categories include Stocks+ and Perpetual futures referencing US Stock Tokens. Each product has its own payoff structure, contract specifications, risk profile and trading rules.
Stocks+ are designed for 1x long exposure to a reference US Stock Token, with no fixed expiry and no recurring funding fees. Perpetual futures provide a leveraged Long/Short derivative exposure with funding fees. Users should consult the individual product specifications before trading.
An example using NVDA-T
Suppose NVDA-T references a $200 NVIDIA price and Mochatrade specifies an illustrative conversion rate of ₹90 per $1. The INR reference value for one token-equivalent unit would be ₹18,000. If NVDA-T’s reference price increases to $220 while the conversion rate stays fixed, the reference value would become ₹19,800, a 10% increase.
This is a reference-price illustration, not a transaction in NVIDIA shares or a direct purchase of NVDA-T. The actual profit or loss on a derivative referencing NVDA-T depends on the specific contract, entry and exit prices, fees and other terms. The specified conversion rate may differ from the prevailing USD/INR market rate.
Why use US Stock Tokens as reference assets?
US Stock Tokens create a consistent VDA reference layer for multiple derivative products. Rather than directly offering purchases of foreign equities, Mochatrade offers INR-settled derivative contracts whose value is linked to US Stock Tokens.
This distinction matters: the referenced company, the US Stock Token and the tradable derivative contract are three different things. A user trading a derivative on Mochatrade is not acquiring the underlying US equity or the US Stock Token itself.
How does 24/7 trading work?
Mochatrade offers 24/7 trading in supported VDA derivative contracts referencing US Stock Tokens, including weekends and holidays. This does not mean the underlying US equity exchanges operate 24/7, nor does it mean US Stock Tokens themselves are directly tradable on Mochatrade.
Liquidity is typically highest during regular US equity market hours (9:30 AM–4:00 PM Eastern Time). Outside these hours, liquidity can decline, spreads can widen and available derivative execution prices may differ from the last observed underlying equity reference price.
Reference-price methodology and market-data availability are especially important when US markets are closed.
US Stock Tokens versus actual US equities
US Stock Token: a VDA used to reference the price of a named US equity; no underlying share ownership, voting rights or direct shareholder dividends; not directly tradable by users on Mochatrade.
Underlying US equity: an ownership security issued by a company; may carry shareholder voting and dividend rights; traded through securities-market infrastructure.
Mochatrade VDA derivative: a separate contract referencing a US Stock Token, traded and settled in INR under its own terms; does not transfer the US Stock Token or underlying equity to the user.
What risks should users understand?
Reference-price risk: a US Stock Token’s recorded price depends on pricing methodology and market data, which may be delayed, unavailable or less representative when the underlying market is closed.
Derivative market risk: positions referencing US Stock Tokens can lose value, potentially resulting in loss of the entire invested amount.
Liquidity and execution risk: derivatives may trade at prices different from indicative reference values, especially outside regular US trading hours.
Counterparty, operational and regulatory risk: trading and settlement depend on contractual counterparties, systems, market arrangements and applicable rules. These products are not SEBI-regulated securities or exchange-traded derivatives.
The key takeaway
US Stock Tokens are virtual digital reference assets that track the prices of underlying US equities. They are not shares and are not directly traded by users on Mochatrade. Instead, Mochatrade offers INR-settled VDA derivative contracts including Stocks+ and perpetual futures that reference these US Stock Tokens.
Disclaimer
US Stock Tokens are Virtual Digital Assets (VDAs) referencing prices of underlying US equities. They do not represent ownership of or any legal interest in the underlying equities, and do not confer shareholder voting rights or direct dividend entitlements. US Stock Tokens are not directly tradable by users on Mochatrade. Mochatrade offers separate INR-settled VDA derivative contracts referencing these tokens.
Mochatrade is operated by ALSD Technologies Private Limited, registered with the Financial Intelligence Unit – India (FIU-IND) as a Virtual Digital Asset Service Provider (VDASP). ALSD Technologies Private Limited is not registered with or regulated by the Securities and Exchange Board of India (SEBI). The VDA derivatives offered on Mochatrade are not SEBI-regulated securities or exchange-traded derivatives, and the investor protections and grievance-redressal mechanisms applicable to SEBI-regulated securities markets do not apply to trading these products. FIU-IND registration does not constitute regulatory approval, authorization or endorsement of US Stock Tokens or any Mochatrade product.
Supported VDA derivatives may trade 24/7, but liquidity may be lower outside regular US equity market hours. Prices, spreads, reference data and execution conditions may vary. Derivative trading involves market, liquidity, counterparty, pricing, operational and regulatory risks, including potential loss of the entire invested amount. Illustrations exclude applicable fees, taxes and charges. Review the Terms of Use, contract specifications and risk disclosures before trading.