Margin Trading Facility
- If you want to invest and gain from the regular market dynamics, you are surely in the right place.
- If you dream of walking in the footsteps of Rakesh Jhunjhunwala and Radhakrishna Damani (famous stock traders), you are surely on the right track.
- But funds are the most essential in trading, and you donʼt have it adequately?
- Do not worry! utilise the margin trading facility and grow your money the way you want.
- Margin Trading Facility makes the entire trading process easy and convenient for the traders even if they have a short supply of cash right at this moment of time.
- Your investments can surely reap results just in a click. Want to know about Margin Trading Facility, then read through.
Decoding Margin Trading Facility
- Margin Trading Facility helps you invest more in stocks than your actual fund capacity, especially in day trading sessions.
- For example, suppose you have INR 70000 and would like to invest more than that in XYZ company stocks today because you calculate the stocks outperforming its competitors. In that case, the Margin Trading Facility will come in handy
- How? Using Margin Trading Facility, you can get instant access to funds to invest in such stocks. The terms and conditions might differ for each of such firms.
- However, mostly, the brokerage firms, in a way, lend you the fund (sometimes to the tune of 50 percent of what you invest or more) while keeping the shares that you purchase as collateral for security reasons.
- Therefore, if you wish to invest when you opt for Margin Trading Facility, you can invest more than INR 70,000 in the stocks of XYZ Company. A word of caution, though, would be to research and analyse the stocks well before investing to keep a cap on your losses.
- Further, while taking this facility, you need to square off your positions regularly, as a rule.
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Benefits
01
Greater Trading Volume
In case you understand the market well and are adept at leveraging the benefit of the market, the Margin Trading Facility would come in handy to enhance your trading volume. E.g., if you have a trading capacity of INR 50,000, applying for a Margin Trading facility would help you enhance the capacity further, sometimes even double the capacity or more, depending on the brokerage firm.
02
Ease of Application
It is easy to apply for Margin Trading Facility. You can access such a facility with the brokerage company you are dealing with. You simply need to open a Margin Account with them. The process is easy, less time taking, and mostly online. Once you apply, thereafter, you will get an option to avail of MTF (depending on your limits as decided by the brokerage firm) whenever you trade.
03
The Profit is All Yours
In case you invest appropriately, you get to keep the entire profits over and above the margin money that you need to repay, just for yourself. However, the flip side would be that if the investments are not informed, you might lose even more than your actual investments. This would essentially mean that you end up increasing your financial liability. Therefore, seek professional help at DailyGong and research well to gain more with the Margin Trading Facility .
Invest with DailyGong. Invest smartly.
it’s your family’s future. The choice is also Yours.