Margin trading gives you a financial leeway to buy stocks even when you do not have enough funds to purchase them. In simpler words, it is very similar to buying securities on credit. You can take a position in one or more stocks by buying or selling shares on margin. You can take a position at the beginning of the settlement cycle and square it off (closing out the position) before the closing hours of the same trading day.
- Margin trading allows you to take benefit of short-term trading opportunities without delivery of shares.
- You can buy or sell stocks by paying a fraction of the transaction value.
- Enhances your buying power, as you need to pay only a small portion of the stock value.
- Grab the ultra-short term opportunity available in the markets
- You get a higher leverage by using Margin product.
How does it work?
- Log into your trading account with your user id and password
- Click on Buy/Sell & Exchange as NSE
- Select the company & Product as Margin
- Enter the type of order, quantity and price of the scrip
- Click on Know your Margin to calculate the margin requirement and place order
- Track your Order status in Order Book