What Is Margin Money – How to Use Margin Money in the Share Market

While trading in the share market, you hear a lot about margin money, you will also find many people advising you to use margin money properly while trading in the stock market or buying shares in the stock market. Otherwise, you may have to bear the loss.


WHAT IS MARGIN MONEY


So today we will learn about margin money in this post, what is margin money.


Before knowing about margin money, we first need to know about the trading account.


WHAT IS A TRADING ACCOUNT?


The trading account is similar to the current account of our bank. Just like we do money transactions and keep the money in the current account of our bank, in the same way, we use it to buy and sell shares on the trading account.


A trading account is the only account with the help of which we can trade in the share market and also use margin money.


WHAT IS MARGIN MONEY?


Margin Money is a facility we get on the trading account. In which the amount of money we put inside our trading account goes to double or triple or 5 according to a percentage.


For example, let's assume that the broker with whom you have opened your trading account. He has given you the facility of 5% - Margin Money, so if you put ₹ 10,000 in your account, then according to Margin Money, your account becomes ₹ 50,000.


Now you can trade in the share market with the help of ₹ 50,000, just keep in mind that when you are trading in the share market and if you have a loss in it, then you will also have to pay the margin money to your broker...


So whenever you are trading, keep in mind that you put Stop Loss & Target so that you do not lose and you also get your fixed profit.


HOW TO USE MARGIN MONEY?


When the turn comes to trade in the stock market, then the fear of loss remains in the mind of every trader. So when you go to trading then the question comes to your mind whether we should use margin money while trading or should we trade without margin money.


If the same question comes to your mind? So they have a simple answer. Whichever stock you are going to trade and you think you can make a profit on this stock then you use margin money but if you are not sure then don't use margin money.


If you do not want to suffer much loss in the stock market and want to earn profit at the same time. So you can also do that with the amount of money you have invested. Use margin money of the same amount, this will not cause you much loss and will also make a profit.


Now you have come to know about margin money, so now you should know about trading, how to trade?


If You Like This Post Of Ours, Then Share It With Your Friends And If You Have Any Questions Related To Margin Money Then You Can Ask In A Comment Box.

AKASH TIMES

I AM AN ENGINEER BY PROFESSION BUT BLOGGER IS MY OLD DAYS DREAM TO CREATE MY OWN SITE FOR THOSE WHO ARE CURIOUS ABOUT MY BIRTHPLACE THEN I AM COMING FROM (INDIA). THE CURRENT CITY LIVES IN NAVI MUMBAI, INDIA

Post a Comment

IF YOU HAVE ANY PROBLEM PLEASE FELL FREE TO CONTACT US BY - AKASH TIMES

PREVIOUS POST NEXT POST