Many times you would have come across a term Margin trading. What is trading on margin and how is it different from normal trading is what is explicated here.
‘Margin” means borrowing money from your broker to buy a stock. Now the question is why would you borrow? Investors generally go for trading on margin so to increase their purchasing power so that they can own more stock without fully paying for it. That means you will pay a part of the buy price and the broker will lend you the difference.
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