What is margin Trading?

Margin trading is the practice of borrowing funds from a broker or financial institution to trade financial assets that you don't fully own. Essentially, you're leveraging borrowed money to increase the size of your position beyond what you could afford with just your own capital. This allows you to potentially magnify profits, but also increases the risk of larger losses. Margin trading can be a powerful tool for traders looking to amplify their returns. Always assess your risk tolerance, and consider starting with smaller margin positions until you become more comfortable with the mechanics of margin trading.

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Capital Requirement for Margin Trading

Trade Larger Lots with Less Upfront Capital

Exchange Intraday Margin Holding Margin
NSE Future 500x 60x
NSE Option 7x 4x
MCX 500x 60x
Currency 500x 400x

Core Benefits of Margin Trading

Access to Larger Positions

Margin trading enables you to increase your exposure to various financial assets such as stocks, currencies, commodities, and more, without needing the full amount of capital.

Leverage to Maximize Returns

Margin allows you to maximize your return on investment (ROI) by controlling larger positions for a smaller initial outlay. The return is calculated based on the total size of the position, not just the capital you invested.

Capital Efficiency

Margin trading allows you to use less of your own capital for larger positions, which increases your capital efficiency. The ability to control more value with a smaller amount of your own money means your funds can be allocated elsewhere.

Diversification of Portfolio

More Market Opportunities: With margin trading, you can access more capital to trade a diverse range of assets. This helps you to diversify your portfolio and reduce risk by spreading investments across different asset classes.

Increased Control Over Trade Timing

By using margin, traders can close positions before the end of the trading day to avoid being affected by overnight risks. It also allows you to stay in control of your trades, especially during high-risk events like earnings reports or economic policy announcements that could happen after hours.

Focused Trend Analysis

With margin trading, traders can use technical analysis to follow trends more precisely. Indicators like the Moving Average Convergence Divergence (MACD) or Average Directional Index (ADX) help identify whether an asset is trending, enabling more strategic entry and exit points.

Zero Charges

No Tax, No Fees, Trade without worrying about extra charges for deposits, withdrawals, or any other services.

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