What is Margin Trading?
Margin trading is a special service offered by broking companies to its customers, wherein you can subscribe and get easy finance to buy winning stocks when faced with a shortage of funds. With Margin trading, you can get upto 50% of the value of the stocks.
For instance, if you choose to buy 1000 shares of Company X at Rs. 1,000 each, then the total valuation will be Rs. 10 lakhs. Through this scheme, you can get upto 50%, i.e. Rs. 5 lakhs at 16% rate of interest.
