does anyone know what is margin (trading)
By umabharti
@umabharti (3972)
India
August 29, 2011 2:39am CST
can anyone answer what is a Margin ,i do intraday trading so i want to know what is margin and how it can be used ,if anyone is aware of Angel broking and trading with Angel it would be helpful.
1 response
@Simran08 (5)
• India
30 Aug 11
Hi Uma,
I use angel broking and find them really good with service. They are more customer friendly than the others. The software they use is ODIN - Diet which is also offered by Religare and a few others. I have used HDFC SEc and MOSL , but found angel muc better.
Margin trading. Lets say you want to do 100 shares of Reliance , prsent cost 756 ( lets assume 800) . You would need 100*800 = Rs 80,000 to buy them In margin trading the broker allows you to buy them by paying just 15/20/25 % of the money. You have to remember however that most brokers will expect you to close your position ( sell if you bought/ Buy back if you sold ) before close of market at 1530 hrs. Some may allow you to to do the next day , angel broking does :)
But do remember that the big players know how margin traders minds work so unless you are very nimble and sharp you will lose money.
Hope that helps . ask me inase you need to know anything else.
Sim
http://mcx-advisory.blogspot.com
1 person likes this
@umabharti (3972)
• India
30 Aug 11
thank you for the guidance regarding this subject 
.
so for eighty thousand the paying amount by the client will be on the brokers hands.If the broker allows to pay some percentage then that amount we should be able to pay,lets thing for 80000 of rupees the percentage given is 25 % so the amount for the client is 20000 .
if the shares rise to 810 means 81000 so the percentage if calculated as 25% then it is 250 for 1000 ,as 1000 is the gain.Am i right ?
if loss means decrease then also it will be the same.
tell me the time span ,becasue in the share market we can not say that today we bought tomorrow we get the gain.so how will be the client charged ?
one mistake i made twice ,i sold off five shares of bharti airtel and i could not buy it on the same day,the next day the shares went up.see when sold for a higher price we buy at low price so that we gain.i thought i can buy it next day,but this did not happen,i got message saying payinshortage,and to adjust it on the next day of trading.the next day was saturday.can u tell me what might had happened,the broker said that it would get adjusted automatically.i would had to pay a penalty of some percentage when calculated with the sale price.some 180 rupees somewhat like that.
now tell me what can i do in that situation of bhartiairtel.
friday i sold off ,saturday and sunday were holidays,29th yesterday i bought another five of airtel now it is down.
There i can not buy it ,here i can not sell it.i am really in such a position what to do ,how to trade.
see i or anyone will come to do trading for earnign not just to play or somehing.My main interest is on trading ,so tell me how can i earn permonth some amount from trading without putting or investing more and more ,because when the shares come down the Angel will ask to pay ,or the new sep reforms or instructions say that the margin which we use we get some interest to be paid.
how many days Angel allows to hold such shares ? like of intraday trading which we did using margin.
.
so for eighty thousand the paying amount by the client will be on the brokers hands.If the broker allows to pay some percentage then that amount we should be able to pay,lets thing for 80000 of rupees the percentage given is 25 % so the amount for the client is 20000 .
if the shares rise to 810 means 81000 so the percentage if calculated as 25% then it is 250 for 1000 ,as 1000 is the gain.Am i right ?
if loss means decrease then also it will be the same.
tell me the time span ,becasue in the share market we can not say that today we bought tomorrow we get the gain.so how will be the client charged ?
one mistake i made twice ,i sold off five shares of bharti airtel and i could not buy it on the same day,the next day the shares went up.see when sold for a higher price we buy at low price so that we gain.i thought i can buy it next day,but this did not happen,i got message saying payinshortage,and to adjust it on the next day of trading.the next day was saturday.can u tell me what might had happened,the broker said that it would get adjusted automatically.i would had to pay a penalty of some percentage when calculated with the sale price.some 180 rupees somewhat like that.
now tell me what can i do in that situation of bhartiairtel.
friday i sold off ,saturday and sunday were holidays,29th yesterday i bought another five of airtel now it is down.
There i can not buy it ,here i can not sell it.i am really in such a position what to do ,how to trade.
see i or anyone will come to do trading for earnign not just to play or somehing.My main interest is on trading ,so tell me how can i earn permonth some amount from trading without putting or investing more and more ,because when the shares come down the Angel will ask to pay ,or the new sep reforms or instructions say that the margin which we use we get some interest to be paid.
how many days Angel allows to hold such shares ? like of intraday trading which we did using margin.