Are You Looking For the Broker Who Can Offer Lowest Margin in India?

By Akshay Sharma December 31, 2019 Finance

For those who want to start trading in share market it is much important to offer margin money to the broker or concerned broking company. There are various options in the market in which one can trade but each of the option needs different margin money. In cash segment one can go for intraday trading where one needs lowest margin money. However, if one looks for bulk trading it is necessary for him to check the broker who can offer services at lowest margin in India. This can be checked with the help of internet as well as personal visit to various companies.
The margin money is the amount on the basis of which the credit is offered to the client by the broker or the company. There is no standard rule in this market as far as the margin money and its limit are concerned and hence every broker or broking company follows own rules. Hence one who wants better exposure for his margin needs to check the same with different companies and go with one which can offer better exposure at lowest margin in India.

Why is margin exposure important?

The client can trade in a specific segment within the range of his credit limit. The credit is provided on the basis of fund which one may have deposited to the concerned broker. Those who want to opt for bulk trading need more margin but if they don’t have that much margin and the company or broker offers more credit, still one can trade in a specific segment. The more credit can help the trader to have more trades which can lead him to earn more profit and the broker more revenue in terms of brokerage.

The calculation:

The margin money and credit are calculated together. There are many traders who just want to trade depending on the credit limit offered by the concerned broker or company. The client who wants to have trade of 100000 every day he needs to pay 10000 as margin money to the broker if the broker extends ten times credit to him for margin. However, if the broker offers twenty times credit he can have trades up to 200000 which can make a huge difference to the probability of profit making for him. The trading can be done with the help of extended credit in such cases. For the bulk traders more credit can be of immense help as they don’t need to pay more margin money and the credit can keep on rotating with the each trade.
For the brokers also it is better to offer a better credit as the client can go for more trading which can help one to have better revenue in the form of brokerage. There are many traders who know the right way of trading and make the best of the use of the credit offered to them. They can wisely balance the lowest margin money and credit which can add value to their portfolio.