Tips and Tricks


Lack of capital is one of the most common problems for stock market traders. To help traders with this problem, stockbrokers now offer the margin facility. For instance, a broker can provide you with a margin of 5x on your capital. This means that if your trading capital is Rs. 1 lakh, you can still buy shares worth Rs. 5 lakhs.

However, trades placed with margin are generally required to be squared off before the market closes on the same day. While the margin facility may be beneficial for professional traders, beginners should avoid using it as it could result in severe losses. Only trade with the capital you have and use the margin facility after gaining some experience.

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