Margin trading gives you a financial leeway to buy stocks even when you do not have enough funds to purchase them. In simpler words, it is very similar to buying securities on credit. You can take a position in one or more stocks by buying or selling shares on margin. You can take a position at the beginning of the settlement cycle and square it off (closing out the position) before the closing hours of the same trading day.
Features & Benefits
- Hold the positions purchased for a long period
- Avoid squaring off the positions and blocking them on T+5 days
- Make use of the unutilized value of stocks in your DP account
- Get more leverage on the stocks
- The ability to invest more while having limited cash on hand enables you to take advantage of timely market opportunities
- You can increase your overall stock market investment with a moderately small amount of your own money