The traders in the share market know the importance of margin funding. However there is no specific norm for this but brokers follow certain market practices only. The traders who want to have more trading on less amount need to find the lowest margin stock broker that can help him have more limit and go for more number of transactions ever day. The limit can be increased by the broker but he checks some factors before offering the extended limit to his account for trading.
Better return on low investment:
The brokers who can help in trading in different options in the market should be found out by the traders who would go for trading on regular basis. There are many options of trading in the market that include futures, options and intraday. Trading pattern in all the options is different to great extent. In order to decide the best platform for trade and earning desired profits, the factors needed to be considered are risk, benefits and investment.
Requirements of Trade:
There might be some traders who know how to trade but aware about its requirements. The first and most important requirement is to have dmat and trading account. Any broker or broking firm can open these accounts in the market. An application form is provided by the broker, one needs to fill the same and attach the requirements documents with it. The list of the supportive documents is mentioned on the form, one needs to provide any two as per the requirement.
The amount for margin fund also needed to be provided by the trader, so that he can have a limit opened in the market. The margin money acts as a base for the exposure, and the ones dealing in bulk trading should keep a check on the limit of exposure provided against the margin money. The trader prefers to have an account opened with a broker who offers high exposure to margin funds. As they know risk are linked with more amount of margin money but in addition to that there are lot benefits that drives them for the same.
Importance of Margin Money:
According to lot size and value of the shares, it is necessary for the trader to have enough balance to carry out trade. The broker offers the credit to the trader as per the margin money in case of intraday trading and that can be 10 to 20 times of margin money available with broker.
If there is enough of the balance in the available in the trading account one can have chance of more trades or else that might rejected. If one is trading and finds out that the balance is not enough in his trading account, the broker can be requested to open the credit limit and get the trade done. For this the relation with the broker should be good enough otherwise one has to balance his account first and then only can go for further trade.