Definition
Trading with borrowed funds from the broker, using securities as collateral.
Understanding Margin Trading
Margin Trading is an important concept in stock market trading. Understanding this term will help you make better trading decisions and communicate effectively with other traders and financial professionals.
Key Points
- Basic Definition: Trading with borrowed funds from the broker, using securities as collateral.
- Category: This term is commonly used in Trading Basics
- Relevance: Essential knowledge for traders operating in Indian stock markets
Practical Example
When trading on NSE or BSE, you'll encounter margin trading regularly. For example, understanding this concept helps you analyze market conditions, make informed decisions, and manage your trading positions effectively.
Related Concepts
To fully understand margin trading, you should also be familiar with related trading concepts. Check out the related terms in the sidebar for a comprehensive understanding of this topic.