Explained: What Stock Market Margin Norms Mean for Investors?



Stockbrokers in India offer a wide range of services to their customers. Have you heard of the Margin against Securities/Shares service? How does Stock Margin Work? This article will give you a complete picture. Before we begin, keep in mind that to take advantage of the Margin against Shares (MAS) benefit, you must first register an online free Demat account. Some stockbrokers in India provide a value-added service called margin against shares. 


Customers who own shares with them are eligible for the MAS facility. MAS stands for "loan against shares" and is also known as "collateral margin." It is a loan against shares with an agreed-upon interest rate. Simply said, margin against shares allows clients to receive the margin money they need for trading by using the shares in their Demat account. To add to that, it's critical to grasp how to use any of the facilities before we start utilizing them because your hard-earned money is on the line. As a result, we will be exploring the subject in this post.


To begin with, when an investor acquires the stocks or securities from the borrowed money it is referred to as buying on margin. A margin account is created for this end. 

 

Comments

Post a Comment

Popular posts from this blog

How To Open A Demat Account & What are Demat Account Charges?

Image
With the introduction of the Depository Act, 1996, the Securities and Exchange Board of India has made it mandatory to execute trading in the stock market through digital mode only. The Depository Act has introduced a dematerialized system for trading in stocks, bonds, government securities, and other types of securities. Prior to dematerialized trading, stock exchanges offered investment opportunities with physical and paper from securities.  Technological advancement has made it easy for investors to participate in the stock market without any hassle. Multiple parties play an important role in trade statements that usually operate on the ‘T+2’ days system. These participants include issuing companies, stock exchanges, brokers/depository participants,  depositories, and investors.  Under the digital investment system, you need a platform that will hold your financial securities along with digital trading. The Dematerialization Act has provided the concept of Demat accoun...
Read more

What Is The Perfect Way To Invest In Stock Market

Image
Time and again investors have resorted to the stock markets to garner those extra bits of returns. Although the markets are volatile, they have constantly been giving support to a large investor base. At times, it may not seem such a great idea to invest in the markets, given the high volatility and risk associated with them. You may choose to stash your savings safely rather than bet on them. However, a balanced and systematic approach to the stock markets can help you gain returns and may even get you enormous profits.  The basis of gaining profits lies in what you want to reap. Understanding your short-term and long-term requirements helps you choose suitable investments. To invest in the stock markets, you must open a Demat account .  You can make the most out of investing as long as you stick to your fundamentals. A systematic approach toward the markets helps an investor enhance their portfolio to meet goals and for wealth creation. A key to successful investing is under...
Read more

How To Invest In Share Market Via Trading App?

Image
 Mobile trading apps give multiple trading options with an easy-to-use interface. Find opportunities in stocks, bonds, government securities, digital gold, mutual funds, exchange-traded funds, and much more on these apps.  How to Invest via a Trading App To start investing using a trading app, you should have demat and trading accounts with the stockbroker. The broker will share a link to download the trading app via SMS or email once you sign up or you can find it at Google Play Store or Apple Store.  Once downloaded, you need to enter your user ID, and password received on your email ID from the broker and PAN details to log in to the app.  You will see a watchlist where a few stocks are already added. In the best trading apps , you are allowed to make your watchlists for different segments and sectors.  You can get options to check top losers and gainers, 52-week low/high, active volume, IPO (initial public offering) performance, and various other informatio...
Read more