What is Margin Trading? — Meaning, Definition & Example
Definition
Margin trading is borrowing money from a broker to buy securities, using your existing securities or cash as collateral. It amplifies both gains and losses. SEBI requires minimum margin of 20% for equity. Margin call occurs when your margin falls below minimum, requiring additional funds.
With ₹1 lakh and 5x leverage, you can buy shares worth ₹5 lakh. If the stock rises 10%, you profit ₹50,000 (50% return). But a 10% drop means ₹50,000 loss.
🇮🇳 Margin Trading in Hindi / हिंदी में
मार्जिन ट्रेडिंग — मार्जिन ट्रेडिंग ब्रोकर से पैसे उधार लेकर प्रतिभूतियां खरीदना है। यह लाभ और हानि दोनों को बढ़ाता है। SEBI न्यूनतम 20% मार्जिन अनिवार्य करता है।
Margin Trading (Hinglish) — Margin trading mein broker se paisa udhaar lekar securities kharide jaati hain. Gains aur losses dono amplify hote hain. SEBI minimum 20% margin mandatory karta hai.