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Saturday, August 3, 2013

What Is Margin Money

The share price fluctuation risk associated with the stock exchanges to reduce the margin money is provided. In this situation, buyers will have to pay your broker a million bucks. Today purchased shares to the buyer have to pay your broker the next day. The exchange broker pays a day later. Appointment times the total amount the buyer can not pay your broker. Like a million bucks to buy stock investors (buyers) as advance your broker has to pay some amount. The initial margin call token money.

Why is this important margin:

15 per cent margin money, the investor will have to buy one lakh 15 thousand shares. If the share price rose by Rs 10 to share the vendor would sell at a loss. The deal does not meet the margin money is forfeited. Therefore, the full amount of the investment on the buyer and seller is forced to sell the shares.

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