abhishreshthaa
Abhijeet S
MARGIN ACCOUNT SHOULD BE OPENED WITH A BROKER.
INITIAL MARGIN : THE PURCHASE PRICE THAT AN INVESTOR DEPOSITS WITH HIS BROKER WHEN HE OPENS A MARGIN ACCOUNT.
THE INVESTOR CAN BORROW UPTO 50% OF THE PURCHASE PRICE OF THE STOCK.
HOWEVER, SOME BROKERAGES REQUIRE YOU TO DEPOSIT MORE THAN 50% OF THE PURCHASE PRICE.
THE SEBI SETS A MINIMUM INITIAL MARGIN OF 50%.
THE INVESTOR CAN KEEP HIS LOAN AS LONG AS HE WANTS, PROVIDED HE FULFILLS FOLLOWING CONDITIONS:
CONDITION 1
CONDITION 2
MAINTENANCE MARGIN
INITIAL MARGIN : THE PURCHASE PRICE THAT AN INVESTOR DEPOSITS WITH HIS BROKER WHEN HE OPENS A MARGIN ACCOUNT.
THE INVESTOR CAN BORROW UPTO 50% OF THE PURCHASE PRICE OF THE STOCK.
HOWEVER, SOME BROKERAGES REQUIRE YOU TO DEPOSIT MORE THAN 50% OF THE PURCHASE PRICE.
THE SEBI SETS A MINIMUM INITIAL MARGIN OF 50%.
THE INVESTOR CAN KEEP HIS LOAN AS LONG AS HE WANTS, PROVIDED HE FULFILLS FOLLOWING CONDITIONS:
CONDITION 1
CONDITION 2
MAINTENANCE MARGIN