There are two types of margin trading, one that is used for intraday trading and the second where the trader holds the long position (Overnight). In both these scenarios, the percent of margin provided by the broker varies. Margin facility is available for equity, intraday and Futures & Options (F&O).
If we have to explain margin trading in simple terms - it means trading on borrowed money. Let's take a closer look at how it works and figure out who should do it and why?
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