What is margin intraday trading?
Know More About Margin Intraday Trading
Intraday Trading is done by traders who want to make money from the expected upward or downward movement in price of a stock during the day but have limited money for trading. Margin trading is an easy way of making a fast money using others money. Intraday Margin is a best solution for day traders who have small capital but want to make money. A Broker gives leverage or intraday margin up to 5 to 10 times of the money or stocks held in the trading amount depending on broker to broker where the trader’s holds his demat cum trading account.
Today in the modern world every broker provides margin for day trading and it differs from broker to broker. In this system a margin account is maintained by which you are able to buy more quantities of a stock either in cash segment or futures segment, it’s like the broker is lending the money to buy/short shares and keep your stocks with him as collateral or security.
Intraday Margin – Process: The process is very simple; you will have to pay an amount of money for example 25,000 upfront to the broker in cash. On this the broker will give you 5-7 times of margin to trade. The margin money intraday trading that we are giving can be used by broker to recover his money by squaring off our trades if we our trade goes wrong and we don’t pay the loss to him.
A traders needs to square off his holding position at the end of every trading session. If he has bought shares, he has to sell them. And if he has short sell the shares, he will have to buy them at the end of the session. If he wants he can take the delivery of the shares by paying the extra money to the broker. If at any point of time, if we don’t square off our open orders, the broker will automatically square off our position in the market at a stipulated time.
Example of Margin based Intraday Trading
Mr Deepak Buy’s 100 shares of RBLBANK with CMP of Rs. 500. The total trade value of this transaction will be (500*100) = Rs. 50,000. If Deepak is buying with an intraday perspective using the intraday margin to square off the position same day under Margin Product, he would be required to pay only the Margin% required for the amount. If the margin required is 20%; then the amount required for the transaction would be 20% of Rs. 50,000 i.e. Rs. 10,000. So instead of 50,000 even if he has Rs 10,000 in this account he can do the trading.
Mr Deepak a day trader if sells the 100 shares of RBL Bank after an hour at 520, he will end up earning Rs 2000/- (20 Rs on each share x 100 shares)
We provide daily one equity call and 2-3 fno calls daily and to trade in our all calls, you should have 1.5 Lakhs to 2 Lakhs of capital with 5-7 times of margin. Even if you have 5000 or 10,000 of capital, still you can trade in our all calls in equity segment. To know more about trading our Fno calls in cash please visit: http://www.a1intradaytips.in/trading-fnocalls-in-cash-segment.html
We are here to help small day traders to make money using intraday trading, if a broker is giving u a good margin, you can earn lot of money using your small capital.
If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.