Stocks To Keep A Close Eye On

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deneb

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I am utterly confused with the meaning of margin trading.

Defintion on googling: "Margin trading is buying stocks without having the entire money to do it"

So is not intraday trading a type of Margin trading? Or is there something called "margin trading" available with the Online Broker, which we can use?

Please someone can clarify so that I can understand the discussion about margin trading.
Intraday trading refers to opening and closing a position in a stock in the same trading day. This can be buying and selling to capitalize on a potential rise in a stocks value or shorting and covering the short to capitalize on a potential drop in value.

Most brokers allow clients to take an initial position in a stock that is 5 times the value of their account , but some brokers give more leverage (i.e. 20X). For example, a person with 10,000 in his/her account can take a 50,000 position in a stock for day trading purposes. Usually this amount is not allowed to be held overnight.

If you are using only the money in your account and close your positions the same day it constitutes intraday trade.

If you use your brokers leverage money along with your account money to trade and then close position the same day it becomes a intraday margin trade.
 

gauharjk

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gauharjk

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Goofy Bhai, Talisman Bro,

If you guys are reading this, please click on "Post Quick Reply" button and say something...
 

gauharjk

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gauharjk

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