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What is Margin Trading?
short by / on Monday, 24 February, 2025
Margin trading lets investors borrow from brokers to buy more stocks. SEBI regulates it in India, allowing brokers with ₹3 crore net worth to offer up to 50% margin on select 'Group I' stocks. While it amplifies profits, it also magnifies losses and incurs interest charges. Investors must maintain margin requirements to avoid margin calls and potential stock liquidation.