Angel Broking is one of the leading stockbrokers in India, offering a wide range of financial services to its customers. One of the key concepts that investors need to understand while trading in the stock market is the concept of margin trading. In this context, total margin refers to the total amount of margin that is required to be maintained in a trading account to trade in the stock market.

What is total margin in Angel Broking?

Margin trading is a facility provided by brokers to their clients that allows them to trade in the stock market with a margin or a percentage of the total trade value. This means that the investor can trade in the stock market with a fraction of the total amount required to buy or sell a particular stock.

Total margin in Angel Broking refers to the amount of funds that a trader or investor needs to maintain in their trading account with the broker in order to cover any potential losses that may occur due to their open positions in the market.

In Angel Broking, the total margin is the sum of the initial and exposure margins. The initial margin is the minimum amount of margin that is required to be maintained in the trading account before placing a trade. The broker determines this margin based on the risk associated with the particular stock or security.

On the other hand, the exposure margin is the additional margin that is required to be maintained in the trading account based on the volatility and risk associated with the stock or security. This margin is calculated as a percentage of the total value of the trade and is used to cover any potential losses that may occur due to fluctuations in the market.

For example, in the equity segment, the margin requirement for intraday trading is typically 10-15% of the total value of the trade, while for delivery-based trading, it is 50% of the total value of the trade. In the commodity segment, the margin requirement may range from 3% to 20% of the total value of the trade, depending on the specific commodity being traded.

In addition to the margin requirements set by Angel Broking, traders and investors must also adhere to the margin rules set by the regulatory authority SEBI (Securities and Exchange Board of India). SEBI sets the minimum margin requirements that brokers must follow while providing margin funding to their clients.

Margin trading can provide significant leverage to traders and investors, allowing them to take larger positions in the market than they would be able to with their available funds. However, it also involves higher risk since losses can exceed the initial margin deposit. As such, it is important for traders and investors to carefully manage their margin requirements and ensure that they have adequate funds to cover any potential losses.

Conclusion

The total margin in Angel Broking refers to the amount of funds that a trader or investor needs to maintain in their trading account to cover any potential losses due to their open positions in the market. The margin requirements may vary based on the underlying asset class, trading instrument, and regulatory requirements. Margin trading involves higher risk, and traders and investors must carefully manage their margin requirements to ensure that they have adequate funds to cover any potential losses. Angel Broking provides a range of tools and resources to help traders and investors manage their margin requirements effectively.

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