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Margin

The margin is the money in the trading account for buying shares. In case of intraday and F&O trading, the margin is also called exposure or limit.

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To start trading you need money in your trading account. This money is Margin Money. You can start with as low as Rs. 1000. You can transfer this money from your bank account using fund transfer facility. The facility is available on the mobile app or trading website of the broker.

Margin money is for buying shares. Without adequate margin money, online brokers don't let you place the buy order.

Brokers use Margin word for equity delivery trading (also known as cash and carry). Brokers require full margin (100% money in your trading account) before you place an order. For example, To place a buy order of 100 shares of Reliance Industry at Rs 1000 per share, you would need Rs 1 Lakh in your trading account.

In the case of Intraday and derivatives (F&O) trading, brokers use word Exposure for margin money.

Note: Words like margin, exposure, leverage, and limit are used interchangeably for the same purpose, though they have a slightly different meaning.

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