Traders are well known of the margin requirement a stock broking company imposes upon the investors. It is the minimum balance an investor needs to have in his demat account in order to be able to trade.
Alongside other facilities, a stock broking firm encourages it investors to trade on higher scale basis, more that what they have in their account, in order to boost transaction rate.
What is Margin Calculator?
Just like an applicable brokerage charge levied by a stock broking house varies, so does the margin limit provided by them vary. There is no denying each brokerage house sets its own structure, and while you consider a broking house which has minimum margin maintenance, you would want a house which gives a greater leverage to the margin.
It is the exposure you will get, more than what your account contains. Such leverage is provided greatly for intraday trading but is also proportionately provided for other asset classes such as delivery, commodity, currency and F&O.
So, based on your interest in trading, the calculator lets you know the extent in which you can place your order, on the basis of the amount you have in your account.
Experience all stock brokers margin calculator here – https://stockbroker99.com/margin-calculator/
How to use Margin calculator?
The margin calculator has the leverage provided by the company embedded into it, for you to calculator the actual availability of your stock purchasing power, alongside the increase in your purchasing power as a result of leverage provided. Here is what you need to keep noted of, in order to carry out the calculation procedure.
Inputs Details
You will need a set of three inputs in order to be able to calculate the available margin and the margin you will further be exposed to, with the company’s leverage.
First input requirement is the search scrip, wherein you need to select the scrip wish to trade in. The leverage provision would vary based on the scrip you select, and it is purely a result of the scrip’s performance.
Second requirement is the available margin, which is the amount you have left in your trading account.
Final requirement is the share price, as in the price tag given to the scrip.
Outputs Details
Outputs figured out would be the available margin and the exposure margin provided by the company. You will be displayed the increase of exposure, i.e. how many times the actually margin availability you will be entitled to, and the number of shares you can buy if you wish to stick up to the available margin and wish to trade more using exposure margin.
Margin calculator has been fixed up with the scrip and the leverage a company provided, specifically. All you need to do is, select the stock broker you trade through, followed by which you can enter in the inputs as specified before, and hit the calculate button. The available margin result and exposure margin result will be displayed to you in a few seconds, instantly.
Find out all Input & Output details of Zerodha’s Margin in this Zerodha Margin Calculator. Click on this link & find out everything about Zerodha Exposure.
Benefits of Margin Calculator Usage
Margin calculator is a really handy tool, which can never get complex. Your calculations will flow out easily, and so are the inputs needed, by your side. All you need is to enter the details and get results.
Check out the benefits you can avail for while you use the calculator.
- Plan out for your strategies easily using the calculator and make an estimate of trades which can be profitable for you.
- For the days, when you have the perfect strategy to execute a profitable deal, but are low on funds, the margin provision lets you deal for more, helping you implement your strategy for real.
- The excess of leverage provided in clearly mentioned in the table.
- The margin differs as per the scrip and a higher percentage will be catered for scrip which is performing well, likewise you will be able to know of the high end scrips as well.
Here you will find Angel Broking Margin Calculator where you will experience all these above mentioned benefits. Click here to check.
Conclusion
Before you actually carry out transactions using the exposure you are provided with, you need to know that excess of limit provided by the company is to be returned to the company with certain amount of loan. The leverage is basically a loan provided by the stock broking house, which is returnable in nature after a fixed period of time.
Make the most of calculator provided and use it to the full of it potential, so you can make a great return on the money you invest.
