For those who look for a considerable and regular profit from the stock trading it is necessary to find the service provider who can help them at every stage of trading. There are ample options for the traders in the share market that can help them get the best profit but one needs to know the techniques of trading as well as a few parameters which can help to have consistent trading. Here one can know the basic criteria that can help him get the required profit and best trading.
Find the accounts first:
One needs to have demat and trading account first. Here one must know that without these accounts he cannot deal in this market. Both of these accounts are mandatory by the SEBI and hence if one does not have them he needs to get them opened. The moment one gets the account opened he can start trading if he has ample margin money paid to the broker.
What is margin money?
For the trading purpose the trader needs to open an account with the broker. However, he needs to pay for the trades first for which he needs to give some money to the broker which is called margin money. The broker offers some credit on the margin money given by the client. One who wants to have more credit on this amount needs to find the broker who offers the highest intraday margin and deal with him. Having more exposure to the margin can be much beneficial if one is interested in having bulk trading.
Is it good to have more exposure?
For the prudent traders who work in volume only it can prove as a good option. The use of the margin must be done after understanding the hazards for the same. If a trader goes for a wrong trade he may have to lose a lot of amount as he may have used best of his margin exposure. Margin exposure means you as a trader gets some more credit that can be used to trade in the market. If you have to bear the loss and your loss amount is more than the margin amount than you have to pay the rest of the amount to the broker which may be beyond your financial capacity also.
However, while offering the margin exposure the companies check a number of things and in case the client is not able to pay the due amount they have many options for getting the same. But afterall the exercises the profile of the client may be spoiled which no company prefers to go for. Hence while opting the margin exposure even clients have to be highly careful as doubtlessly it is beneficial but at the same time it is much risky also.
For the clever traders it can be a good weapon to make more money with little investment as they almost go for 20 to 50 times of their margin amount which means a lot in this market.