Margin Trading Facility
Badjate Stock & Shares Pvt. Ltd. offers Margin Trading Facility to its Clients.
Normally clients buy and sell stocks with their own money. However, some specific
stocks may look attractive at some point in time either because of market conditions
or some sector/company specific news. If clients don’t have the required funds to
trade in a particular stock, then the client can opt for margin trading facility.
Margin Trading facility helps clients to trade in stocks where they are required
to put in certain percentage as the margin amount (similar as a down payment in
any loan product). This margin amount will vary from stock to stock, Badjate Stock
& Shares will fund the rest of the transaction so that the clients are able to purchase
these share with an interest charged as and when clients give consent and register
himself for MTF Segment and avail the Margin Trading facility. The interests are
applied to the Margin Trading Account unless the clients decide to make payment.
There are restrictions on the stocks; clients can buy on Margin Trading. The Securities
and Exchange Board of India regulates which stocks are marginable. As a general
rule and practice we don’t allow clients to purchase penny stocks on Margin as risks
involved with these types of stocks is high. Badjate Stock & Shares can independently
decide not to margin certain stocks, so check what restrictions exist on your Margin
Account. The buying power of a margin trading account changes daily depending on
the price movement of the marginable securities in the account.”