Margin money
This query is : Resolved
CA Manish K Dhoot
(Querist)
24 December 2008
wht is the term margin money charged by brokers?
25 December 2008
Margin Money is a security deposit given by the client to the broker who accepts it as a measure of Risk Management which is calculated at a certain percentage of the exposure in market taken by the client in transaction executed on his behalf. In case of up and down there are chances of back out from the contractual trades to meet out the obligations. As a result margin money is accepted as Risk Management tool to meet out any loss caused on this account.
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