Margin amount

hi friends
some brokerage company will give money for buying shares like if u put 1/- they will give 5 time or 10 times

did they charge any thing for that ?

what is the benefit for them ?

when we earn profit they will take form my account ?

plz explain
Replies (1)

Margin call should be maintained at their desired level. This is like a security deposit. If the balance falls, You have to pay again. There is no profit for them apart from their brokerage fees. This is a marketing strategy I believe. Besides, what is the guarantee that you are also going to get positive returns on intraday? So the trading companies are generous. Top of that, you cannot do trading with your 1/- + 10/-, as I understand all stocks will be above that range. So, you have to deposit more money in order to start trading. 

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