Intraday trading margin allows traders to take positions larger than their available capital. Brokers provide leverage based on stock volatility and regulatory limits.
For example, with a margin of 5x, a trader with ₹20,000 can take a position worth ₹1,00,000. While this increases profit potential, losses also increase at the same rate.
Margin requirements can change during the day based on market conditions. If margin falls short, brokers may square off positions.
Understanding margin is critical to avoid sudden losses and penalties.
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