What is Margin Funding?

9 August 2022
2 mins read
What is Margin Funding?

It always feels great to get a little more – with margin funding you can have that. But first learn about margin funding with Angel One’s fun-to-learn 60sec videos that will explain the concept of margin funding and also to help you learn the basics of equity & share-trading.

Margin funding, basically means borrowing some funds to complete a trading purchase when you have insufficient funds in your trading account. “The exchanges have an institutionalized method of buying stocks without having the capital through the futures market.” Here’s an easy-to-understand explanation.

Transcript :

Meet Ashish. He is an active trader at Angel One and has built a sizeable portfolio in the past few years. He smartly makes use of a facility called Margin Funding. Whenever he falls short of funds to buy shares, he calls dealer at Angel One to provide him with the shortfall amount. His dealer instantly facilitates the amount to his account so that he can complete the transaction This is a short term loan facility that Ashish gets from Angel One at an agreed rate of interest. By making use of this facility Ashish can buy shares even if he does not have the entire amount to pay for the transaction. Like him, you too can make the most of margin funding facility and increase the probability of making profits.