What is Margin Funding? Risks and Advantages

What is Margin Funding?

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 and requests the 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.