Want to trade in bulk? Check the service providers who offer high exposure

11:16 PM RAWAT 0 Comments

From the viewpoint of a trader who wants to deal in bulk, the margin money is one of the important factors that affect his decisions of getting associated with a particular stockbroker or broking firm. The market has ample of such service providers, and a trader needs to have a concrete reason why he wants to go for a particular broking firm. There can be any of the factors such as low brokerage, high-quality services and best of the exposure to one’s fund, which can help one trade well in the market. For a trader with huge volume a service provider who offers better exposure to his margin fund can be of great help as he can carry out trades at a high volume with the same funds compared to other trading brokers.

What is margin fund?

Well, the margin fund is an amount that one needs to offer to the broker while carrying out trade. There are various exposure limits as per which the trader is provided with credit. For example, if the margin money is 10000, and the broker offers 10 times exposure, that means the client can carry out trades to the value of 100000. Hence one can have better chances to make profits in the market. Therefore all traders who need to trade in bulk try to find the broker with the highest exposure in India.

How does high margin exposure help?

For a trader, it is necessary to trade in volume so that at a narrow margin of profit also he can sell the shares and make a profit. If he has limited investment and cannot increase the margin fund, he may have to face the limit of the overall fund with the help of which he needs to trade. To avoid the same one needs to go for the broker who can offer high limit. If one has margin money of 10000 and the broker offers 10 times exposure that means he can trade till the value of 100000 but if the broker offers a limit of 20 times than he can trade till the value of 200000 which means he can trade in more amount and earn more profit.

If the trader has bought shares of 100 Rs in the first case, he can go for 1000 shares only while in the second case he can buy 2000 shares. If he sells the shares at 105, he can earn a profit of 5000 in the first case while in the second case he can earn 10000 profit. Hence the broker who can offer more exposure can be of much help to the intraday traders.

However, here, one needs to note that more exposure means more risk also, and hence, one needs to use the credit prudently. Those who know how to trade in the market in any condition the broker with more exposure can be the best option with the help of whom he can trade more and earn more profit with every trade when the session is live.