What is Margin Amount in Trading?

What is Margin Amount in Trading?

To trade in Futures and Options segments, a small upfront amount is required. Brokerages provide the leverage on this margin amount as per their policies. Margin amount is the minimum percentage of the total transaction value which is required in order for the investor to take an intraday/delivery position in Futures segments or in Options shorting. 

Check out our Margin Calculator for margin requirements for various instruments and order types.

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