Basic question about margin

[tradingnoob]

I am new to trading, so please bear with me. Thank you !

I bought some stocks on margin, and sold them off the same day. At the end of the day, the broker sent me a margin statement which said something like "Money owed by client = Rs.1234" etc. What exactly does this mean? I bought and sold the stock on margin within a few hours the same day. Do I still owe money?

Also I have been buying and selling on margin. Is there anything I should be aware of, other than the risk or larger losses? Mine is a very small account, and I have no income as I am a student. Would buying on margin etc. create problems from tax point of view, since quantity bought/sold on margin can be huge?

Thanks again.

 

[travi]

I am new to trading, so please bear with me. Thank you !

I bought some stocks on margin, and sold them off the same day. At the end of the day, the broker sent me a margin statement which said something like "Money owed by client = Rs.1234" etc. What exactly does this mean? I bought and sold the stock on margin within a few hours the same day. Do I still owe money?

You don't owe broker for the margin. At the end of the day, if your MTM is positive, that amount will be added else subtracted from your balance as loss.

Also I have been buying and selling on margin. Is there anything I should be aware of, other than the risk or larger losses? Mine is a very small account, and I have no income as I am a student. Would buying on margin etc. create problems from tax point of view, since quantity bought/sold on margin can be huge?
Thanks again.

If your income is under Inr. 2.5L in a financial year(eg. apr-2016 to mar-2017) your are directly tax exempt. Other clauses to save on tax are there, you can search for that online.