How can I pay loss in Margin Trading

#1
I am newbie to trading sector.
I have a question regarding margin trading.
If the total amount in my trading account is 5,000 Rs.
Then, I buy 20 stocks of XYZ company on margin value 20,000 with CMP 1,000 Rs.
If the price of that stock goes down from 1,000 to 600 Rs.
Then, my total loss is 20*400=8,000.
But the total amount in my trading account is 5,000 Rs.
So, Please tell me, How can I pay that 3,000 Rs BALANCE.
and thanks in advance. :)
-Bharat
 

manishchan

Well-Known Member
#2
I am newbie to trading sector.
I have a question regarding margin trading.
If the total amount in my trading account is 5,000 Rs.
Then, I buy 20 stocks of XYZ company on margin value 20,000 with CMP 1,000 Rs.
If the price of that stock goes down from 1,000 to 600 Rs.
Then, my total loss is 20*400=8,000.
But the total amount in my trading account is 5,000 Rs.
So, Please tell me, How can I pay that 3,000 Rs BALANCE.
and thanks in advance. :)
-Bharat
By transferring the balance to ur broker. Usually..broker will have a certain limit based on how much balance you have. If it goes below dt, they will sell off ur stocks much before it goes down in negative..... so best is to.. check out the details wid ur broker before taking any move.