Thanks for the valuable information.
Can anybody tell me how margin trading works in case of negative trade.
In the sense. Lets say, my account has Rs.10,000 and with leverage of 1:20 my account margin will be at Rs.2,00,000 and If I incur losses by hitting stop loss which is at 10% I would loose Rs.20,000 which is much more than my actual investment. What happens in such a case?
Also, what benefit banks are getting by giving such high margins to customers.
Can anybody tell me how margin trading works in case of negative trade.
In the sense. Lets say, my account has Rs.10,000 and with leverage of 1:20 my account margin will be at Rs.2,00,000 and If I incur losses by hitting stop loss which is at 10% I would loose Rs.20,000 which is much more than my actual investment. What happens in such a case?
Also, what benefit banks are getting by giving such high margins to customers.