What is the reason to create a Margin pledge?
Jainam Broking Limited
Last Update 2 jaar geleden
Pledge can be created for the following reasons.
a) To avail margin funding facility if you wish to carry forward your debit.
b) To avail margin benefit for taking intraday exposure.
It allows investors to leverage and invest in deals without assuming the full risk at the first stage.Your risk exposure is restricted to the securities you have pledged as collateral when you use pledging. In the event that you are unable to pay back the margin, the broker sells the stocks in the margin account to recover its liabilities.