The Brokerage Rate You Must Know


Oct 31, 2019 ,

Those who love to trade in the share market it is necessary to know some of the basic things. It is the market which offers grand opportunities to everyone to make profit as much as one can but the only condition here is one needs to know the market well. One needs to have skills to identify the opportunities when to hit which type of trade. There are also some more things such as the opening of Demat and trading accounts, brokerage and margin funding as well as exposure that one must know. Hence one who is not aware of these primary things must either refrain from trading or learn them before going for the trades.

The broker and his role:

In this market the sharebroker is the key person who proves of immense help. He is a mediator, who hunts the clients, help them open accounts and trade. Many times the brokers also support the traders for trading with the help of their research and advice. For their services they get an amount which is known as brokerage. The amount or rate of brokerage varies from broker to broker. He can also help the new traders to open demat and trading accounts which are primary requirements.

The margin money:

Those who deal in this market knows that they need to fund the account first and on the basis of the fund only they are provided credit which can help them trade. The credit is known as exposure. One can check to know important things about margin and exposure as well as low brokerage. For the casual traders the brokerage rate and margin money may not be big issues but for those who want to trade in bulk they are very crucial to check.

For the traders there are different options available in the market with the help of which they can trade but they must know the requirements of each of the options and deal prudently. Every trader loves to have more exposure on his margin money but the broker or broking company cannot offer the same as there are also risks attached to higher exposure. Hence those who offer more margin money and go for volume-based trading can get more exposure from the company but the limit for the same again varies from company to company and trader to trader.

In every segment there are various requirements of minimum margin and as a prudent trader one needs to check the same first. The probability to earn and risk to lose also vary in different options. The intraday option is the one that is mostly preferred by the traders as it has low investment and not high risk. The probability to earn in this option is also good as one can see the price movement in some of the shares regularly which can help him get little profit with every trade. However, the trades must be done after a proper check of brokerage rates only as one may have to square off the position at narrow margin also.