The collateral deposited with a broker to cover the risk of a trade. In F&O, initial margin and maintenance margin are required. In intraday, brokers offer margin funding for higher exposure.
Margin
Related terms
The lowest price at which a seller is willing to sell a security. Also called the offer price. The difference between ask and bid price is the spread.
The weighted average cost at which you purchased shares of a stock, calculated by dividing total cost by total quantity. Used for P&L calculations in UseMoney.
One-hundredth of a percentage point (0.01%). Used to describe small changes in interest rates, yields, or expense ratios. 100 basis points = 1%.
The highest price a buyer is willing to pay for a security. Together with the ask price, it forms the bid-ask spread.
The commission or fee charged by a broker for executing buy or sell orders. Discount brokers in India typically charge flat fees (e.g., Rs 20 per order) or zero for delivery trades.
Current Market Price. The latest traded price of a security on the exchange. Used as the reference for real-time P&L calculations.