PehlaTrade

To take a position in market a margin amount is required to be maintained in your account know as initial margin which is calculated using a software called Standard Portfolio Analysis of Risk(SPAN) and therefore it is also referred to as span margin. Along with this an additional margin is collected in order to protect brokers liability which may rise because of frequent market fluctuations. This additional margin collected by brokers is known as exposure margin. In the Indian stock market, exposure margin is always charged above the margin known as SPAN margin , therefore Total Margin = SPAN Margin + Exposure Margin Discount brokers  clear its obligation with exchange on T day therefore exposure margin collected by them is comparatively less then the brokers who clear their obligation on T-1 day. Following are some difference between exposure margin and span margin Calculation of span margin is done on the basis of risk and volatility of underl...

With the introduction of new technologies trading in the stock market has changed a lot. Earlier when BSE was formed in 1875 at that time traders and investors used to stand on floor and shout prices of stocks for buying and selling. The money was exchanged between buyer and seller and a physical copy in the form of certificate was issued to the buyer.The entire process was very time-consuming. In 1996 concept of dematerialization was introduced in share market. Physical copies of shares were replaced by electronic form and were credited and debited from the Demat account of a trader. Following are the benefits offered by dematerialization : 1)Common bank In Demat account along with shares, other financial instruments like bonds can be stored as well. Traders can use the same account to trade in stocks and bonds both. 2)Time and cost To deliver a physical copy of shares cost is involved and also it takes the time to do so. With dematerialization, this cost and time c...