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Q.

What is the difference between margin & delevary

Tags: money, education, entertainment
Asked by soraj saha, 16 Oct '09 09:20 am
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Answers (2)

1.

What is the difference between Delivery Versus Payment (DVP) and Margin Trading?

Delivery Versus Payment refers to where stocks are purchased and marked for delivery with the total value of the trade deducted from the Customer's account thus reducing the corresponding cash balance in his/her account. In this manner he/she can only purchase and sell stocks that are less than or equal to the amount of cash deposited by him.

Margin trading is a type of account used to provide clients with additional funds as a multiple of their cash deposited. If a client places the basic account opening requirement of Rs. 25,000, he/she is provided a trading limit that is five times the amount i.e. Rs. 1,25,000. The basic amount is calculated as 20% of the trading limit.
Source: AKD TRADE.COM
Answered by mano valappil, 01 Jul '11 01:26 am

 
  
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2.

MARGIN:

the boundary line or the area immediately inside the boundary
an amount beyond the minimum necessary; "the margin of victory"
the amount of collateral a customer deposits with a broker when borrowing from the broker to buy securities
gross profit: (finance) the net sales minus the cost of goods and services sold
the blank space that surrounds the text on a page; "he jotted a note in the margin"
allowance: a permissible difference; allowing some freedom to move within limits

DELIVERY: ...more
Answered by Jairam Kshirasagar, 16 Oct '09 09:24 am

 
  
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