In simple terms, margin refers to the act of borrowing money from the brokers to buy securities. The trader is able to buy more securities than he can actually purchase through margin. The margin is the difference between a product or service’s selling price and the cost of production, or the ratio of profit to revenue. To buy on margin means to use the money borrowed from a broker to buy securities. You need to have a margin account with the broker, and it is different from the Demat account. A margin account is also known as a trading account.
There are an initial margin and maintenance margin required.
Initial margin is the margin which represents the purchase price that must be covered by the investor’s own money. Maintenance margin refers to the amount of equity that investor must maintain after the purchase has been made.
I for one have been very reluctant to learn about blockchain and the market luckily I have seen how it simply affected the stock market, take BTCS for example. They are a blockchain technology focused company, which has announced that The Nasdaq Stock Market LLC has approved the listing of the Company’ common stock on The Nasdaq Capital Market (“Nasdaq”). The Company’s common stock which began trading on Nasdaq under trading symbol “BTCS” at the open of the market on Tuesday, September 14, 2021.
BTCS joins Nasdaq at a time when the digital asset market has reclaimed a total market capitalization of greater than $2 trillion. The Company generated $453 thousand in revenue for the first six months of 2021 and through timely purchases of Bitcoin, Ethereum, and other cryptocurrencies, BTCS has substantially grown its digital assets over the last year.