Hi,
Since I don’t know the context of your query, I will explain what is margin money in the terms of the home loan, education loan, and trading.
What is Margin Money in Home LoanWhen you apply for a housing loan, the amount of money you pay to the lender as security is the margin money. It is commonly known as a down payment. If you are planning to take a home loan, then let me tell you that you will have to contribute this amount upfront to the loan amount. Borrowers usually pay up to 20 percent of the total cost of the property as a down payment or margin money, while the rest of the cost of the property is financed by the lender. The margin money acts as a sign of trust between the borrower and the lender.
What is Margin Money in Education LoanSimilar to the margin money in home loan, in terms of the education loan, the margin money is the amount that is paid by the borrower while the rest of the amount is paid by the lender.
What is Margin Money in TradingIn share trading, margin money focuses mainly on the options and futures side of the stock market. This amount is collected as a collateral which the trader is required to deposit with the exchange. Not only does the margin money show commitment of the trader but it also partially covers the risk in the trade being open for the day. Check out different conditions under which you are required to pay margins.
When you sell options
When you sell or buy futures
When you take intraday position (short or long)
When you buy stocks on margin via borrowed money
I think you will like these answers as well:
Can I get home loan without down payment?
How to buy property with no down payment?
How much down payment for home?
Now you know what is margin money in loan and trading.
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What is margin money?
Pinku
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2021-12-07T18:26:34+00:00 2021-12-09T12:16:14+00:00Comment
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