Margin Calculator| How is the Margin Calculated?

Have you ever spotted a stock, and your gut tells you it’s time to make a move? But wait! How much margin can you afford? What’s the risk? These questions force you to stop. Margin—the financial cushion that allows you to trade beyond your actual capital—holds the key. It’s the bridge that allows traders to borrow funds from a broker to expand their buying power in the market. It’s crucial because it enables you to take larger positions than their initial investment would otherwise allow. But calculating it manually? A tedious task, prone to errors. That’s where the margin calculator comes into play. Now, what about the working of a margin calculator, types of margins, and how is the margin calculated? In this blog, we know about how to use a margin calculator and its benefits.