What is Margin Funding?

It is short-term loan facility that investors can avail at an agreed rate of interest to make up for the shortfall they may face while buying shares and trading in futures and options. The investors pays an interest to the brokerage for borrowing to buy shares or trade. An investor can call up the relationship manager of the brokerage with which he has a demat account to provide him with the shortfall amount or he can select this funding option online on the brokerage’s website while placing the order.