The stock market is a known platform where anyone can enter and trade in the market. This market offers various segments in which one can deal. However, it depends on the trader for which platform he wants to go. As per the market experts, the intraday trading option is most preferred by the regular traders.
What is intraday trading?
It is the type of trade where one needs to buy and sell the shares in the same trading session. If a trader buys some shares he has to sell them in the same trading session. If one fails to do so the transaction is converted to the delivery option. As far as the brokerage is concerned, a delivery option has a higher rate of brokerage compared to the option of intraday transactions. Another notable point is one does not need to have huge margin money in his account if he wants to go for intraday trading as he can have good credit on his margin money. This can help him to have a good turnover in the market which can also support him to have excellent profit regularly.
For a trader, it is necessary to know how much exposure he can have for his margin money. The simple logic here is better exposure leads to more trading, which again leads to more profit. The ultimate aim of every trader is to make more profit with his trading. In the intraday option, one has to face little risk and invest a low amount. The earning probabilities in this option are quite better than many other options. Those traders who want to go for bulk trading need to have a broker who can offer trading facilities at a low brokerage rate and high exposure. They search for low brokerage high exposure stock brokers in India. This is a rare combination that one can get only if he has better credit and a proven record of volume-based trading.
Why do the brokers hesitate to offer high exposure?
It is a human tendency that he goes for more trading if is given much credit or high exposure. Usually, traders who go for bulk trading have good command on trading. However, mistakes are always possible and the same can happen with veteran trader also. If a trade goes wrong trade may how to lose a lot of amounts which can lead him to debts. In such a situation the broker may have to run behind him to get the due amount. Due to such probabilities, the brokers avoid offering more exposure than a specific limit. However, there are always exceptions to various rules and the same can be the case with a particular trader also.
If the broker is aware of the financial condition of a trader he can offer the services with low brokerage rate and high exposure. Generally in this market, there is no specific condition how much credit the broker has to offer to the trader. Hence it depends on the profile of the trader as well as his relationship with the concerned broker. If they have good relation the client may get service from the broker at a low rate of brokerage as well as high exposure.