What is margin buy and what is buying on margin? This is a frequently used term in stock markets and as the name suggests you can do margin buy or you can also do margin sell.
The big question that mutual fund traders have on their minds is can I buy mutual funds on margin? That is an interesting question and we will come back to why it is practically tough in the Indian context.
The concept of average is quite clear. If we buy 3 items at Rs.40, Rs.50 and Rs.60 each then the average price is Rs.50. In other words, the average price is nothing but the total value divided by the number of items.
If you are a trader in the stock market, you must be familiar with the term haircut. What is haircut in the stock market and what is haircut value. Let us first look at what a haircut in the share market means.