Margin trading provides numerous advantages to an investor and some key benefits associated with margin trading are as follows.
Increased Buying Power – Investing with a margin trading facility allows an investor to purchase a greater number of securities than been able to purchase with own funds, thereby giving a larger exposure to the market and the possibility of greater returns whilst diversifying the rick. Further the additional funds available provide the investor an opportunity to look for bargains available in the stock market and to benefit from it.
Flexibility on utilization and repayment – The investor could utilize only the amount required for the investment rather than drawing a fixed amount and there are no minimum monthly payments or regular repayment criteria on a margin trading facilities. The utilization and the repayment could take place as per the investor’s discretion which provides a greater flexibility over many other financial products.