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What is Adhoc Margin? Who Collects from Whom?

July 5, 2022
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Adhoc Margin is that margin that the stock exchange collects from participants with excessively large open positions or that is imposed on volatile stocks on an as-needed basis while considering the risk.

You already know that, We all buy stocks from stock exchanges but not directly everyone has their broker and they are registered with the stock exchange as a member.

Stock Exchange is the market where stocks changes hand or we can say that buyers and sellers transact with each other on a specific amount which is decided by both of them.

If you are a trader or investor you know how volatility keeps on running the market. We feel that traders are the ones who are responsible for the volatility and it is a good thing, without traders market becomes boring and nobody will pay attention to it. As different scrip has different volatility, therefore in the view of risk perspective in the market, stock exchanges keep this margin purposely. This margin also includes an unduly large outstanding position in the market.

Final Words on Adhoc Margin

Beng an investor you do not need to worry about this adhoc margin. Since you are an investor, even we are also in dilemma whether we should write this post or not. Knowledge never goes waste. You should know about this term.

We hope We gave you some insights about adhoc margin and delivered it in the best possible way.

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To your Investing Journey

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