What is Margin Money?
5paisa Research Team
Last Updated: 02 Apr, 2025 10:31 AM IST

Content
- What is Margin Money in Trading?
- Who is Eligible to Get Margin Money?
- What Are The Types of Margin?
- The EndNote
Margin money is a portion of the amount we give to the exchange as an earnest deposit or cautionary payment to demonstrate our commitment to the deal and to keeping our promises. Additionally, because defaults are less likely to affect how the stock exchange operates, it makes the exchange mechanism safer. Traders and other market participants profit from the process as well. This article describes the definition and meaning of margin money in trading.

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