Are all stocks eligible for margin trading?
No, not all stocks are eligible for margin trading. The stock broker enables select shares for trading in the margin segment. These stocks currently account for almost the entire trading volume on the exchanges. Only those stocks, which meet the criteria on liquidity and volume, are considered for margin trading. Technically, the stocks having low impact cost are considered for margin trading. However the stock selection in the margin is at the sole discretion of the stock broker.
Related Questions
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