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What is the difference between Delivery Versus Payment (DVP) and Margin Trading?

April 26, 2017DELIVERY dvp margin payment trading versus

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What is the difference between Delivery Versus Payment (DVP) and Margin Trading?

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Delivery Versus Payment refers to where stocks are purchased and marked for delivery with the total value of the trade deducted from the Customer’s account thus reducing the corresponding cash balance in his/her account. In this manner he/she can only purchase and sell stocks that are less than or equal to the amount of cash deposited by him. Margin trading is a type of account used to provide clients with additional funds as a multiple of their cash deposited. If a client places the basic account opening requirement of Rs. 25,000, he/she is provided a trading limit that is five times the amount i.e. Rs. 1,25,000. The basic amount is calculated as 20% of the trading limit. *AKD Trade is no longer providing margin facility.