Hi. I'm new to this share trading. Still skimming you could say. Can anybody please explain to me what is "exposure limit." If I have a capital of 5000, I'm being given an exposure limit of 25000 for 4-5 days. What does it mean? What exactly is this? Would be real nice if you could give a link or so or answer in full detail. Many thanks in advance.

"Exposure Limit" can mean different things with different brokers.

Who is your broker?

Usually, ""exposure limit" is the value of stocks that you can buy or short (for intra-day only).

You have a capital of Rs 5000, but your broker has given you an "exposure limit" of Rs 25000.

You can buy shares worth Rs 25000.

If the exposure limit is only for intra-day, you will have to square-off your position on the same day.

If the limit is for cash delivery, you can buy shares worth Rs 25000 and then make the payment any time before the settlement.

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