An IPO allows you to buy shares of a private company going public for the first time. The process of how does an IPO work is straightforward. The IPO process in India allots the subscription of shares randomly to interested investors. The company issues a pre-defined quantity of shares. The influx of capital into the company can help it increase its revenue: thus, growing in valuation. This, in turn, benefits the investors by providing capital gains.

There are many advantages of IPO for an investor:

One of the main benefits of IPO investments is their ability to provide a significantly high rate of returns.
It helps you buy the shares of a company at a low price. This is extremely helpful when investing in companies that have a promising growth prospect.
IPOs of good companies are great to meet long term goals.

The three most important IPO basics to keep in mind are:

Invest in companies that use the influx of capital to expand or refine their business. This shows that the capital will be used to generate more revenue.
Run a background check on all the promoters of the company. Only invest in companies that are led by a distinguished management team.
Invest in companies that have promising growth potential. You should invest in IPOs of companies that provide value to the customer and have the potential to bring something new to the market.

Using the F and O margin calculator, also known as the span margin calculator, is easy. You can use any online F&O calculator and follow these steps:

Use the drop-down menu Select the Exchange wherein the underlying F&O asset is traded.
Select the Product type (from Futures and Options) from the next tab in the drop-down menu.
Enter the company name/ Ticker Code/Symbol in the third tab.
Enter the quantity and choose whether you want to buy or sell the contract.
Click on Calculate. You can also reset the calculator if you wish to change the quantity or calculate the value of other F&O contracts.

Margin funding, also known as Margin Trading facility, is a service provided by brokerage firms through which traders can get the necessary funds to buy more units of stocks, currencies, commodities, etc., from their brokers. Essentially, the margin funding facility allows you to buy more units of securities than you can afford by borrowing funds at a nominal interest rate from your broker. You can get the funds by using your shares as collateral, and you must repay or square off the amounts funded by a specific period.