There are thousands of brokers in India, so it is important to know the best high leverage brokers. Professional investors and traders make use of leverage or margin to increase returns. Brokers with high leverage allow investors and traders to profit more than their initial deposit would allow them. Let’s take a look at what leverage is.
Leverage Explained
Is term leverage and margin are used interchangeably in the financial market. Leverage gives investors and traders the ability to buy more stocks with their initial deposit. Margin or leverage is the money an investor or trader must deposit with an exchange or broker to cover the financial risk.
In a simple word, leverage is using borrowed capital or debt for investment with the expectation to make greater profits than the interest payable. But you will need a margin account for a broker to loan you money to buy more securities than your capital can. When you buy assets on margin, you are effectively using the securities or funds in your account to secure a loan.
Advantages of Brokers With High Leverage
When you choose a broker with high leverage it gives you certain advantages which include:
Adjustment of leverage: choosing a broker with high leverage exposes you to high risk. When you want to reduce your risk you can choose to adjust your margin rate manually. Or call your broker to help you change or adjust your leverage.
Larger position size: brokers with high leverage mean you have the opportunity to increase your positions. In other words, you can buy more than what your deposit can allow you. As a result, you have more market exposure and can increase your profits.
Diversification of portfolios: deposit capital that is not fully utilized on a single trade can be used on other investments to diversify a portfolio. Since you have access to larger positions with brokers with high leverage.
Disadvantages of Brokers With High Leverage
Higher risk: the greater the profit, the higher the risk involved. Those who trade or invest with leverage should know that they can lose their capital as well as their deposited amount when they fail to have negative balance protection.
Inappropriate for beginners: beginners shouldn’t start investing with leverage. The reason is that it will expose them to higher risk when trading and also they need to gain more experience.
High Leverage Brokers In India
Now that we have discussed the advantages and disadvantages of high leverage brokers. Let’s take a look at brokers that offer high leverage in India.
Zerodha
It was founded in 2010 with its headquarters in Bangalore and has been able to make a strong impact in the industry. Below is the leverage they offered on the following service.
Intraday Equity up to 20 times
Commodity up to 2.5 times
Equity delivery up to 1 times
Equity Options up to 2.5 times
Equity Futures up to 2.5 times
Currency Options up to 2.5 times
Currency future up to 20 times
Wisdom Capital
Is a brokerage company in India that is growing fast and offers various services and products with modern technology. It was founded in 2013 with its headquarters in Bengaluru. Below is the leverage they offer on the following depending on the brokerage plan
Intraday Equity up to 40 times
Commodity up to 40 times
Equity delivery up to 40 times
Equity Options up to 40 times
Equity Futures up to 20 times
Currency Options up to 15 times
Currency future up to 15 times
Upstox or RKSV
It is a technology-driven brokerage firm in India that provides a complete online trading and investment platform.
Intraday Equity up to 25 times
Commodity up to 3 times
Equity delivery Not available
Equity Options up to 4 times for selling and for buying 1 times
Equity Futures up to 4 times
Currency Options up to 4 times
Currency future up to 4 times
SAS online
Is also one of the brokerage companies in India that offer high leverage.
Intraday Equity up to 20 times
Commodity up to 5 times
Equity delivery up to 20 times
Equity Options up to 20 times
Equity Futures up to 2 times
Currency Options up to 2 times
Currency future up to 2 times
5Paisa
Within a very short period, 5Paisa Capital Limited has created a large customer base.
Intraday Equity up to 15 times
Commodity not available
Equity Delivery up to 4 times
Equity Options up to 2 times
Equity Futures up to 2 times
Currency Options up to 2 times
Currency futures up to 2 times
Lastly
Listed above are some of the high leverage brokers in India. But there are foreign stock brokers that also offer high leverage for traders and investors.
Put down in the comments below other brokers you know that offer high leverage.
