How Much Margins Leverage Does 5Paisa Provide?

Leverage, also known as margin, is the sum of money that brokers lend you. The margin percentage is determined by the current market value of your portfolio as an assurance that you can profit from your trades.

The maximum amount that brokers will let you borrow is known as the margin limit. A proportion of the entire value of the securities in your account is the margin limit. For example, if the assets in your account are worth ₹1 lakh and your broker permits a 50% margin limit, he will lend you ₹50,000 to purchase the stocks. However, based on how he evaluates the risk associated with lending, your broker might provide a greater or smaller margin percentage.

The whole cost of securities is subtracted from the overall market value to determine margin. 

The yield on cost is then calculated by applying the margin percentage to the outcome.