How Much Margins Leverage Does Nuvama Provide?

Last Updated: Jul 24, 2024 Value Broking 1 Mins 2.8K

A margin is the combined total amount invested by a single person, with collateral incorporated. This practice creates a trade leverage. This means that margin is extensively applied to achieve powerful leverage for profit or increase losses.

So, here is how you can determine how much margin leverage Nuvama offers.

You can keep an equity cash delivery position using the margin only. It could be either of the two, stocks or cash. It offers benefits like:

Up to 4.4x leverage
Longer holding time
Limits are fungible in all segments

For example, Nuvama will fund part of the shares you buy. So, you are only required to pay a portion of the overall share value. You may buy Rs.1,00,000 worth of Infosys shares and then pay 25%, i.e., Rs.25000. The rest will be given by Nuvama at pay-in, meaning they will pay that amount on your behalf. In addition, this 25% may also consist of stock as collateral.

One must remember that the percentage of the margin will vary from time to time.