You can buy shares even if there is no balance in Demat account, know how?

Buy Shares without Demat Balance: A demat account is required to invest in the stock market, mutual funds or government bonds. You have to open a demat account and deposit the balance in it, after which you can buy shares. But do you know that even if there is no balance in your demat account, you can buy shares. Learn more about how this feature is available and how you can take advantage of it…
leveraged trading option

J-That broker provides the option of leveraged trading in the demat account opened there. Under which you are allowed to invest 10 times the amount deposited in your demat account. However, this also increases the possibility of risk. If a good stock is bought, you can make huge profits, but if the stock crashes, you can suffer huge losses.

What is leveraged trading?

Investors can do leverage i.e. margin trading through Demat account. In which the investor gets the facility to borrow money from his broker. You can use these funds to buy stocks or securities. The advantage of which will be that you will be able to earn manifold profits in the market by investing more than the amount deposited in your account. However, the risk of loss in a market crash will also increase. The use of leveraged trading is suitable for options and futures trading.

How is the limit determined

For leveraged trading, the broker has set limits based on the capacity of the demat account. In which most brokers lend 10 times the amount deposited in your account. That means Rs. With a deposit of Rs 10 thousand you get the power to invest up to Rs 1 lakh. Zerodha brokerage house offers 5x leverage and Kotak Securities offers 20x leverage.

Leverage is also of no interest.

Leverage is borrowing taken to invest in the stock market. But no interest is charged on this. An investor can take advantage of leverage without paying any additional fees. The brokerage charges a fee on each transaction. From which he gets his profit. Most of the brokerage houses including Zerodha and Angel Broking offer Rs. Charges Rs. 20 fee and GST fee.