I was using Mirae Assets broker (Mstock) for leverage last year. They are providing 7-9% interest on margin funding to own stocks and upto 3-5x leverage. You can hold the stocks long term with leverage.
Another option is to use Futures for leverage. You have to roll over the future on monthly basis. That will incur rollover cost of 5-10%/(per year) (Depends on the scrips & volatility). You can get up-to 5x leverage on this.
Another option is to use Options (Synthetic future) and roll over the options on monthly basis. This is has some advantage over Futures as transactions cost is low for this. Also you can hedge the postions. Here roll over cost depends on the strategy you are opting for. Leverage also depends on the strategy that you are going for. You can even get 50x leverage on this. But 3x-5x is safe for adjustments & fire fighting if direction is aganist you. Disadvantage is that many stocks are ill-liquid. Best for Indexes & high volume stocks like HDFC, TCS, ITC…etc.
Subscribe To Our Free Newsletter |