What is Leverage in stock market | Leverage Trading Explained for Beginners | Share market Leverage

 Leverage -  leverage is extra fund that the broker give you for your use for some certain time period and after time they will take to you. and they give you on some pre described rules. these rules are very simple in stock market.

The leverage could be like 1:5 or like  1:10 in simple words 1part of share will pay by you and remaining 5 will be in leverage( given by broker).

Profit and loss in leverage - profit and loss will be considered with leverage mean profit and loss will be added and deducted by all the investment like margin + Leverage = share price +profit/loss.

 Leverage only given to some special tradings -at the major time

• Intraday 
• Forex trading.

In Intraday - the broker will give you leverage for doing trade and the range of leverage is based on the company and Platform like Zerodha, Groww and many more has different-different type of polices these policy decided that how much leverage is suitable for particular stock. also the decide 1:4 or 1:5. 

Forex trading - The broker also give leverage on your trading margin is decided as well as intraday trading like 1:5 or 1:10.

But the thing is that if we going to loss then loss is also according to leverage and also profit. 

In Intraday trading you need to careful about leverage like we all know market will go off after 3:30PM then if you Exit or you put it rest then broker will deduct some special charges of it after 3:15PM

and if you Exit your position before 3:00 then you will scape from charges of leverage by broker.