Margin & leverage

How much cash to hold a bigger position?

Intraday and F&O let you control a large position with a fraction of its value as margin. This tool shows the upfront margin you’d need and the effective leverage — so the power, and the risk, are both in plain sight.

Margin required Effective leverage

Educational estimate. Actual margins are set by your broker and the exchange (SPAN + exposure) and rise with volatility.

Margin & Leverage Position margin
#
Your broker shows this per scrip — e.g. 20% means 5× leverage
Margin required
₹10,000
Upfront cash to hold a ₹50,000 position
Position value
₹50,000
Price × quantity
Effective leverage
5.0×
You control 5.0× your margin
What this means
₹10,000 controls ₹50,000
Leverage magnifies both gains and losses. Actual margins are set by your broker and the exchange (SPAN + exposure) and change with volatility.
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Use it with care

Leverage cuts both ways

Margin lets a small amount of capital control a much larger position. That magnifies profit when you’re right — and loss when you’re wrong, by exactly the same multiple. Understanding the leverage before you enter is the difference between a calculated risk and an accident.

More buying power

5× leverage means ₹20,000 can control a ₹1,00,000 position — useful, but every move now counts five times as much.

Amplified losses

A small adverse move can wipe out a large share of your margin. Position sizing matters even more when leverage is involved.

Margins move

Exchanges raise margin requirements in volatile conditions, so the leverage available today may not be there tomorrow.

Leverage needs disciplined sizing

Before using margin, set your risk with the position size calculator so one trade can’t do outsized damage.

Open position size calculator