Margin and leverage calculator
See how much margin a position needs, how much leverage you are using, and what a move against you would cost.
What margin means
Margin is the money your broker blocks to let you hold a position larger than the cash you put up. In Indian F&O, exchanges set the minimum margin using SPAN (the worst expected one-day loss) plus an exposure margin, and brokers collect it upfront. For intraday equity, SEBI’s peak margin rules mean leverage is limited, typically up to 5 times on eligible stocks.
The formulas
Margin = Position value × Margin %
Leverage = 100 ÷ Margin %
Worked example
One Nifty futures lot of 65 units at 25,000 is a position worth ₹16,25,000. If the margin requirement is 12%, about ₹1,95,000 is blocked and leverage is about 8.3×. A 2% move against you is a loss of ₹32,500, which is 16.7% of the margin. A 12% move would wipe out the entire margin.
Leverage cuts both ways
| Margin % | Leverage | Move that wipes out the margin |
|---|---|---|
| 20% | 5× | 20% |
| 12% | 8.3× | 12% |
| 8% | 12.5× | 8% |
SEBI’s studies of F&O traders have found that a large majority of individual traders lose money in derivatives. Leverage is the main reason losses can exceed what people expect.
Margin calls and mark-to-market
F&O positions are settled daily. If the price moves against you, the loss is debited and your broker may ask for more margin or square off the position. Margins also rise when markets are volatile, so a position that fitted yesterday may need more money today.
What this calculator does not do
It does not calculate exchange SPAN margins. Use your broker’s margin calculator for the exact figure, then enter that percentage here to see leverage and loss scenarios.
Frequently asked questions
How is margin calculated for futures?
Exchanges calculate SPAN margin from the expected worst one-day loss and add an exposure margin. Your broker shows the total. This calculator turns that percentage into a rupee amount and leverage.
What is leverage in trading?
Leverage is the position value divided by the margin. With a 12% margin, leverage is about 8.3 times, so a 1% price move changes your margin by about 8.3%.
Can I lose more than my margin?
Yes. If prices gap sharply, losses can exceed the margin blocked, and you remain liable for the difference.
