Estimate leverage used on a position. This dedicated page is built for fast, clean calculations and search visibility.
Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.
How to use this calculator
- Open the leverage calculator page.
- Enter the required values in the form fields.
- Click Calculate to see the result and breakdown.
- Use the related links to explore similar tools.
How leverage amplifies gains and losses
Leverage allows you to control a larger position with a smaller amount of capital (margin). At 5× leverage, ₹1 lakh controls ₹5 lakh of exposure. A 2% move in your favour generates a 10% return on your capital. But the same 2% move against you creates a 10% loss. Leverage amplifies both directions equally.
Margin trading in Indian equity markets is governed by SEBI. Intraday leverage (MIS) is typically 3–5× for large-cap stocks through most brokers. F&O provides implicit leverage through lot sizes — one Nifty futures contract controls ₹5+ lakh with margin of ₹80,000–₹1 lakh.
Liquidation risk: what happens when leverage goes wrong
- At 5× leverage, your position is liquidated if the stock moves 20% against you (wiping 100% of margin). With 10× leverage, only a 10% adverse move wipes capital.
- Margin calls happen before full liquidation — your broker calls for additional funds when margin falls below maintenance margin (typically 50% of initial margin).
- In crypto markets, forced liquidation can happen within minutes during high volatility. Leverage above 3× in crypto carries extreme liquidation risk.
Most professional traders use leverage well below their maximum allowed. Using 2–3× on high-conviction short-term trades with clear stop losses is defensible. Using maximum available leverage routinely is a path to account wipeout — one unexpected gap eliminates the position.