Orders & trading
What is Leverage?
Hinglish mein padhein: Leverage kya hota hai?
Leverage lets you control a position larger than your own money. It multiplies both gains and losses.
With 5× leverage, a 2% move in the stock is a 10% move on your capital — up or down.
Most retail traders who use high leverage without strict stop-losses lose money over time.
Related terms
- MarginMargin is the money you must keep with your broker to take a position, especially in intraday and F&O trades where you control more than you pay.
- FuturesA futures contract is an agreement to buy or sell an asset at a set price on a future date. Both sides are obliged to settle.
- Position sizingPosition sizing decides how many shares to buy so that, if your stop-loss hits, you lose only a planned slice of your capital.