Know your exact required capital before placing intraday or positional orders. Calculate effective leverage, capital savings, and risk boundaries across NSE & BSE stocks.
| Order Type | Leverage Multiplier | Margin % Required | Capital Needed | Risk Level |
|---|
Trading Margin is the initial deposit of capital an investor or trader must commit to enter a financial contract. By providing margin, you borrow purchasing power from your stockbroker to control a significantly larger position size than your account balance would otherwise allow.
To protect retail traders and systemic market stability from excessive leverage blowouts, the Securities and Exchange Board of India (SEBI) introduced the mandatory Peak Margin Framework. Under these rules, brokers are legally prohibited from offering arbitrary 20x or 50x intraday leverage. Margin requirements for all equity intraday trades are pegged strictly to the exchange-mandated VaR (Value at Risk) + ELM (Extreme Loss Margin), capping maximum intraday leverage to 5x (20% margin) for liquid equities.
While leverage magnifies returns on winning trades, it amplifies losses at the exact same exponential rate. Professional proprietary traders apply three critical rules when trading on margin:
Never enter a 5x leveraged trade without an automated Stop-Loss order in the system. A 4% adverse stock move on a 5x position causes a severe 20% drawdown on your deployed capital.
Limit your total monetary risk on any single trade to 1% to 2% of your overall trading bankroll, regardless of available broker leverage.
Brokers auto-close MIS intraday orders at 3:15-3:20 PM and levy a penalty of ₹50 + GST per order. Always square off positions manually before the cutoff.
Log all leveraged executions into TradeX Journal to monitor real-time Risk-to-Reward ratios and eliminate over-leveraging errors.
Track your trades, auto-calculate fees, manage risk with position sizing, and evaluate real P&L in the cloud with TradeX Pro.