Leverageudhaar lekar bada sauda

Leverage means taking a position worth more than the money you actually put down. Brokers provide it for intraday equity, and it is built into futures and options through margin. If you have ₹1,00,000 and take a ₹5,00,000 intraday position in SBI, you are using five times leverage. A 1% rise earns ₹5,000, a 5% gain on your capital; a 1% fall loses the same. A 4% fall against you wipes out ₹20,000, a fifth of your account, in one trade. Leverage does not change the odds of the trade; it changes the size of the outcome and how quickly a losing streak ends your trading. SEBI has tightened intraday leverage rules over the years, and futures margins are set by the exchange and change with volatility. Beginners should trade with little or no leverage until their process has a positive expectancy on record.