# Explain Leverage Pay off (during Loss) for MIS (Regualr Order) & Cover Order (MIS)

I was here: http://zerodha.com/varsity/chapter/leverage-payoff/

I understood Leverage, but i need to know how you calculate during a loss, this will help me how much capital i will loose if i hit a stop loss or when to exit calculating my risks.

Scenario #1: Intraday normal MIS Order for Equity / Cash

I have 15k capital, I buy Axis bank @ 450, since i use MIS (9x), i can buy 310 shares, now market comes down to 420 and if i exit, i am sure i make a loss, but how is this calculated ? and how much is left in my capital ?

Scenario #2: Cover order (MIS) for Equity / Cash

I have 15k capital, I buy Axis bank @ 450, using cover order, i can extend leverage and i can buy 520 shares instead of 310, now market comes down to 426 and i hit mandatory stop loss and exit automatically, what is the loss i have incurred and what is left of my capital, please explain ?

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Loss or profits are not calculated based on product type but on quantity and price involved.

Its just simple mathematics.