Question regarding Leverage

I was buying MIS leverage for 30 stocks and I found that the margin used is shown very less. I have always traded CNC earlier so, my question is: If I am buying 30 shares for Rs. 500 each, I use Rs. 15,000/- margin in CNC but in case of MIS it is only Rs. 1,137/-. How does this work?

See, the margin used for intraday leverage is for 30 stocks is that when you calculate it with the margin calculator. you can buy the amount of stocks shown in the quantity section of margin calculator. The quantity of stocks you can buy is dependent on the money you have in your trading account and the leverage offered for that particular stock by the broker. when you buy the said amount of stocks shown by margin calculator, the whole amount in your account is blocked for that particular trade. and when you profit, it is based on the leverage amount and when the trade goes against your desired direction, then the amount shown in your account can vanish in seconds. so, be careful with leverage, only risk the capital you afford to lose and plan your trade first with proper target and stop loss first and then take the trade.
i hope this helps and
good luck with your trade.

1 Like


There are no margin in CNC , you are taking delivery so you need full amount to buy.

Margins applicable only in MIS.

Check how much margin required on Z margin calculator.

And before you do all this , please understand what margin is and how it works.

Plenty of tutorial and guides available on NSE and Z varsity.

Thanks for the info.