How this calculator works
When you trade on margin, you don't pay the full trade value in cash — you put up a fraction of it (the margin) and your broker funds the rest. This calculator applies the straightforward relationship: Margin required = Trade value ÷ Leverage, and Borrowed amount = Trade value − Margin required.
For example, if you want to take a ₹1,00,000 position at 5x leverage, you need to put up ₹20,000 of your own capital, and your broker effectively funds the remaining ₹80,000.
The important thing to understand is that your profit or loss is calculated on the full trade value, not just the margin you put in. That's what makes leverage a double-edged tool — it magnifies your returns on the way up, and your losses on the way down, in exact proportion to the leverage you use.
Leverage risk — read this before you trade on margin
Margin trading is not a way to reduce risk or "get more for less" — it is a way to increase both your exposure and your risk for the same amount of capital. A 5x leveraged position moves five times as fast, in rupee terms, as an equivalent unleveraged position of the same capital. A price move that would be a minor dent in an unleveraged position can wipe out a large share of your margin, or more, in a leveraged one.
In fast-moving or illiquid markets, losses can exceed your original margin amount, and brokers can issue a margin call requiring you to add funds immediately or have your position force-liquidated — sometimes at an unfavourable price. Only use margin trading with capital you can afford to lose, and understand your broker's specific margin call and liquidation policy before you place a leveraged trade.
Capital gains and F&O income have their own tax treatment and reporting requirements. Shunya's CA team can help you file correctly.
Talk to a CA →What is margin trading?
Margin trading lets you take a position larger than the cash you put up, by borrowing the rest from your broker. You pay a fraction of the trade value — the margin — and the broker funds the remainder. This lets you control a bigger position with less capital, but it also means your gains and losses are calculated on the full trade value, not just your margin.
Is margin trading risky?
Yes — leverage magnifies both gains and losses. Because your profit or loss is based on the full trade value, not just the margin you put down, a small adverse price move can wipe out a large share of your margin, and in volatile markets you can lose more than your original margin amount. Never treat margin trading as a way to reduce risk; it increases it.
Does every broker offer the same leverage?
No — leverage limits vary by broker, by stock, and by SEBI/exchange rules for the specific trading segment. A broker may offer higher leverage on liquid, large-cap stocks and little or no leverage on illiquid or high-risk stocks. Always check your broker's specific margin policy for the stock you're trading.
Is this the same as F&O margin?
No — this is a simplified equity-margin-trading illustration for cash market intraday or margin trading facility (MTF) positions. Futures & Options margin requirements (SPAN margin plus exposure margin) are calculated very differently, based on volatility and contract-specific factors, and aren't modeled by this calculator.
This tool is for quick estimation only and is not a substitute for professional financial or tax advice. Margin trading involves real risk of loss, including losses exceeding your margin. For your specific situation, consult your broker and a practicing CA.
Get your trading income compliance sorted
Shunya's CA team handles capital gains reporting, F&O income tax filing, and full ITR compliance — fully online.
Get Started →