Source: https://mochatrade.com/learn/glossary/leverage-in-trading

# Leverage in trading
URL: https://mochatrade.com/learn/glossary/leverage-in-trading
Last modified: 2026-10-17

Leverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a 2% move is 10% of your money and a 20% move against you is all of it. [One 5x trade, start to finish](https://mochatrade.com/learn/start-here/nvidia-trade-walkthrough); [how leverage works on Mochatrade](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade); and why [leverage is the fourth number, not the first](https://mochatrade.com/learn).

## Related terms

- Margin trading: https://mochatrade.com/learn/glossary/margin-trading
- Position sizing: https://mochatrade.com/learn/glossary/position-sizing
- Buying power: https://mochatrade.com/learn/glossary/buying-power
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
- Mark price: https://mochatrade.com/learn/glossary/mark-price
- Isolated margin: https://mochatrade.com/learn/glossary/isolated-margin

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.