Source: https://mochatrade.com/learn/glossary/leverage-ratio

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

The leverage ratio is position value divided by margin: ₹50,000 on ₹10,000 is 5x. One over the ratio is how far the price can move against you before the margin is gone: 20% at 5x, 5% at 20x, 2% at 50x. [The Module 0 quiz turns a 2% index move into 20% of margin](https://mochatrade.com/learn/start-here/quiz); [leverage on Mochatrade](https://mochatrade.com/support/how-leverage-and-margin-work-on-mochatrade).

## Related terms

- Initial margin vs maintenance margin: https://mochatrade.com/learn/glossary/initial-margin-vs-maintenance-margin
- Leverage in trading: https://mochatrade.com/learn/glossary/leverage-in-trading
- Buying power: https://mochatrade.com/learn/glossary/buying-power
- Liquidation / forced square-off: https://mochatrade.com/learn/glossary/liquidation-forced-square-off
- Lot size and tick size: https://mochatrade.com/learn/glossary/lot-size-and-tick-size
- Liquidation price: https://mochatrade.com/learn/glossary/liquidation-price

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