Margin requirement
A margin requirement is the minimum collateral for a position as a percent of its value: 10% is the same as 10x leverage. It rises for larger positions and volatile symbols, so the advertised leverage is a maximum. Requirements by symbol on Mochatrade; what is listed.
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In the help centreSee how leverage and margin work on MochatradeRelated terms
- Position sizingPosition sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry…
- Buying powerBuying power is the position value your free margin can open at the allowed leverage: ₹20,000 at 10x is ₹2,00,000. It…
- Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
- Leverage in tradingLeverage is controlling a position bigger than the money you put up. At 5x, ₹10,000 of margin controls ₹50,000, so a…
- Auto-deleveraging (ADL)Auto-deleveraging is the last step when a liquidated position's loss exceeds its margin and the insurance pool: the…
- Margin tiersMargin tiers raise the maintenance margin as a position grows, so maximum leverage falls as size rises and the two…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.