Position sizing

Position sizing is deciding how much to trade: the rupees you are willing to lose divided by the distance from entry to stop. Size is the output and leverage is the fourth number; NSE lot sizes used to do this for you. One trade sized on a card before the click; margin per symbol on Mochatrade.

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In the help centreSee how leverage and margin work on Mochatrade
  • 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…
  • Liquidation / forced square-offLiquidation, or forced square-off, is the venue closing a leveraged position because the margin can no longer cover…
  • Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
  • 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…
  • Liquidation priceThe liquidation price is where the venue closes your leveraged position, computed from entry, leverage and margin…
  • Mark priceThe mark price is the price a venue judges your position by, for unrealised profit and liquidation, built from the…

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

Where it comes up