Trad500

Trading Guides & Market Education

Professional-grade learning resources covering trading fundamentals, derivatives, market psychology, risk management, and advanced institutional strategies.

Understanding Leverage

Learn how leverage amplifies both profits and losses in trading.

1
What is Leverage?

Leverage allows you to control a larger position with a smaller amount of capital. At Trad500, we offer up to 500× leverage for qualified traders.

2
How It Works

  • With ₹10,000 and 100× leverage, you can control ₹10,00,000 worth of assets
  • Profits and losses are calculated on the full position size
  • Margin requirements vary by instrument

3
Example Calculation

Example
amount: ₹10,000
leverage: 100×
position: ₹10,00,000
scenario1: Price moves 1% in favor → Profit = ₹10,000 (100% return)
scenario2: Price moves 1% against → Loss = ₹10,000 (100% loss)

Key Takeaways

Leverage multiplies your buying power
Higher leverage = Higher risk
Use stop-losses to limit potential losses
Start with lower leverage as a beginner