The Margin Calculator helps traders understand margin requirements, leverage, and potential profit/loss for leveraged positions. Margin trading allows you to control larger positions with less capital, but also amplifies both gains and losses—making it essential to calculate risks before trading.
How Does the Margin Calculator Work?
Margin is the collateral you deposit with your broker to open leveraged positions. The calculator shows how much margin you need, the leverage you get, and potential profit or loss based on price movements.
Margin Required = (Trade Value × Margin %) ÷ 100Where:
- • Trade Value = Number of Shares × Stock Price
- • Leverage = 100 ÷ Margin Percentage
- • Potential P&L = Trade Value × Price Change %
- Initial Margin: Minimum amount to open a position (typically 20-50%)
- Maintenance Margin: Minimum balance to keep position open
- SPAN Margin: For F&O, calculated using portfolio risk algorithm
- Exposure Margin: Additional margin on top of SPAN for F&O
Example: Margin Trading Calculation
Vikram wants to trade Reliance shares worth ₹1,00,000 using margin.
Trading Details:
• Trade Value: ₹1,00,000
• Margin Required: 20%
• Stock Price: ₹2,500
Calculations:
• Margin Needed: ₹1,00,000 × 20% = ₹20,000
• Leverage: 100 ÷ 20 = 5x
• Shares Can Trade: 1,00,000 ÷ 2,500 = 40 shares
If stock rises 5%:
• Profit: ₹1,00,000 × 5% = ₹5,000
• Return on Margin: ₹5,000 ÷ ₹20,000 = 25%
Vikram earns 25% on his margin for a 5% stock move—but losses are equally amplified!
Margin Requirements in Different Segments
Margin varies by trading segment and volatility:
| Segment | Typical Margin | Leverage |
|---|---|---|
| Equity Delivery | 100% | 1x (No leverage) |
| Equity Intraday | 20-25% | 4-5x |
| Equity Futures | 15-20% | 5-7x |
| Bank Nifty Options | 10-15% | 7-10x |
Frequently Asked Questions
⚠️ Disclaimer
Margin trading involves substantial risk of loss and is not suitable for all investors. Leverage amplifies both gains and losses. Never trade with money you cannot afford to lose. STOCKCALC.IN does not provide trading advice.