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Leverage allows you to trade larger Futures positions using a smaller amount of capital. However, it can increase both potential profits and losses.
How Does Leverage Work in Futures Trading?
| Details | What You Should Know |
|---|---|
| Leverage Example | With 10x leverage, you can control a ₹1,000 position using just ₹100 of capital. |
| Profits and Losses | Leverage increases your market exposure, which can amplify both potential profits and losses. |
| Liquidation Risk | Higher leverage increases the risk of liquidation if the market moves against your position. |
Important: Higher leverage increases your exposure to market fluctuations and the risk of liquidation. Choose your leverage carefully based on your risk tolerance.