Moveintrade Learn · Lesson 3 of 5Explainer5 min

Margin and liquidation, in rupees

What ₹10,000 controls at 5×, where liquidation sits, and what you can lose.

Margin is the money you put down. Leverage multiplies it into the size of your position.

Margin₹10,000
× Leverage5×
= Position₹50,000

Every 1% the price moves changes a ₹50,000 position by ₹500, which is 5% of your ₹10,000 margin. That is what 5× means.

Where liquidation sits

Your position must keep at least half of its margin (the maintenance level). When losses eat into that half, the position is closed for you. That is liquidation. At open, it sits 1 ÷ (2 × leverage) away:

LeverageLiquidation distance at open₹10,000 margin controls
2×25%₹20,000
5×10%₹50,000
10×5%₹1,00,000
20×2.5%₹2,00,000

The ticket shows the liquidation price in rupees before you confirm, and warns you when it's within 3% of the price.

What you can lose

Margin is isolated: each position has its own. If a position is liquidated, you lose most of that position's margin, not your whole balance. If the price gaps straight past your liquidation price (say, overnight news), the shortfall is covered by an insurance fund, not by you.

Alerts tell you when 80% and then 90% of the margin buffer is used, so liquidation shouldn't be a surprise.

Try it in the demoTesla, long, 5×, ₹10,000 margin. Watch the liquidation price.
Open the demo ticket →

Demo money only. Moveintrade is not live and does not open trading accounts yet. Leverage magnifies losses as much as gains: most retail derivatives traders lose money.