Margin Leverage Kite

Leverage indicator on Kite

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The leverage indicator on Kite shows the effective leverage of a planned trade, computed as the ratio of notional position value to margin used. It appears on the order ticket alongside the Margin required field.

How it’s displayed

On the order ticket, the leverage indicator is typically shown as:

  • “Leverage: 5x” (or similar).
  • A multiplier indicating how much of a position you can take per Rs of margin.

For a scrip with 15% margin requirement, leverage = 100/15 ≈ 6.7x.

What it tells you

Leverage indicator:

  • Per-scrip leverage for intraday MIS.
  • Compares with notional value.
  • Pre-trade for decision-making.

It does not show:

  • Your account’s effective leverage (which depends on free margin).
  • Hedge benefit for multi-leg strategies.
  • After-fee or after-charge leverage.

When leverage indicator is useful

  • Comparing scrips: Large-cap vs mid-cap intraday capital efficiency.
  • Risk assessment: Higher leverage = larger position per unit margin = more sensitivity to price moves.
  • Position sizing: Helps decide intraday quantity.

CNC vs MIS

For CNC (delivery), leverage = 1x (no leverage). For MIS, leverage = exchange-determined multiplier.

The indicator typically shows differently:

  • CNC: “Delivery (1x)” or no indicator.
  • MIS: “Leverage: 5x” or similar.

For F&O

F&O product types (NRML, MIS) have implicit leverage in the SPAN-driven margin. The Kite F&O order ticket shows SPAN + Exposure breakdown rather than a simple leverage number, because F&O leverage isn’t a single multiplier (it depends on hedge state, time to expiry, etc.).

Recent changes

Post-peak margin , the leverage available for equity MIS is constrained to exchange VAR + ELM levels:

  • ~5-8x for liquid large-caps.
  • Lower for mid / small-cap.

The Kite leverage indicator reflects the current exchange-determined value.

See also

External references

References

  1. Zerodha, Margin and leverage display on Kite, support.zerodha.com.
  2. NSE Clearing, VAR + ELM framework, nseclearing.com.

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