https://v2.webnotes.in/tags/capital-efficiency/Recent content in Capital Efficiency on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/leverage-against-available-funds/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/leverage-against-available-funds/<p><strong>Leverage against available funds</strong> is the effective ratio of total notional position value to your available margin. It is distinct from per-scrip leverage and is a better measure of true portfolio risk.</p> <h2 id="per-scrip-vs-effective-leverage">Per-scrip vs effective leverage</h2> <table> <thead> <tr> <th>Concept</th> <th>Description</th> </tr> </thead> <tbody> <tr> <td>Per-scrip leverage</td> <td>Notional / margin for one scrip (e.g., 5x for liquid large-cap)</td> </tr> <tr> <td>Effective leverage</td> <td>Total portfolio notional / total margin available</td> </tr> </tbody> </table> <p>If you trade one Rs 1 lakh intraday position with Rs 20K margin used and Rs 80K free:</p>