Method, example and interpretation · Revised 16 October 2026
Separate trading costs, leverage and investment performance
A stock’s price change is only one part of your outcome. These tools isolate illustrative transaction costs, leverage exposure, the weighted cost of multiple purchases and return on investment. They use manual inputs and do not provide live prices, broker quotations or trading recommendations.
Brokerage is an estimate under stated assumptions
The cost illustration combines brokerage, transaction charges, GST, SEBI fees, stamp duty and STT. Actual costs depend on delivery versus intraday trades, exchange, instrument, broker caps and the current charge schedule. Use the editable brokerage assumption and compare the full breakdown with a contract note before relying on the net profit figure.
Leverage magnifies the same price movement
Exposure equals your margin multiplied by leverage. The simplified profit or loss is exposure multiplied by the price change. The model excludes borrowing charges, maintenance-margin changes and forced liquidation, so it cannot tell you the maximum capital required to keep a real leveraged position open.
Average price and return measures
Weighted average cost is total purchase cost divided by total shares; adding a smaller trade changes the average less than adding a larger one. ROI compares gain with invested money. Annualised ROI assumes a single initial outflow and final value. Use dated XIRR for additional purchases or withdrawals rather than applying lump-sum CAGR to a changing portfolio.
Worked example
₹1,00,000 margin at 5× exposure and a 2% price movement.
Exposure ₹5,00,000; illustrated price gain ₹10,000 before charges, or 10% of the starting margin.
A 2% movement in the opposite direction produces the same-sized loss before financing and transaction costs.
Questions about this tool
Does the margin tool predict liquidation?
No. Broker margin requirements and liquidation rules are outside this simplified exposure model.