Margin is the amount of money or collateral that a trader needs to keep with a stockbroker to trade in the stock market. It acts as a security deposit to cover potential losses.

Leverage allows traders to buy stocks or trade in derivatives with less money than the full value of the trade. This means traders can control larger positions with a smaller capital.
 

For Example:

• If a stock is trading at ₹100 and you buy it for delivery, you need the full ₹100, meaning Leverage is 1X (no borrowing).
   
• If you trade intraday, the broker may allow you to buy the same stock by paying only ₹20. Here, the Leverage is 5X, meaning you are trading with five times your available capital.
   

Leverage can increase both profits and risks, so it should be used carefully.