Intraday trading is all about margins. For example, if you can put in a margin of Rs.50,000 and get exposure to the tune of Rs.2.50 lakhs then your leverage is 5 times or you are operating on a margin of 20%. This can vary from client to client and from broker to broker. You can take a call based on the comfort level and don’t just go for high leverage. As much as it looks attractive, it is also very dangerous and risky.
The margins on intraday trading are much lower than in normal trading. Also, within intraday trading, if you place cover orders then your margin can be still lower. There are cover orders where only the stop loss is defined at the time of the trade is executed. When your margin is lower you effectively get more leverage. A cover order is an order on the exchange wherein the stop loss is defined and placed at the time of placing the order itself. There is also a bracket order wherein you can define the stop loss and the profit target on an either/or basis. The moment one of them is executed (stop loss or profit target), the other leg of the order is automatically canceled.