How to calculate leverage for futures?

[mutualguru]

I am trading in future stocks and i am having difficulty selecting stocks because of leverage. I dont know whether i can explain it properly but i will try my best.

I have an account of 60000 and want to select a fututre stock. example if i select MRF stock( ~35000rs) a slight change in percentage whether gain or loss (eg0.05) have a big impact on my account (very high gain or loss). This can cause a big loss or a big gain. whereelse if i select UCO bank (~30rs) the impact (especially loss) is less. as a risk averse person i would ordinary avoid MRF futures when considering my total investment (60K).


Is there any simple calculation using which we can calculate a futures stocks "Impact", say a change in 1% causes this much gain/loss

eg MRF 1 lot (1%change)= +/-10000rs
UCO Bank 1 lot (1%change)=+/- 200 rs

 

[nikhil singh]

I am trading in future stocks and i am having difficulty selecting stocks because of leverage. I dont know whether i can explain it properly but i will try my best.

I have an account of 60000 and want to select a fututre stock. example if i select MRF stock( ~35000rs) a slight change in percentage whether gain or loss (eg0.05) have a big impact on my account (very high gain or loss). This can cause a big loss or a big gain. whereelse if i select UCO bank (~30rs) the impact (especially loss) is less. as a risk averse person i would ordinary avoid MRF futures when considering my total investment (60K).


Is there any simple calculation using which we can calculate a futures stocks "Impact", say a change in 1% causes this much gain/loss

eg MRF 1 lot (1%change)= +/-10000rs
UCO Bank 1 lot (1%change)=+/- 200 rs

This is because the change percentage is directly dependent on the price that is charged. like for example 10% of 100000 is 10000 and 10% if 100 is 10. its just the price. because MRF has bigger value than UCO bank its change impacts you more.
In your case MRF have a lot size of 125 and CMP is (suppose) 34000 so your
value will be 4250000 thus 1% fall of 4250000 will be 42500(loss) whereas in case of UCO bank = 4000(lot size) * 30(CMP) = 120000, thus 1% fall will be 1200(loss).
I hope you understood my point