What It Means
Margin is borrowed money from your broker, used to increase your buying power beyond what your own cash could purchase — it lets you take a larger position with less capital, at the cost of interest and added risk.
Example
With ₹50,000 in your account and a broker offering 4x margin, you could take a position worth up to ₹2,00,000. A 5% move against you now costs ₹10,000 — 20% of your actual capital, not 5%.
Warning
Margin amplifies losses exactly as much as it amplifies gains. A move that would be a minor dent on an unleveraged position can wipe out a large share of your capital on a margined one.