India, Aug. 5 -- There's something undeniably tempting about the idea of doing more with less-especially in trading. Leverage gives you that edge, or at least it feels that way at first. With less capital, you can suddenly control positions many times its size. The payoff, if you get it right, can look spectacular. It's no wonder so many new traders dive in head-first.

But what seems like a shortcut to quick returns often ends up exposing them to more risk than they bargained for. Margin trading facility (MTF) and options are two of the most accessible forms of leverage today, and both are often misunderstood. They promise power, but without the right knowledge, they can just as easily turn on you.

Before jumping in, it's worth understa...