Zerodha – Margin Policies
Traders,
Margin Policy can change at any point of time based on market volatility.
The following post will give you our standard margin policies while trading equity intraday & delivery, f&o, currency and commodity. You can trade equity either intraday or delivery on NSE, BSE and MCX-SX. If you are not enabled on the latter 2 exchanges, print the segment addition form and courier back to us if you wish to.
1. Stocks or Equity or Shares Trading
Intraday equity:
When you take a trade in equity and square the position off before the end of day, it is called as intraday equity trading. Since you don’t carry the position overnight, we provide you a margin or leverage of between 3 to 20 times on around 150 liquid stocks to trade for intraday. You can trade intraday at Zerodha with leverage by using these 2 product types while taking a trade.
MIS (Margin Intraday Square off)
When you use this product type, you commit on keeping the trade intraday and hence we give you a leverage between 3 to 14 times based on the risk and volatility of the stock. Our margin calculator tool has a list of all stocks and the MIS leverage you get.
CO (Cover Orders) & BO (Bracket Orders)
Cover orders and Bracket orders are unique orders at Zerodha where you can trade intraday with a definite and compulsory stop loss. Since the risk with such a position is low, the margin required is less and hence the leverage higher. When you trade intraday using cover orders, the leverage you get vary from 6 to 20 times(twice as much as MIS). . Read this to know more on Cover orders and this for Bracket orders.
Our Margin calculator tool has a list of all stocks with MIS and CO/BO margin/leverage.
Equity Margin Calculator
Imporant
Even though we square off all intraday positions automatically around 3.20 pm, the onus of squaring off all intraday MIS/BO/CO positions lies with you. If any intraday position or a MIS/BO/CO trade is not squared off on the same day for any reason, it shall get converted as a Cash and Carry (“CNC”) or NRML position and carried forward to the next trading day. Our RMS desk shall square off any such position the next trading day without the requirement of a margin call, if the necessary cash is not available in the Client’s account.
Delivery Equity:
When you buy stock and hold it overnight, it is called a delivery trade. At Zerodha, you need to use product type as CNC while placing a trade to take delivery of equity stock. The product type CNC will show up on your order window only if you have a demat account mapped to your trading account since you would require a demat to take delivery of the equity that you purchase.
At Zerodha we provide no leverage when you are executing delivery trades which mean that you if you want to buy Rs 1lk of stock as CNC, you will need this Rs 1lk in your trading account and similarly if you want to sell Rs 1lk of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.
2. Futures Trading – Equity (Stock & Index), Currency & Commodity
Futures as such are inherently leveraged which means that to buy X amount of futures you need only a small portion of it called as margin in your account. This margin to buy futures is stipulated by the various exchanges.
For NSE, Zerodha settles with exchange on T+0 and hence has the lowest futures margin requirement.
While trading futures at Zerodha you can use 3 product types:
NRML (Normal)
To take position as NRML you will need the complete exchange stipulated margin, but once you take a position as NRML you can hold the position till expiry, provided you’re maintaining such stipulated Exchange margins until expiry.
MIS (Margin Intraday Squareoff)
MIS is used by intraday traders as all open positions get squared off before the end of day. But since no position is carried forward overnight the margin required is also lesser than the exchange stipulated margins.
- For equity & Index futures, MIS margin: 45% & 35% of NRML margin respectively, all MIS positions squared off around 3.20pm.
- For Commodity futures, MIS margin: 50% of NRML margin, all MIS positions squared off about 25 minutes before market closing
- For Currency futures, MIS margin: 50% of NRML margin, all MIS positions squared of around 4.30pm.
CO (Cover orders) & BO (Bracket orders)
Cover and Brackets are unique orders at Zerodha where you can trade intraday but with a definite and compulsory stop loss. Since there is a stop loss placed, the risk of the position reduces and hence the margin required to take it reduces as well. Read this to know more on cover orders. Read this for Bracket orders.
Using Cover and Bracket orders, you can trade futures with lesser margins than NRML and MIS. Presently Cover order facility is available for equity, commodity and currency futures.
All the required NRML, MIS and CO/BO margins are updated on our Equity futures margin calculator, Currency Futures Margin calculator and Commodity futures margin calculator daily.
Equity Futures Margin Calculator
Currency Future Margin Calculator
Commodity futures Margin Calculator
Imporant
Even though we square off all intraday positions automatically around 3.20 pm, the onus of squaring off all intraday MIS/BO/CO positions lies with you. If any intraday position or a MIS/BO/CO trade is not squared off on the same day for any reason, it shall get converted as a Cash and Carry (“CNC”) or NRML position and carried forward to the next trading day. Our RMS desk shall square off any such position the next trading day without the requirement of a margin call, if the necessary cash is not available in the Client’s account.
3. Options Trading – Equity (Stock & Index) & Currency
Option buying:
When you buy options, either equity or currency there is no additional leverage we provide. So if you are buying calls or puts of any contract, the premium required to buy them has to be present in your trading account. You can trade options either with product type as NRML or MIS, but since there is no additional leverage provided if you use product type as MIS, it is advisable not to use MIS while buying options since all MIS positions would get squared off before the close of markets.
But note that when placing market orders on options on an illiquid contract where the ask price is more than the last traded price, you will be able to purchase at the ask price even if the money in your account is just enough to buy at the last traded price. Make sure to transfer additional funds immediately into your trading accounts if you buy for more options than the money in your account.
Option Writing/Shorting:
When you short an option, the margin required depends on various aspects like underlying, expiry, volatility and more. We are the first brokers in India to have an online SPAN calculator tool which lets you calculate the margin requirement for shorting an option by mocking the position in the tool.
You can short option either using the product type as NRML or MIS. The SPAN calculator tool lets you know the margin required to hold overnight or NRML margin, if you trade using MIS you will need only 50% of that margin.
SPAN Tool Calculating Option Shorting Margin
Important
- The settlement cycle in India is T+1 day in case of F&O (Equity, commodity, currency) and T+2 day for Equity delivery. What this means is that credit from sale of option contracts & any profits from F&O positions gets credited only the next day, and any sale credits from equity delivery trades happen on T+2 day. This credit is available for you to trade intraday, but there might be a short margin penalty applicable if you carry forward positions using this unrealized credit.
- When you send Market Orders in Options for multiple lots, our system checks only for the margin of the first lot and validates your order. For example, if you see the price of a Nifty option at Rs. 100 and you have Rs. 75000 in your account and you send a market order it validates only for the first lot and sends your order through. During execution if the price of the option goes higher, your order still gets completed although you will end up with a debit balance. This debit balance has to be cleared by you by end of day failing which you will be charged interest as per our policies until you clear the debit balance.
- Because of illiquidity of stock option contracts, market orders have been disabled on stock options. Only limit orders are allowed. Place a limit buying order higher than the current price or selling order below the current price, this will act as good as market order but will also protect from any impact cost due to illiquidity. You can place market orders on index options.
- For all intraday positions (MIS, CO, BO), even though we run square offs automatically, the onus is on you the client to ensure all MIS,CO,BO positions are squared before market closing.
The SPAN tool can also be used for calculating margin requirement for multi-leg trading strategies.
Happy Trading,
* this post was last edited on 8th Nov 2015
i have a doubt, I know that m2m is charged on the daily basis but what if u use 2 leg spread option strategies and lets say it went against your view, will i have to pay the margin on the daily basis.
I’m regular user Zeroda app. Like trading with Zeroda.
Want to trade in futures but does not need margin at all, is it possible that my order shall be accepted only if I had total contact value amount in cash in my account, this is for avoiding over exposure.
Thanks
Hello,
Why collateral margin cannot be used for option buying in zerodha? Option buying facility is available through collateral margin by other brokers. Just wanted to know why zerodha has restricted this to option writing only.
Hi Aman, we’ve explained this here. We’ve also noted this as feedback and will check into the possibilities.
Hi, please correct me if I am wrong, Gold Fut are around 5Lakhs, each tick size is 100Rs., so I observe that there is not much margin available for us.
(Physical Gold 100gms=5.9Lakhs, if one Re increased, 100Rs. profit)
If i want to trade in options with capital of 5crore and let premium price is 100, so that quantity is 500000, so how can i execute the order with single click? Please reply in details, thanks.
Hi Shubham, exchanges have quantity freeze limits, which limit the maximum quantities one can buy or sell in a single order. To get over this, you can use Iceberg orders, or Basker orders.
I am trading using demo account and l have trained a little bit now I want to trade real time so i have one major question . in kite if I am depositing 50,000 with a margin I get in intraday for 5 and I can trade till 2,50,000 . now my question is now I am making trade at a price of 1000 and I am buying 200 shares worth of 2,00,000 And I am taking a trade and can I take a another trade at the same time with the same amount . like buying two stocks at the same time worth . Can you clear this for me
In case of sell from demat balance, what’s the cutoff time by which one should purchase the sold quantity for it to be considered as intraday? Is it 3.20 or 3.30 ? It’s important for tax calculation.
Hi Paddu, open intraday positions are to be squared off by 3:20 PM for equity. We’ve explained this here.
Is there any interest on margin in intraday.
Hey Zeeshan, there is no interest charged for using intraday leverage.
Does my intraday profit gets shared with broker if I use 5X leverage?
Hey Simon, no, you don’t have to share any profit you make. You only have to pay brokerage. You can check out all the charges here.
Would the margin blocked also be released after T+1 day after squaring off option writing positions before expiry. I know that the profits earned would be released after T+1 day; just wondering if the margins that was blocked especially for option writing positions, would they be also released after T+1 day after squaring of positions on T day. Should I wait for T+1 day to use those margins that was unblocked
Example:
Yesterday If I sell NIFTY options and my margins (span+exposure) get blocked say Rs 1 L .
Today I exit (i.e. buyback) the same NIFTY options with profit of Rs 1000.
I know I should wait for T+1 day to get Rs 1000 in my account for me to use it without having to face penalty charges.
My question for the Rs 1 L (unblocked margin) as well should I wait for T+1 day ? Can I use the unblocked margin on same T day to write new options without facing penalty charges ?
HAI ,
if sold 2 options ( ce/pe ) to built straddle
then i need to adjust the straddle …. i exit PE OR CE …then can i take next order to built straddle with same premium amount on same day ?
i mean if exit or square of option selling strik …can i take new position with same amount or i have to wait for T +1
Hey Srikanth, the margin released after squaring-off the short option position can be used immediately for taking other trades. You don’t have to wait until T+1 day.
thank you so much
What is the charges on margin used for Commodity trading on delivery basis?
Sir, I am very happy with Zerodha and investing in Shares and Mutual funds. Recently doing Swing trading also. I have read your chapters relating to Margin requirements. Still, I need clarification for the following issues :
1. Margin requirement is applicable to swing trading equity delivery?
2. The sale proceeds of sale today can be used to purchase the share today?
3. How to avoid the margin penalty in Wing trading?
539243
For Intraday Options Buying and Selling (MIS), why am I not getting the GTT Stoploss & Target Percentage which I am getting for Overnight (NRML) mode?
I would like to place an Intraday Order, set the Buy/Sell Limit Price, set the GTT Stoploss & Target and focus on my desk job. The algorithm would do it’s thing whether I am Live at KITE or not!!
Call and Trade charges : around 5thousand deducted on this name over 4 years .. whats this and why is it being deducted from my account
Hi. Today i purchased Lot 25 4th Feb CE Bank Nifty @ Rs.469 units. I sold the same at Rs.406 with loss.
I again purchased Lot 25 @Rs.424 and now my average margin came to Rs.446.
However, when i tried to sell them @ Rs.430, I got an error stating insufficient fund your account.
I had 30k in my account. But why i was getting error Insufficient funds (i.e. 25 * 469 = 11725)
Also i observed, the stock price went to Rs.480 and my average price was Rs.446. but still it was showing loss in P&L balance.
Please assist.
why you charged above rs.20 ?
as per your rule rs.20 maximum for intraday trading, i was trade on 8th jan
i bought rs.930 (share price) & sold rs.950 (share price)
total share quantity: 100
at that time i paid brokerage rs.40
i purchased stock 1050 of Subex company past 18 days i invested 34000 today is 28000 ie 6000rs loss i sold but it deducts 12000 why plz justify
Hello,
i want to know if i short nifty future 1 lot how much money do need to have in my account. Do i only need margin money which is around 1.5 lakh per lot or do i have to have around 9.75 lakh (75*13000) rupee to hold that short position for a month or long
You will only need the margin amount.
hie, can you explain margin process for intraday trading?
what happens to margin when a trade is square off in intraday trading?
Nothing. If you square-off the trade the same day, the margin blocked is simply released.
I am holding XXXXX stock in my portfolio for years. Now i am thinking to book profit on the same. Do i need to have any margin for the same?? if yes, where can i see margin requirements.
Would the margin blocked also be released after T+1 day after squaring off option writing positions before expiry. I know that the profits earned would be released after T+1 day; just wondering if the margins that was blocked especially for option writing positions, would they be also released after T+1 day after squaring of positions on T day. Should I wait for T+1 day to use those margins that was unblocked
Example:
Yesterday If I sell NIFTY options and my margins (span+exposure) get blocked say Rs 1 L .
Today I exit (i.e. buyback) the same NIFTY options with profit of Rs 1000.
I know I should wait for T+1 day to get Rs 1000 in my account for me to use it without having to face penalty charges.
My question for the Rs 1 L (unblocked margin) as well should I wait for T+1 day ? Can I use the unblocked margin on same T day to write new options without facing penalty charges ?
Is there any update on providing limit for CNC trades, which was announced long back. Any insight on this would be really helpful. TIA
Dear Sir,
today i did a intraday Short Selling and i put a request for buying of Shares before 3.20PM but its not executed and Still Showing On Positions with Quantity .how this will be resolved.and at what time money will be credited in my account.
Hi I want info about NRML. I brought x amount of shares as NRML. After how many days do i need to pay the remaining amount ? Can i sell the shares before if i want without paying full amount ?
Sir
What is the method to place a target price in a Normal order for Crude oil Futures.,keeping in mind sufficient margin is kept in my account.
Place a Limit order at the target price.
OK.Thank you sir,
Regards
Suresh Nair
Hello Sir, (1) suppose in market hours if ihave two positions sell call in 10k loss and buycall in 10k profit with zero available cash balance,then will my sellcall loss adjusted with the buycall profit as my net profit and loss is zero OR ineed to bring extra funds to the account for the sellcall loss at that point of time with holding both positions…
(2) suppose if my sellcall position is in 10k loss and available cash is 10k in market hours and position running then will my loss 10k deduct from the available cash balance(10k) OR the exposure margin which was blocked before taking position at that moment…can you please elaborate how margins work
i had 30 shares of herohonda and by selling one share in equity(CNC) and bought 3 natco pharma shares on May 14th 3.28 PM IST, but there is haircut charge debited Rs.251? i have not pledged any shares and then why zerodha charged unnecesarily?
Best create a ticket on our Support Portal for such account specific queries.
Mr. Nitin Kamath
Horrible experience yesterday. Refer Ticket No. 20200422189899
Spoke to somebody around 10 am today too.
When I could not buy 9900 call of 30APR yesterday as order was repeatedly cancelled, Margin page showed that trading could be done between 9000 to 9350 strikes only.
On phone today I was told that
1. Zerodha had to restrict trade range yesterday due to Brokers (Zerodha’s) market wise limit
Were your customers notified at all ??
YET order for 9500 CE had gone through.
Perhaps 9500 falls between 9000 and 9350 !!!
2. I must have placed IOC order for Apr Fut order today as it was rejected . On Pi platform, there is no option of IOC order in LIMIT ORDER box !!
Of course decent burial has been given to the whole thing by closing the Ticket stating, issue is closed after our conversation.
IS NO explanation necessary ??
I don’t think Covid is the reason …….. This benign anarchy shows some of your group doen’t give two hoots if things go well or how a problem is explained / addressed.
Wonder which way things are headed at ZERODHA
May I have saner explanation ???? ( Please see attachments to my complaint )
A K Kaul
How to calculate Margin for Niftybank in futures.
Assuming 1 lot ( 20 ) for Bank Nifty April futures is trading at 20830 INR.
How much margin is required to buy 2 lots of Bank Nifty April futures in MIS( intraday )
hii sir,
i have 4000 rs. in my account . but i cant use intraday leaverage amount .
sir please help me how i can use leaverage or margin .
thank you
Why are MIS Margins now more than CO/BO Margin? I thought CO/BO margin was higher as it required mandatory SL’s
The margin requirements for BO/CO are dependent on the SL you enter.
Why are Buy Option positions on Date of Expiry is Auto-executed.?
At What time. ?
Sorry, can you be a little clearer?
If client use margin in intraday trading then is the zerodha apply any charges for providing leaverage ?
If yes then what are the charges ?
No, there are no additional charges.
Hi
I want to know if i use margin in equity trades and i make some profit, will i receive the full profit amount or will zerodha be keeping a percentage of that amoount with themselves.
also, as the MIS trades are squared off at the end of the day do you guys charge a small percentage over the margin or some sort of penalty if we lose the money when using margins.
There is no charge for the MIS margin, however, if you lose more money than what you have in your account and the account goes into negative balance, an interest of 0.05% per day is charged on the negative amount.
How do I hold MIS position overnight for equities? Is there additional margin required for that? Is it also possible to hold short position overnight.
No, you cannot hold an MIS position overnight. You can only use CNC for that, paying full cash. Also, you cannot short equity overnight directly. You can only short the future, write a call option, or buy a put option.
In my equity contract note, I cannot see one of my stock entries being squared off. I can see only the sell entry because I sold it in the MIS section, but there is no buy entry for the same. I can also see the stock quantity being negative, obviously because the stock was sold first but not bought subsequently yesterday. I also owe certain amount (exactly the amount for which I sold the stock) to Zerodha for this sell-only transaction. Does this mean the transaction is still pending and will be auto squared off in some time or may be in a couple of T days? Please guide.
Regards,
Yogi
Dear Team,
Using Stock Collateral margin can do the trade in Index(Nifty, BankNifty) options.
You can use collateral from pledging stocks to write options only.
Today is 12-Dec-2019. As per the Zerodha margin calculator, the NRML margin required to hold the overnight position on TORNTPOWER expiring on 26-DEC-19 is Rs.1,44,311/- and I had around Rs.1,90,000/- in my trading account. When I converted the MIS position I held in TORNTPOWER future contract to NRML position, I got a message saying that for NRML position the fund required is around Rs.2,10,000/- and I had to exit the position.
Is the Zerodha margin calculator showing the wrong information? Or is there any bug in the Zerodha trading platform? Please explain.
When are you guys providing delivery margin for stocks.
Working on this.
Hello Nitin,
I wanted to know that if I have a demat account with zerodha, are my stocks pledged only when I take a position or they are pledged irrespective because I understand that once I have stocks in my demat account, a limit is always available to me to trade. Or
Do I have to decide in advance if I want to trade, send an email asking for my shares to be pledged and only then will I be allowed to take a position the next day.
Regards,
Hi Alane, you don’t need to send an email. You simply need to go to your holdings on Console and place a pledge request. This is processed the next day and you can take positions.
Hi,
I want to know what is the amount that would require to trade in Nifty CE/PE option in intraday Trading.
Amount for
Nifty Nov 12000 CE – Intraday trade
Nifty Nov 11900 PE – Intraday PE
You can check out our margin calculator for margin requirements.
I am not able to trade in futures as it says “this segment is not enabled on your acccount” . I tried purchasing NIFTY 50 future using both the options “MIS ” and “NRML”, please help.
You are required to submit your income proof to trade F&O.
i have calculated margin for the following strategy on zerodha margin calculator and the margin required is around 25000
the strategy is
crude long @ 3750
hedged crude by buying 3700pe & shorted 3800ce
will i get margin call as all my positions are hedged?
You’ll need to maintain the required margins, as per the margin calculator. Any short-fall in the margin will result in a margin call. Also, note that the margins shown on the margin calculator may be slightly different from the actual margin required, as the trading platform calculates margins realtime.
Can I sell share, Which I have Purchased on same day by using cash n carry(CNC)…if it’s there in POSITIONS..?
Yes, you can.
Is zerodha provide intraday margin on the basis of holding stocks value?
You can pledge stocks to avail margins. The process is explained here.
On regular basis I faced margin issue in case of 1:1 call spread or put spread , if I have 220k on my account I should get leverage on delivery at list with 600 share of Nifty 1:1 basis, I can’t even put butterfly neither for delivery please do something with hedge positions for delivery positions.Thank You
Team,
please explain the difference between MIS and CNC.
Are there any extra charges associated for trade with these options?
thanks
Banwari Sharma
if i incur a loss in intraday trade and i have negative realised profit will the charges be auto deducted from my trading account
Yes.
Hi , i’m John , Suppose I have Ten thousand rupees , suppose the desired stock provided 13 times leverage , and i made the trade with the full ten thousand , and also made profit or loss, can I Make the second trade with the same leverage that day without getting deducted , because I get mails that i have use more than 100 percent of the leverage , is it because i made the second trade, is it that i’m limited to 10000 x 13 = 130000 , that day or could i make more trades (triple the amount) without getting deducted ?
You can use the 10k only once to buy worth 1.3lk(10k x 13). However, if you close that position, you can take a fresh position with the entire 10k.
And the brokerage remains the same with no additional charges ?
Sir, Hope you are well!
I have recently open the A/c & it is showing me the margin (Cash Transfer from Bank A/c) available is 10,000/- So how to know the leverage amount I will be getting. It will show in the Fund Tool Bar or where I can see the margin available.
If I short for Idea (Vodafone) Example:- Qty 2,000 @ 7.00 = 14,000/-
But Margin I have is 10,000/-
Leverage showing in the Zerodha is 4X, this means 4X 10,000 = 40,000/-
So, Margin or called as cash balance available multiply by Leverage i.e. 4X so, 40,000/- worth value stock I can buy for Intraday.
Please advise.
what does this means,
your EQUITY margin utilization has reached 169.07% of your available balance. Add funds on http://kite.zerodha.com/funds immediately to avoid square off. Team Zerodha
I got this mail from Zerodha
This essentially means that your position is losing more money than what is available in your trading account and you need to bring in more money. A detailed explanation is available here.
Nithin,
One thing i don’t understand, suppose i have 200 stocks of HEROMOTOCO in my demat account and sell JUN FUT or JUN Call option, why i should maintain margin. If i dont close the position by expiry date, Zerodha can sell the stock at prevailing prices on expiry date right?
Shankar,
The broker runs a risk of short delivery if the client ends up selling the shares in his demat before expiry and the F&O is exercised.
You can pledge the holdings to get collateral margin to fulfill the increased margin requirement.
I am not able to search put options for index / stock in the buying screen. Pls help
What are you typing into the search bar?
Please provide Delivery margin facility for long term investing, many people are ready to pay interest for that but the interest rate should be reasonable.
Should be available in some time.
Hey Matti,
Define “some time”?
Anytime in 2019? or the wait would be much longer?
Under Orders need information on tab called “Disclosed Quantity” How this can be used.
Thanks
Bela Patel
Hey. It’s explained here.
Beside equities can we pledge MFs and avail margin for F&O trades.
Hey Mona,
Pledging Mutual funds is presently not available. We are working on it and we’ll keep you posted.
I have a question suppose i have twenty thousand and leverage on a particular stock was 15.2 times , and a i bought the stock on full leverage estimated value at 304000 which is 100%.
and i have sold it ,end of discussion .
Well here comes my question will I be able to buy another stock on leverage another 100% , or will they charge alot and if so , how do they calculate. This way i can estimate the profit i can make on another trade.
Thank you.
Your service counts.
Yes, once you sell the stocks, the margin is released(after adjusting the Profit/Loss). You can use the funds to place another order utilizing the provided leverage.
Suppose I make a short straddle on expiry day on nifty. If I use MIS order then will the margin required be 50% of what is required for normal order on the same day ?
Hello,
My account has debiited Rs.27 rupees on yesterday, Can you please let me clarify me on this.
You can find all debits and credits in your account statement on Console.
If you still have a query, you can raise a ticket on our Support Portal for all account specific clarifications.
I am having the margin to short the option strike and suppose I have shorted after a day if the price go bit higher …again zerodah will ask to add the amount for margin or it is done at the time of shorting itself???
Can I transfer my February options contract to march options contract.
i.e if I have one lot of options contract with expiry of feb can I extend the expiry of my contract to the next month of March.
You need to individually exit the Feb contract and take a position in the March contract.
If the scrip is in Ban period, you can call our dealing desk, who will help you rollover the contract.
dear sir,
i bye share in cnc order and sell on next day , but i cant see fund in my account why..??, what happen..??
kindly provide help.
thankyou
You should be able to see the margins updated as soon as you sell the stock. You can, however, withdraw this amount only on T+2 as that’s the settlement period for stocks in India.
Hi,
I went to the equity margin calculator and input the stock name – INFRATEL but it only showed me stocks I can buy under MIS and CNC. However, I want to short INFRATEL or any other stock in intra day then how much is the margin required to short a stock (NOT F&O) in intraday?
Can we hold options over night without POA ?
Yes, you can.
Sir I have cash of Rs. 10000. I have purchase stock of Rs. 100 per share i.e. 100shares . I have choose product of Mis intraday.if stock price increases to 105.and margin for that stock is 14x. So can I get profit of Rs.1400×5=7000
Does the status change automatically or I will be informed first? sir please let me know how can i use it there without opening NRI account.
Hi,
Do we have any means to know how much leverage/margin available for each scrip in mis type?
Presently margin for scrips for equity in BO is only 10%
Kumar, Margins for BO/CO are defined based on the Stoploss you choose to place and the stock. You can check the BO/CO Margin Calculator for the same
Faisal,
I did not pass a wild comment. You can go through Nifty 50 scrips and tell me how many scrips are eligible for 15%-20% margin, with 1 RE sl. I remarked after trying with .1 sl also. Previously every scrip had a convenient margin of 20.8. When we try to recover losses, then there is no margin available. Then you feel the difficulty.. CO had upto 37% for equity, now is also reduced to 10-15. Only futures are well supported by CO. When there is auto square off available, then why limit BO’s and CO’s? Trader works with a calculation. When an available margin is not there, then you need to rework on qty by which time price changes. Nowadays I am taking only 10 times, at least saves time on recalculation.
Secondly, why there is no target feature in CO? Is it NSE policy or Zerodha policy?
Thanks,
Kumar
You can check the Equity margin calculator to find the leverage we offer under MIS.
Hi,
I have opened demat account in zerodha and i have to go abroad for further studies. So i want to know,
can i trade in zerodha from there.
You can use the account there, but if your status changes to NRI, you’ll need to open an NRI account.
Does the status change automatically or I will be informed first? sir please let me know how can i use it there without opening NRI account.
This depends on how you file your income taxes. Best you contact a CA or Tax consultant who can help you with the same.
Hi,
I have 2 questions
1. why am i charged 20 rs brokerage even when it is 1% or 20rs which ever is less, so when i buy stockes of 100 rs for intraday i am charged 20 rupees for brokerage insted it should be 1 RS
2. what if if Buy CNC for a share and sell it the same day will i be charged brokerage as CNC has no charge
Thanks
1. You will be charged Rs. 20 or 0.01%, whichever is lower. If you think you’ve been overcharged, please create a ticket on support.zerodha.com.
2. This is still an intraday trade and the brokerage would be levied accordingly. 0 brokerage applies to delivery trades only.
my margin available is 1015 and in console it shows my account value 974.
How is unrealised profit calculated in funds tab. Since that doesn’t tally with the unrealised profit shown in position tab
Hey Chintan,
We are working on fixing this. The MTM shown in the positions tab will be accurate.
In Zerodha , you don’t provide any leverage for CNC orders. Full amount needs to be in client’s account even to place CNC order. It happens many a times for limit order that the order is not executed and the funds remain with Zerodha overnight or even more time. Even if the order is executed, it takes T+2 days for delivery of share which means that funds remain with Zerodha for at least two days. Similarly, the withdrawal of unused funds takes 2 days to get credited in client’s account.
There are following two options to the above :
1) Unused funds may be allowed to be withdrawn immediately after closure of trade hours thru’ UPI
2) One may use margin by pledging the shares for CNC and recoup the margin by T+2 days.
If you don’t agree to above options, pl. advise alternate solution to the problem.
Can i use bank guarantee or Letter of credit from bank to get limit for intraday trading.
I’m afraid that wouldn’t be possible.
Hi,
I searched on your kite manual but I am not able to find my answer on below query:
Suppose I have certain stocks in my account which was bought on delivery, now there is 0 Rs. cash in my account but stocks are available so can I make margin / intra-day trade by considering the margin limit of stock available with 0 cash ??
Because most of other stock brooking firm provides such limit.
You can do this by pledging your stock holdings, however, as per regulations, you will need to have 50% of the margin required as cash. This has been explained in more detail here.
Hi Zerodha Team,
Begging of the blog it has mentioned as “If you are not enabled on the latter 2 exchanges, print the segment addition form and courier back to us if you wish to.”
i have recently created the account, How will I get to know about those segments have been added to my account or not? and mainly what are the benefits of adding those segments?
Kindly explain about this.
Thank you
Pramod Vasudev Bhat
Why can’t I buy a contract on the day of its expiry ?
Hi,
I bought options without stoploss
nifty 11400CE @ 108 sep expiry
auropharma 820CE @ 22 sep expiry
now i am going through a big loss (30k)
Should i hold till expiry or should i square off now
how much more loss will get if i hold till expiry ?
Any suggestions are welcome !
Thanks in advance
I am a beginner in Options trading.
1. If I bought a Put Option (RelianceSep18CE 1220 as an example) and a few days later (before expiry) I simply sell the PE at the same strike, is my position squared off automatically? The difference between premiums is my profit/loss? I do not have to pay any margins for the SELL leg, no matter where the Spot and Premiums go until expiry?
2. If I use a Bull Call Spread or other similar strategy (RelianceSep18CE as an example), instead of waiting till expiry, won’t it be prudent to track the premiums and square off one/both legs before expiry? Isn’t there some STT implication here that one benefits from?
3. Like charts of share prices, aren’t charts of premiums at various strikes worth tracking? Are they available anywhere, if yes?
4. Since NSEPaathshaala is closed down, is there any other mock trading platform for Options by any chance?
5. When I square off/ Close my Options Trade, will it still count in Open Interest?
Thanks
Hey Deepak.
1. No, you don’t have to pay any margins for the sell transaction(as it is a square-off order).
2. Yes, you can square-off the position(s) before expiry.
Yes, there is STT benefit if your square-off your long ITM options before expiry(Upon expiry, you will be paying 0.125% of the contract value as STT). Read more here.
3. Currently, charts for the strikes are available only for the period they’ve been trading for(maximum of 3 months). We plan to add continuous charts in the near future.
Can I do Intraday trade on a stock that is not in the margin list, if I have the cash?
If the stock is not in a trade to trade category, then yes, you can.
Zerodha Charge any fee if we earn profit using margin ??
No charges for intraday margins, Saurabh.
Suppose 10000 rupees cash amount available in kite zerodha account. So can i trade upto 50000 ruppes or somewhere near to that for intraday?
Because some trading companies giving such facility to there clients.
Can I open Zerodha demat(and trading) account without a margin account?
At Zerodha, there’s no concept of a ‘margin account’ as such. You open a trading and demat account and add money to the trading account whenever you wish to trade. Margins offered are basically the funds available in your trading account.
Hi, If i buy current month nifty futures and Sell next month futures what is the total margin required for NRML.
Hey Fazil,
You can find this out using the margin calculator.
IN EQUITY TRADING FOR INTRA DAY IT IS TERMED AS MIS AND FOR DELIVERY IT IS TERMED AS CNC ,WHAT TERMS ARE USED FOR POSITIONAL BUY FOR FUTURES & OPTIONS, SINCE IT IS NOT SQUARE OFF ON THE SAME DAY. PLEASE LET ME KNOW BEING A BEGINER,
i am new to this discount broking & need to know about the procedures to trade online , what is the exposure you offer against cash deposit in f&o segment, need to have a clear idea…..please guide
Sir can we use stock as a margin for derivative positional trades and if yes then any interest you charge or not
Hi,
How to place stoploss order in Options.
I have tried in NRML options, but it is not getting triggered.
with regards,
K. Prabhu
Hey Prabhu, the SL would only get triggered if there’s a counter trade available in the market.
Hypothetically, if Nifty 11000 Call Option LTP is 56, and if i have to buy this call option, the only amount i would require is 56*75(1 lot)=Rs. 4200/- right?? No margin to be kept and also no margin required if i square it off right?? Thanks for your help
That’s right, Alok.
Is margin required if i have to square off a bought option. Also, when is the amount credited to my account after square off?? Thanks
No margin required to square off a position. The margin for the position is released as soon as the position is squared off and this can be used to take trades. The funds can be withdrawn from the next day.
Hi Sir,
I cant see my shares pledged in the collateral of my Kite app nor in my Q holding at the end of friday after market closed. What is the reason of so as I didnt enter into any position on this day nor I placed the request for unpledging?
Hey Yaman, can you create a ticket here https://support.zerodha.com/.
Order Not Placed and getting the following error. Can you explain what it means?
RMS:Rule: Option Strike price based on Ltp percentage for entity account-ZXXXXX across exchange across segment across product
Today i did Intraday trade by taking Leverage Ex Bought Union Bank 1000 shares at 94.5 and Sold it at 96.4 and i earned Rs 845 by deducting all taxes, Aparat from all the taxes is der any extra charges apply for this by Zerodha???????
All charges that will be levied are listed here. Nothing more.
As per the latest SEBI circular, additional margin collection (exposure margin) for index options has been deferred until July 1st 2018. Will Zerodha auto sq off in case account balance drops below exposure margin for June Series?
We’ll wait for clarity from the exchanges and SEBI. Until then, the current RMS measures stand.
is zerodha change his Leverage plan ?
when i open my a/c that time i get 20.7* time Leverage but today i get only 10.3* time Leverage.
why ??????
reply soon.
Hey Madhvesh, the leverage offered is dynamic and changes based on various factors. You can check the margin required here. In case of BO/CO, the leverage is dependent on your stoploss as well.
you increase the margin from 33x to 25x .pls if u further increase the margin then inform the trader before
your page says – Even though we square off all intraday positions automatically at 3.20 pm, the onus of squaring off all intraday MIS/BO/CO positions lies with you.
i have following question –
1. if i want to sell between 3.20 to 3.30 pm what are the steps to be followed.
To keep the position open beyond 3:20, you’ll have to use CNC/NRML.
so we dont get any margins for that? even if its intraday.
Intraday trades have to be in MIS/BO/CO. The leverage is offered considering the fact that these positions will be squared off by the user before 3:20 else we have the time to square them off on our end. When any of our clients trade with leverage, the risk of the remaining amount is taken by Zerodha and this is a means of mitigating that risk. If you want to hold the positions beyond 3:20, you’ll need to use the NRML/CNC product and bring in the full margin.
Thank you
what is Formula to Calculate Margin/Leverage in Intraday MIS in Bracket Order ??? Because With Variation In Price of Share Leverage Change. I have to Update Daily for every Stock Which is Very time Consuming.
It has been 2 years since you are talking about the margin lending to start soon. You have got nbfc licence too. What is pending now? Is it ever going to start ?
Wanted to understand how can i convert my MIS future order to NRML and use the margin provided by zerodha .
Please explain me the process.
Hello Sir,
I have one query , I’m doing intraday trading on leverage by zerodha account, I used 11x to 14x leverage by zerodha in intraday trade
I have question that is it any charges applicable to this leverage i used ?
Hi,
If you have traded a strategy comprising for stock future & call/put options, in case of closing the strategy by simultaneously selecting the trades, only future gets traded. To execute the options, you have place separate limit orders. You miss opportunity book profits or limit your losses due to this.
Why don’t Zerodha places a limit orders with CMP as trigger price for stock options?
Hope you understand the problem & do the necessary changes.
Rgds
You can do that on your end. Doing this selectively for stock options isn’t a feasible option, neither is changing the order type after confirmation a correct practice.
matti,
there is query i raised on April 25th, can you reply on the same
sir zerodha proviede margin in CNC and BO & CO(Bracket order and Cover order ) sir
1) Zerodha can using margin market Pre-open session can use that sir Time 9.00 to 9.07 time of preopening can buy stock sir
2)please tell can i buy or weight market open
Yes, you can place MIS orders in the pre-open session.
HI Nikhil,
How can I set a bracket order for breakouts in kite. I mean placing the order(say buy) before the breakout in the upward direction. Currently bracket orders buy should be less than market price. When price reaches that level it gets triggered. But if I place buy greater than market price then it is executed immediately which i don’t want to happen . Please help
You can use the SL order type while entering the bracket order to achieve this.
Hi Mr Kamath,
I need one information, Zerodha sends EOD margin statement and contract notes at the end of the day. if on any given day Margin statement says that all the margin requirements are met and there is no margin requirement then on that day can your back office team levy penalty stating that there was margin shortfall.
some currency margin penalty charges were levied in my case but on that respective days, EOD margin statement says that there was sufficient margin and no additional margin required.
can you please clarify?
thanks
satvinder
this is awaiting your reply since 25th April. is this the service you provide to our customers?
I want to know if I can auto sell shares on certain price like if I buy 10 share at 105 per share and want to auto sell at 107.
Hi Nitin
I am a zerodha customer and mostly deal in option trading .I recently transferred some stocks from india bulls to my existing zerodha account to get some extra margin while trading.However,I am not getting the benefit of stock margin while buying any call or put options.Kindly let me know the reason behind it .
Regards
Kanishk
Hi Matti,
thanks for your earlier replies.
just one more question, if I am carrying positions in currency segment which has a settlement of T+1 day. for example, if have 100 short 65.5 ce option, the ledger balance is Rs10,000 only on day 1. next day that is on day 2 I bought 100, 65.5 ce option and sold 100, 65.25 ce option then will there be any penalty.
i am assuming since both the transaction has T+1 settlement then there should not be any penalty. can u please guide.
thanks for your help
Satvinder
Hi,
Yesterday, I sell the 6 shares 180rs by MIS.. that time I had fund 110rs in my account. The end of the day, 6 shares completed the position by 179.25. So I got the profit of around 4rs. The fund value showed as 115rs something. But today I saw my fund value,it is decrease to 90. I was wondering why 25 rs deducted from fund again even I got profit?
Taxes and charges would have been deducted at the end of the day. Check the contract note and ledger for details.
Mr Kamath, Can you please update me on Margin penalty on currency options and futures. As far as my knowledge goes short margin penalty is levied if the clear balance is below SPAN margin and not below SPAN+Exposure.
I believe this is true for both NSE fut+options and Currency Fut+options.
can you throw some light?
thanks
Satvinder
ZO6352
For currencies, you’ll need to maintain both SPAN and exposure to avoid margin penalties.
Again you didn’t reply to my specific question. Does exchange levy penalty on clear balance below SPAN or below SPAN+Exposure. Can you please confirm this for Currency fut+ options and NSE eq fut+ options?
are there different rules for NSE FO and currency FO for margin penalties and margin requirements?
thanks
That is exactly what I am saying. For currency futures & options, exchange levies penalties if the margin maintained is below SPAN + Exposure, while for Equity F&O, maintaining SPAN should be enough to not attract penalties.
BankNifty is presently trading at 24400. Margin requirement for 23000 April Put options is 82500 while for 24000 April Put options it is 65000. WHy would margin requirement for a more OTM option be significantly higher?
Regards,
Apoorv Sood
What happens if i loose a some amount while trading using BO……if i loose 670 rs….what will be my total lose…is it 1000….if not …..mine is 1000 loose and also call and trade charges….while i dont use to call and trade…..
Since u have mentioned u luv playing poker.. Any tips on poker?? or any info on where I can play 3 patti lyk a pro :):)
I have Commodity MCX Crude oil mega lot (19 March 2018 expiry) in NRML mode by at 4095 when it was on top, suppose till 19 March it’s expiry date I didn’t get my buying price so what will happen?
1- Do you convert into April lot or cut my position?
2- If it will convert in April lot expiry, then what is the procedure and charges should I bear?
Please suggest! I am very confuse.
Regards,
Gaurav
9911215292
WHAT IS THE MARGIN REQUIRED IN NRML, CNC IN DIFFERENT STOCKS AND WHERE WE GET THE MARGIN TABLE FOR DIFFERENT STOCKS.
Hi, Would like to say a great product and Idea of Zerodha. Though as an investor i see few missing points.
1. There is no choice for user to chose from NSDL/CDSL for Demat and all are forced CDSL accounts. (which in a way is bad as i personally prefer NSDL based account and I have my personal reasons for same)
2. Despite of huge margin(Portfolio) of mines to buy a share of 1/100 of that value also i do not get credit and have to first transfer money to account which is the most pathetic thing I can see. Looking at market fluctuations I might buy or sell things. I have no pre-thought how much money should I keep in Zerodha before that. I anticipate that atleast since the trade is T+2 you should allow at least 2 days of credit to user and if person does not pay in those 2 days you can levy heavy interest or can pledge the existing shares in his/her portfolio.
Hope to see you overcome both the above problems soon.
This is the one of the point I am thinking twice to switch to Zerodha. Currently I am using Indiabulls , I can buy shares without parking my money with them.This is great advantage.
I put many orders without money at low price and if executed , I will pay if not no need of money.
Hi Team
I would like to calculate the total margin requirement programatically, could you share how exactly the margin tool works, or any links or information ?
Thanks
Hi Nithin
I have an open NRML F&O Order and its expiring tomorrow. Can i roll it over for the next month? I am not able to see this option. I am maintaining the required margin.
Hello,
I have a question about swing trading. If I want to carry forward my futures position (NRML) overnight, then i am exposed to overnight trading risk. In case of Long position, if on the next day market opens much lower then is my Stop Loss order going to be executed even if the next day’s opening price far below the my SL (Limit) price?
For example, if I took Long position in Nifty Futures (NRML) at 10,200 and the Stop Loss(limit) order is at 10100, suppose the market opens next day at 9500 (Hypothetically), then is my stop loss order going to be executed?
If not, then how do i overcome this overnight trading risk, as situtations like these can wipe away one’s trading account.
Regards,
Ritvik
Hello,
I have query about option spread margin leverage. For executing sunpharama short strangle of FEB2018 expiry strike price 540 put & 630 call. How much fund require for executing order?
You can check out the margin requirements on our margin calculator.
How to add margin in zerodha and how to check minimum margin and available margin.
Hi,
Can i trade in options using CO. Also please clarify whether I can trade only Nifty and Bank Nifty or Stock options also. Would also like to know the Margin leverage that I will get under CO.
Thanks,
Darshan
Dear Support,
Please take note of serious concerns over margin calculator. please inform clients time to time about changes in Margin in whichever the case may be, margin leavrages are getting drastically changed (on budget day, even after budget day) no information in provided through SMS, mails, notfication over Kite platform, on margin calculator tool & not even published in Your Bulletins page. in such scenario as trader it was extremely diffucult on my part to take or exit current positions on MIS intraday Equity products. losses are part and parcel of the business, still it was pure negligence on your part in providing informations to your clients. Expecting better support in future.
If I have forgot to exit the NRML currency future positions, will it automatically square off on the expiry date ? and at what time ?
I think there’s an issue with your margin statements. I’d logged an issue (#168320) in this regard. The ones that get emailed don’t seem to account for shares purchased on the BSE or Mutual funds (through Coin). This makes me feel a lot richer than I actually am, but has left a very unpleasant feeling as far as your support goes.
It’s taken over a week for an explanation as to why the numbers are different on Kite, Q and the statements I get by mail – and the advice is to “read the mail carefully”. The mail incidentally details none of the reasons I’d have more funds in my account than I actually do.
It’s obvious that your support staff (Anish A) is working hard, but not smart. Assuming a customer is mentally deficient rather than checking on an issue isn’t really what I’d expect from a young, forward thinking org.
The margin for MIS Nifty Futures is mentioned as 40%. So does it mean if I have money for 10 lots of Nifty future index, in intraday I can buy 14 lots (40% more)?
Please tell me how many nifty index future lots I can buy in intraday if I have the money to buy 1 lot in positional?
Nitin ,
settlement is T+1 for FNO.
1. Is that if i buy an option today at a X premium using regular order then i cannot sell today. Ill be getting it only tomo ?
2. If i square off a regular option buy before expiry then when will the amount get credited ? Is that tomo or onky on the expiry ?.
Pls clarify . Thanks in advance
1. You can sell the contract at any time. The settlement is just when the money actually hits your account. You can only withdraw the funds after settlement.
2. You receive the credit on T+1, no need to wait for expiry.
Sir,
Is there any hidden charges for leverage given by zerodha for intraday trading ??
Hello Nithin,
Do we have GTC or GTD order options on Kite platform ?
Hi Nithin,
I found Zerodha is great tool for trading. I am loving it. Thanks for simplicity and openness. can we have inclusive & deep learning video about tool? Also good to see if you share your knowledge across board on trading insight & best practices.
I am proud to see that Bangalore start up is taking great shape.
Wish you a great success &
Hi, why there is no leverage for executing delivery trades, if I you want to buy Rs 1lk of stock as CNC, why would i need to keep such full in cash. Why do not you give margin against my holding? Thanks
For delivery trades, the exchange requires us to present cash at the end of the T+2 day. If you’ve pledged your stocks to buy these stocks, where would we get the cash from?
Sir,
When exchange requires you to pay in T+2 days why do you block funds on the same day of placing order if that is the case you should allow your clients to withdraw amount on same day when sale order is executed why do you take T+2 days to release our fund.
In a way I strongly believe that based on portfolio you should provide margin and allow your client to take position and make payment before T+2 day failing which you can liquidate the shares for the amount due to you, anyways we all have executed Power of Attorney in your favour so nobody can raise any grievances for their stocks being liquidated and/or the other option left is charge interest on delayed payment.
Hi,
I place CNC orders on a daily basis. At the beginning of the day, it is very difficult for to estimate the total volume of these orders. Hence, managing margins is a bit of issue unless I leave a lot of cash lying underutilized in account.
How do you check available margin for CNC trades, do you look at cash available in account, or total margin available after adding additional margin on account of pledged securities. During the trading hours, if there are multitude of Bracket Orders and CNC orders, will your system be intelligent enough to let all CNC orders through as long as margin for non CNC orders is being met through margin from pledge?
For example, Assume that i have Rs 50000 cash in account and Rs 50000 additional margin available from pledge, so total Rs 100000 margin. I want to know what happens when I do the following:
a. On a given day, I place an order to buy Rs 80000 worth of reliance securities in CNC. Essentially, I have enough margin available but cash available is short.
b. On a given day, I place an order in NIFTY Futures which consumes Rs 40000 margin. Then I place an order to buy Reliance in CNC for Rs 40000. So, I have enough margin to support both trades, but fno order is placed first. So will the first order in futures consume 40000 cash margin leaving only 10000 for subsequent CNC order or both the orders will go through.
c. Can we do something like that we maintain enough margin in form of liquidbees, pledge it you, and then place CNC orders as required during the day. Then closer to end of the day, we sell required no of Liquidbees to ensure that we have sufficient cash in account to cover for all executed trades in CNC orders.
d. Further, in stocks says I buy 100 shares of Reliance and after 10 days, I do intraday sell buy of 100 shares in Reliance, then there is no activity in my demat account for the share. Does the same apply to Liquidbees?
Regards
Saurav
Hi,
I’m new to online stock marketing & I’m a beginner. I have created trading account online thru aadhar in Zerodha for Equity. As i said, I’m a beginner I want to invest for long term. So, Having demat account is mandatory?
Yes, a demat account is where your shares are held.
Can we do short selling in cash segment also for intra day ? Almost all the brokers provide this facility and if yes how can I do it?
Hello,
I am new to stock world. I have places CNC order for SBI and then on next day i did exit on market rate still it is showing as open position
Can you help ?
Br
Samrat
sir my request is zerodha should start margin facility like kotak or icici where one can hold margin position for some days , paying some interest
Yes, coming up with a margin product soon.
Hi,
Where can i check what is the overdrawn amount incase of short put option contract.
You can check out the Kite dashboard and see if the margin used is more than your account value.
Hi , I request you to please don’t add extra amount as margin in my account from Zerodha side.
Hey Sahdeep, simply use the CNC/NRML product type while placing orders if you don’t wish to use any additional margins.
Hi,
I plan to open an LLP for doing FnO trading and want to use my currently owned shares and mutual funds holding for pledging and getting margin for FnO trading. Can I use the shares in my own demat account (being a partner/owner of the LLP firm) as collateral without transferring to demat account of LLP firm. The reason is that once I transfer the shares/MFs to the LLP demat account, it is change of ownership ( which I want to avoid) and also I will have to pay tax for whatever capital gains is calculated at the time of change of ownership.
I’m afraid that wouldn’t be possible Naveen. Margin from pledged shares is only available for the same account as where the stocks are held.
Zerodha,
How many times during the day do you change the margin requirement for a stock futures? My understanding is that NSE updates it 6 times a day, though I am not sure of the time-frame before and after the market hours if you can let everyone know about it in the interest of all.
Thanks
Need to open an a/c with Zerodha.
1. Can it be done thru Online. I have Aadhar Card with me. Is PAN card is mandatory ?
2. Since i am in Bangalore, can i open a/c OFFLINE also? if so, what are the documents required? whether your representative approach us to collect the documents.
3.How should i contact, Ph.no.pl….
need your support
Hi Zerodha,
While trying to trade on Equity margin for Goa Carbon, Rain Industries no margin providing. I remember until 1st week of November, you have provided the margin for Rain, but not. Is there any specific issue on this.
Thank you.
Hey Aravind. The margin requirement for any stock is defined by the RMS team based on the market conditions for the scrip.
Hi,
Please explain me the difference between “squareoff at market price” and “squareoff at LTP”.Yesterday I lost my profit and ended up in loss because of the confusion of “squareoff type”.The price at which it was squaredoff(in market price) was too low,that I endedup in loss.I just want to know,whether “squareoff at LTP”,will be just one LTP (LTP at the time of order execution )or series of LTP as per the fluctuation.If it is just the LTP at the order of execution,will I have to wait till the LTP bounce back.kindly please explain.Thanks.
How much shares we can buy from Zerodha platform ?
can we do bulk deal or block deal from our platform ?
if i want to buy 2.5million (25 lakhs) share of some ABC stock then how can i buy ?
or
is their any limitations for buying volume ?
or
is their any other sources from you ?
Thanks.
Regards,
Tejas.
After trading account is opened should i need to transfer fund to make it account active? OR i need to transfer fund when i want to start the trading? Kindly advice.
Tejas, your choice. You can transfer the funds anytime you choose to.
will i have to pay aditinaly for future contracts if i carry it overnight for some days?
Penalty will only be applicable if there is a margin shortfall in your account. As long as you have complete margins you are fine.
Dear Nitin
I have a question regarding CO.
Why the stop loss price has to be so close (20%) to LTP?
It becomes very difficult to trade during expiry when the option prices are very low.
for example: NIFTY 1 Rs LTP can easily touch 1.2 Rs.
Hi Nitin,
I had a question regarding the total margin required for trading futures.
Supposed I go long on 1 lot (1000 qty) of Tata steel, the cmp is 713. The total margin required for this is about 80 k that’s showing up on your calculator.
I hedge the position by buying 1 lot of 700 PE.
Now, the combined margin requirement is about 60 k on your calculator.
But, my max loss is if the price expires at 700.
Thus, I’m losing 713-700 = 13 x 1000 = 13 k on the futures long.
And 14 x 1000 = 14 k on the 700 PE as it will expire worthless.
My max loss is 14k + 13 k = 27 k.
Why is Zerodha blocking 60 k for this?
Hi,
Can you please let me know the brokerage charges for equity option that is 20 Rs is it for a single contract of option or for a whole lot size.
Thanks & Regards.
Ketan
Ketan, it is Rs 20 per transaction regardless of the number of lots. You can check out our brokerage calculator to calculate this yourself.
if we buy some stock today by cnc type on same can we sale if price is higher
Nares, yes you can. The transaction will count as intraday.
Hi,
I apologize if this covered above, but several searches could not lead me to an answer so the question below.
Is there any page on Kite/Zerodha to view margin blocked by each position? I often need to churn my positions based on best utilization of margin. Where can I see margin blocked by each position?
Best,
Rushabh
Hi Nithin Sir,
I am waiting for your answers/views patiently on below questions towards Risk perspective.
Assume; a client holds the hedged position & if there is a substantial Upward price movement in it, then;
1) Do Zerodha square-off positions without notifying to the client/s? If Yes, which leg/s in the below cases;
a) Debit/Credit Spread Options strategies
b) Long Future & Short Option strategy
c) Short Future & Long Call Option Strategy
2) If the Answer of Question 1 is “NO”, then, do Zerodha ask for additional Cash? How much & When (time windows if any)?
3) As you aware that on 25th October; the gap-up opening for SBI was greater than 20-25% (Rs.320+ levels). So, in this situation how Zerodha deal/managed / would have managed, if I would have carry the Bull Call Spread for 255 & 260 strikes on 24th October & if I had only 10,000/- Cash left in my Margin Account after utilizing the required SPAN + Exposure margins earlier?
I need your help to understand the concept of LEVERAGE ?
how and when can i start using Leverage for intraday trading ?
Is there any specific criteria for getting 10 times Leverage ?
Pankaj, check this post which explains this nicely. The leverage on stocks/contracts is decided by our RMS team based on various criteria such as volatility, liquidity etc. You can use the margin calculator tool to calculate the margin requirements.
how many time i trade in intraday for equity?
You can trade as many times as you wish as long as you have enough funds in your account.
Hi,
Can I purchase on CNC and sell on the same day? Will this be considered as Intraday?
Hi Team,
I want to clarify on few things since i have just opened my account with Zerodha. At the start of day, I see an opportunity in some stock & take intraday position using MIS option but before 3.20 pm, my target return is not achieved & now I wish to convert this position into delivery so as to avoid any loss but my margin account is short of funds, is it possible to convert the position to CNC & NEFT is initiated immediately after market close to fund the account so that it settles the credit on same day. Can you please advise if its possible & does Zerodha provides margin for delivery trades atleast for a day or two basically before settlement(T+2).
Please reply kar do..
Hi, I am new on zerodha.. Yesterday I bought shares of around 8500 cnc, regular.. Now the balance should be 1500 but it is showing 1473.00. I credited my account with 10000. I want to know when zerodha is not charging anything for cnc then why they have cut 25 rs from my account.
Hi,
Is the margin calculator not updated on regular basis ? Ex, It says for ACC17OCT it says the margin required is 86,072.But when I try to buy one lot it got rejected with below message,
“rms:margin exceeds,required:100382.22, available:95845.58 for entity account-XXXXXX across exchange across segment across product”
can you explain how 100382.22 is being derived ?
Thanks and Regards,
Kiran
Kiran, the margin calculator is updated at the end of day, it doesn’t show you live margin requirements.
Sir
Any update on funding/margin for delivery positional trading in cash segment..As being a succesfull trader I think u understand the problem..
Hey Manju, will take more time.
Hello. I had a question:
If I invest an amount of Rs 10,000 and let’s say I get a margin 10 times that, i.e 1 Lakh to trade with, so what will be the charges on the 90,000 you provide as loan? Apart from the trading charge of Rs 20, will I have to pay any interest on it if the trade is not intra day? Secondly, can I trade on commodity without margins? Thanks.
Hi Syed. The leverage you receive from Zerodha is purely intraday. You’d have to use the MIS product type to place these orders. MIS positions are required to be squared off by you before 3:20 PM for equity and 10 minutes before trading stops for commodities. If this is not done, the positions are squared off by our team at the market price.
You can indeed trade commodities without additional margins. You simply need to use the NRML product code while placing an order.
Why are some securities (eg. Rcom, Rcapital, jsw energy etc.) under ban for trading in futures ?
Check this answer.
sir
99% stock companies(erosmedia..etc)for intraday equity trading recommended by “epic research”,a top stock market advisary firm….
aren’t listed for margin/leverage….why?
while there is a option of bo&co orders…
We don’t give margin/leverage for intraday if stock is hitting circuits.
i got a mail that my margin has crossed beyond limit ..102.42% plz add funds to your account what should i do my account is funded properly …i further i had calculated my margin didn’t exceed that limit still it was showing that..
I’ve answered it here: https://tradingqna.com/t/margin-call-mail/21015
Hello Nithin,
Hope you are doing good.
I have few concerns like :
If i invest 100k, upto what credit limit am i eligible for in Zerodha ?
How many intraday transactions are allowed per day on a single stock ?
If i keep a margin of 0.5 for every sell on a penny stock, will the intraday transaction go through ?
Thanks,
Nazeeb
Nazeeb, depends on the stock. Check this list: https://zerodha.com/margin-calculator/Equity/. It is higher if you use Bracket or cover orders. Most penny stocks are in T2T category, so intraday won’t be allowed by exchange on them.
Is POA required for intraday equity trading ? If no , will i get margin amount for intraday ? (Equity )
Not required for intraday. Yes u will get margin.
Hi,
What is margin available?
What i get from your answer is i can trade in these bonds/debentures. Please correct if i am wrong.
Also how much margin is required for this debt market orders?
You could buy them as long as they’re trading on the secondary markets. There’s no leverage on this, so you’ll need the actual order value as margins.
Thanks for the inputs. I have submitted new account application with your ahmedabad office yesterday.
Can i trade in securities listed in retail debt market of BSE and NSE? Some of the scrip codes are as below
IDFC Bank N1
IDFC Bank N2
IDFC Bank NC
IFCI310312A
IFCI310111A
I am looking for the broker who offers trading in this above mention scrips.
You’ll have to add this on Kite and then you’ll be able to buy/sell. Just type the series (N2,N1,NC) on the Kite searchbox and you’ll see all corresponding scrips.
I added fund of 4.3 k and then purchased stock of 2.4 k. Initially it was showing t 1.9 k as margin available
now it s showing same 2.4 margin used but 6.11k margin available and account value as 4.28 k
Are margin provided by zerodha chargeable??
If yes then at what rate please explain.
Intraday margins are not chargeable.
Hi,
I am a new trader. I have a question.
Is there a limit on number of times you can buy and sell a stock or contract for ex Banknifty 14th Sep 25000 CE in a single day on NSE?
No limit as such.
Dear Sir,
What is margin used?? And can I withdraw it??
Margin used is what is blocked for your open positions. Can’t be withdrawn.
Hi Nitin,
I have been using your stock pledging facility for some time now in combination with liquid bees for complying with minimum 50% cash equivalent condition. My problem is when the stock prices go up over time the 50:50 balance get disturbed . I will know of this only when the interest charges start showing up in Q. Calculating this on a daily basis is quite cumbersome since i need to calculate value of initial cash available +/- MTM , change in collateral value etc for arriving at the final proportion. I was wondering if it would be possible to have a pie chart or indicator in Q or in trading software to indicate the real time situation so that we do not unnecessarily incur interest charges. It would also be a great help if Q dash board can indicate net overnight cash levels in the account.
With best regards and congratulating you on a great job done with various customer friendly initiatives.
Makes sense. Adding it to our list of things to do.
Hi Nitin,
Any update on this initiative. It would be useful to have such a tool
Hey Nilay, nothing yet. We are fully focussed on moving to our new backoffice. Will keep you posted about this.
Dear Zerodha Team
I want to know do you have E-margin products for Equity stocks (can carry forward the positions to the next few days) for Intraday traders. Thanks.
Raju, we will be introducing soon.
Hi Nithin, any ETA? Please?
Hi Nitin,
I saw F&O obligation amount is debited in ledger when there are no futures holdings
Why some amount is debited still if there are no future holdings?
Are they penality charges?
This is both futures and options. Also if you have exited it yesterday, there might be obilgations on it for yesterday. Best to send account specific queries to [email protected]
Hotkeys for buy / sell equity are not working on macbook. Any solution?
This is for Kite is it?
What does a broker do with exposure margin or any margin (based on their risk assumption) charged more than SPAN. Are they allowed to utilize these funds for their business, loan them out, or use these funds to provide margin funding for other clients, or earn nominal interest?
SPAN + Exposure is blocked by exchange. Anything over this a broker blocks as per his risk again stays in the exchange client bank account. No client funds can be used for any other purpose.
Can a broker ask for more margin than the exchange stipulated max SPAN and max EXPOSURE margin guidelines when selling options?
Yes he can.
Could you please provide some time frame for getting Margin delivery for equity (CNC). I heard from CEO says that you have got licensed for NBFC(If i am not wrong).
Really great if you can provide some lights
We will start off with loan against securities first.
If my margin is low and im trading with leverage. will you deduct 20 rupees for each trade as call n trade services ?
As long as a dealer is placing an order for you, call and trade charges will be charged.
When will the zerodha provide margin lending for delivery based equity in CNC type. You had mention this earlier in site, it would soon start this provision?
Above, two of my same posts are ignored by you…..Is there any specific reason as you are perfectly answering all other queries ????
We’re working on setting up the systems, we’ll announce about it soon.
Hello,
it has been many months since you have got your NBFC license and also, setting up the systems should not have taken that much time. Please be true and inform that whether it is going to launch or not. I have a serious doubt on it now.
Dear Nithin,
I have a question regarding overnight position in banknifty futures.
Suppose I had bought 1 lot banknifty futures and maintained enough margin (say Rs 60000) as specified on a daily basis.
Now what would have happened on the demonetisation day, Banknifty opened roughly 1300 down.
What would have been the margin requirement at open?
Would the position be squared off at open?
Yeah, any point of time if you lose more than 50% of the margin to hold a position, it gets squared off automatically.
Just a question, what would be the safe margin requirement in that case? 1300 points on banknifty would be 52000.
Would i still have the position squared off if I had more than 52000?
As per historic statistics and your personal view, what would be the utmost safe margin that needs to be maintained to cater to such unexpected events?
The best way to trade F&O is using the least leverage as possible. Most professional traders don’t look at margins, but the actual contract value. So if the contract value is 5lks and margin is 1lk, keep 5lks in some form in your account. I know it sounds extreme, but I’d suggest keep atleast 40 to 50% money in trading account as margin.
The 7th anniversary is next week. Are we going to start the margin lending serice from next week. It is readily available with mostly all other firms.
If this is not going to be launched in next week, please provide actual start date if possible?
We already had conversation in this regard in past and you said that 15 aug is approx date of launching the service.
I am eagerly waiting for this .
Dear Nithin,
Is there a way to disable margin / margin orders for particular zerodha account?
Ah no.
Sir i am a new trader in zerodha,
Can you please explane what is ‘Margin available’ and ‘Margin used’ on Fund Screen. and what is use of those values.
Margin available is how much money you have left that can be used to take new position. Margin used is what you are currently using.
when i opened account with zerodha in April there is no call and trade charges.
But zerodha changed rules later. recently i did BO orders using Kite API and i was unable to square off due to application crash. there are more than 160 bracket orders and zerodha charged Rs 3998 for call and trade charges.
Is this fair ? does it cost zerodha Rs 3998 to square of my 160 BO orders ? for auto square off how are the MIS and BO different ? As per your website policy on call and trade for me it looks charges are same for both. Your policy for call and trade is not transparent. I recently moved zerodha because of low brokerage. But you guys know the nice art of extracting money from clients. It’s better move to my previous brokerage itself.
Narasimha, I have explained here. If you square off yourself, there is no charge.
I am going to open my trading accounts with ZERODHA.
My Doubts :
1) Is Margin exposure available for F&O – If yes how many times and If no “Why” ?
2) Is there any turn over charges – Eg : If my turnover is more than 1 crore in this quarter any charge applicable.
1. Yes, 2.5 times for intraday (using MIS), upto 4 times if using bracket and cover orders. You can check this here: https://zerodha.com/margin-calculator/SPAN/
2. No turnover brokerage charges. You can calculate all charges here: http://b.zerodha.com/
Why don’t zerodha provide E-margin for more than one day @equity , when you are planning to provide this option
There are new regulations around margin funding. We are trying to have it up soon.
Sir i have one query on equity MIS order as your last post concluded that if i take margin on stock using MIS order then it is compulsary to square off your position on that day session but i have a dout that if I unable to square off my position like i unable to sell them in market that i bought then what happens after that. I pre asume a situation look
suppose i have 1 lacs capital and 20x it become 20 lacs after margin and i bought stocks and i chose a stock that have very low volume on that day so in that condition to which trader i should sell my stock how my positon get square off if there is no buyer or very less buy volume that i have on that stock please reply me soon waiting for ur reply curiously
There is a risk in leveraged trades. If there is not enough volume to trade, it will automatically convert to delivery. You will then need to bring in the rest of the money, or it will be squared off the next day.
sir why my cal options orders are being rejected ? status message is “exchg not enabled for this acct”
You’ll have to give us a proof of income document to trade in the F&O segment. I’ll get your Sales manager to give you a call and help you with this.
Hi Nitin sir,
is there any facility to input strategies like staddle, strangle, parity etc. into kite browser or android app and trade them like buy and sell with one click simultaneously. is it avialable in pi software? if so pls provide the link.
in case not avialable any chance of getting this feature?
coz executing one by one trade of the corresponding strategies is lengthy and if we have 2 or more different strategies in place then is is more confusing and puzzling.
Currently not, but we have some plans.
“Plans” means in near future na?
Eagerly waiting for it..
if i buy some stock on margin , can i hold position for more than one day,
Not currently.
Hello Sir,
If I trade using MIS facility. And on the same day if my target is not achieved. Can I convert them to CNC ?, How long can I hold the scrip ?, For that do you charge penalty ?
Yes you can convert, but you need to have 100% money to buy those stocks. THere is no penalty or anything for this.
Hi Nitin,
Can i know when e-margin facility like in hdfc sec and axis will be launched in zerodha.
It is been sometime that you had informed it will be launched
We just got our NBFC license, so hopefully soon.
Can i do a BTST call in intraday trading , ie : I buy a stock today using MIS and carry it forward to sell it tomorrow using the margin ?
Please revert.
Regards
can CO be used for BTST of futures?
No, only for intraday.
When Will the Margin Lending be going to start?
I saw your comment made on October 2016 that this is going to start soon and there was a guy who was waiting for this from 2-3 years. So in short from last 4 years it has been repeatedly mentioned that this is going to start soon.
Can you please provide some plausible date/month on which it is going to start for sure?
Committing the same thing from last 4 years is not a good sign and hurts the good will.
Saurabh, there have been major changes this month from SEBI on this. We got our NBFC license only last month, took us forever for approvals. Hopefully sooner than later now.
Nithin,
i urgently need margin lending service. I dont want to deactivate my trading account with zerodha.
If you can provide me some approximate timeline about when this service is going to start then i will cancel my trading account deactivation request from Zerodha.
Also, if there is more time (lets say after a couple of months or next year), then i want to switch to other broker firms. Apologies for this but margin lending is must for me. i presume it before i applied for Zerodha.
Saurabh, I am hoping to launch this on our 7th Anniversary on Aug 15th.
Thanks Nithin
i will wait by that time for sure.
In case your plan gets changed and postponed to some other deadline of future, please inform me. I am just waiting for margin lending service. My Customer id is AS0717.
Thanks very much for prompt replies!
The 7th anniversary is next week. Are we going to start the margin lending serice from next week. All other firms are already in it. If this is not going to be launched in next week, please let ur clients know when will it actually start?
Hello Nitin
Actually came across your site with lot of trading options. I am basically a equity cash market trader and currently doing business through an offline broker. Actually had a couple of queries before I could open an account with you.
If I have a certain balance in cash in my trading account with you and place a delivery buy order which is covered by the cash during the trading day. Is it possible to square my position at any favourable price point and not take delivery or Is taking delivery mandatory? I ask this because there is option of doing this with offline brokers as nature of trade is decided EOD.
Also I there commission charged for intraday trades? And can we link our trading account opened with you to my demat account with another dp.?
Please advise
Hi Suresh, yes you can sell intraday itself. Delivery not mandatory. And yes, commissions and charges will be as per intraday. If you link other DP to our trading, you will be able to do only equity delivery buying, you will need to use the other broker to sell. Best to open both with us.
Thanks, I will follow up with the accoun opening shortly.
Group A Script
E.g. EIDPARRY – Intraday Equity is available with 1x margin it expected that at least 10x margin for Group A Script
Having it checked.
Hi,
Yesterday i want to trade in BANKNIFTY 23900 call and spot price for BANKNIFTY is 23400 but i not able to trade when i contact to customer care he said that restriction 1.25% is applicable on strike price why so ??
Kaustabh, if open interest limit is hit, certain contracts get blocked to take new positions. On Banknifty, it is an issue on expiry day. Some deep out of the money contracts can get blocked.
Thanks for your valuable comment
Dear Nithin,
Can you please advise by when the limit order for cover order will be available to trade on commodities(Crude Oil).Zerodha support had told like it will be available from next version of Kite , if so by when the next version will be available.
Thanks & Regards,Prem
Can’t give you a date on it, but we are working on this.
sir
what will be the margin blocked for MCX GOLD for NRML if I put AMO orders like 1 lot BUY SLM at X Price and 2 lot SELL SLM at Y Price.
If i have sufficient cash in account and i want to trade for one day than which is lower cost (contract notes)me,MIS or CNC.
You can either of the products, same cost.
Hi,
I bought a Stock for around 2500. I sold it when it was making a loss. My original account value was 5000.
Now my Margin Available has Changed to around 4950 because of the loss. But my Account Value is 2500 and my Margin used is the loss amount. Why is the amount for which i sold not added to my Account Value. ( Say my loss is 50 ) why is 2450 not added to my account value?
Settlement cycle in India is 2 days, what is sold gets credited as cash only after 2 days. Until then, you can use the money to buy other stocks.
We can use the fund to buy fresh stocks but when we use the fund for options carry forward positions we are getting margin penalty charge , looks a bit odd.
In equity, settlement happens on T+2 day and broker is allowed to fund this upto 7 days. When you buy fresh F&O, exchange mandates that funds have to be there in the client account on the same day and no broker funding.
I want to open an Account with ZERODHA but before that I want to know whether I will get any margin against my shares held with zerodha, if so how much margin will I get if I have 500 reliance shares? Will you charge any amount for such margin, if so how much?
Soumya, check this post.
Thanks
If i have bought Nifty options today n sell the Options next day. Can i use the amount to take carry forward Option positions ?
Per NSE the Options are settled on MTM basis so i should be allowed , although Pay out is next day .
Yes you can use it.
Thanks Nitin . But there is a margin penalty charged to my account when i squared off ITM Put options of 10000 Nifty of June series which was taken a day before n took fresh short positions. The MTM from squaring off long Puts is not considered for Margin calc
Yes, the systems allow you to take positions; but there’s penalty levied since the actual settlement of funds for the sell trade happens the next day.
From NSE website :
Option to settle Daily MTM on T+0 day
Clearing members may opt to pay daily mark to market settlement on a T+0 basis. The option can be exercised once in a quarter (Jan-March, Apr-June, Jul-Sep & Oct-Dec). Clearing members who wish to opt to pay daily mark to market settlement on T+0 basis shall intimate the Clearing Corporation as per the format specified in specified format.
Clearing members who opt for payment of daily MTM settlement amount on a T+0 basis shall not be levied the scaled up margins.
The pay-out of MTM settlement shall continue to be done on T+1 day basis.
Payout happens on T+1 ie to the Bank accounts , but for trading accounts its available on same day when i square off a existing position.
The T0 settlement gives the broker the benefit of being charged lower margins. Zerodha’s already clearing on T0 basis and we’re passing on such margin benefits to our clients.
When you sell options, Exchanges have to make a payout to the broker. Such payouts happen only on T+1 day for the F&O segment. As I’ve said earlier, you receive credit immediately thereby allowing you to make fresher purchases, but it’ll be reported as short margins to the Exchange since the settlement happens on T+1 basis.
Thanks Venu. When you say sell option , do you mean even when we square off the existing positions the credits can’t be considered for margin calculations..
When i Square off existing Positions I should be allowed to take fresh positions and the credit from the Squared off positions should be considered for margin calc. If i go for pay out of the same to my bank account it takes T+1 .
But why there is margin short fall charge when i SQUARED OFF my existing position , n could you share to whom this charge goes to — to exchange n Zerodha.
Yes, even when you sell your existing long option position, the credit from such sale is realized it on T+1 day as per the settlement cycle in India for the F&O segment. Reiterating, the system allows you to take further position when ou sell an existing option position, but such credit isn’t considered towards margin reporting.
The penalty is levied by the Exchange.
Thanks Venu. so the penalty goes to NSE account ? right ..
Yes, NSE in turn puts it into the investor protection fund.
Dear Sir,
Supposedly USDINR CMP is 63.2500 n i want to buy a lot @63.3000 pre determined price.
In LMT order if I predetermine the trigger price @63.3000 will it get executed immediately.?
If YES, what can i do to place a buy at a pre determined higher price than CMP.?
You need to use trigger orders. Use SL-M buy order with trigger price as 63.3000. Check the video on stoploss here.
why is the margin for a same type of scrip with same quantity at same price in Bracket orderis 20-25 times more than that of the cover order.. is it a techniocal glitch @Nithin sir??
Which stock is this?
Sir i am a new trader in zerodha and i have a problem in understanding the margins in bracket order
So i know that for cover order we get 2x margin i.e. 2*margin available on intraday
but for bracket order what is the margin policy
Suppose for allahabad bank we are provided 14x margin on intraday so thats 28x margin in cover order
But what will be the margin offered in case of bracket order and i get confused on the margin required webpage
Cover order and bracket order have same margin requirement.
Hi All,
Can you explain me MIS & about when Auto Square off in intra-day. i am starting trading in intra-day.
It is explained in the post above, suggest you to check the videos here: https://www.youtube.com/user/zerodhaonline/playlists
EQ:1344668 has violated margin limit by Rs. 8674 on all exch.
actually i want to place order of a company through some broker , i have 6000 INR in my account , when i buy a certain stock it displays the line //EQ:1344668 has violated margin limit by Rs. 8674 on all exch. please explain
what is margin, margin limit shortfall and total hold required
Hi Nithin,
First of all thanks for your today’s live Q&A session. It was really great and inspiring. You guided very well about the importance of risk management.
So my query is about the risk involved in stock futures trading.
In any worst case scenario, is there any chance of losing money more than that is available in my zerodha trading account fund?
If you are trading leveraged products, yes there is always a risk of losing more than the capital.
Lets consider the (worst) case of gap opening next day with double circuit (which was discussed before too). I have open position (NRML stock future) on today for overnight (with exactly required funds) and suddenly due to bad news like election result or demonetization, next day the stock future open negative with -15% to -20%. Obviously due to huge shortfall of funds, Zerodha will cut the position and there will no fund in the account and no open position.
Then what will happen? Will zerodha or exchange will demand more money?
Yep, whatever is the debit in your account, you will have to bring that money into your trading account.
Thanks Nithin for your replies.
Just want to know, if is it possible for any stock future to open next day with less than -20% ?
(Or any price band/circuit breaker is there while opening of a stock future?)
F&O stocks have no circuits. So they can move as much.
I just came across a statement on the NSE website, about the pre open session, that “The price band applicable for pre open session is 20%.” . So I think, any stock future will at least not open beyond +-20%, but later in the day can go beyond further. What’s your take?
F&O trading starts at 9.15 and doesn’t trade in pre-open. When market opens and hits 20% either ways, there is halt for a few minutes and then the circuit opens up again.
Account number RM3393. Please please please give margin funding for delivery in equities, atleast delivery funding only for companies that are traded in FNO. Intraday margin funding is too risky, same day must square of position.
Michael, soon…
“We are certainly going to launch the margin funding business We need to be sure if we can provide it through the brokerage entity or need to have a separate NBFC arm. Once we get clarity, we will get going,” said Nithin Kamath, founder and CEO, Zerodha.
THE HINDU…feb 23-2016……….???????
We just got our NBFC license last week. Took us more than a year.
happy news….
Hi Kamath,
Why Zerodha does have hidden charges and worst customer services.
I did complaint several times about my funds was not being displayed in backoffice Q portal yet no one resolved the issue intentionally.
But when I did a withdrawal request from commodity account then not only you had deducted the 9Rs. funds transfer charges but also you had deducted the 1.31Rs service tax. You had no where mentioned or updated to customer about such hidden charges. Zerodha had not updated my funds into backoffice portal and when I did requested the withdrawal then you had not only cancelled my money transfer but also deducted the Rs. 9+1.31 as funds transfer charges. Awesome worst and cheating customer services.
Also everywhere and to every customer Zerodha does tell that square off time is 03:20pm but when I tried to cover my position at 03:19pm then you had rejected my orders and did the square off yourself because of which I had to suffer with an extra loss of 3000Rs.-4000Rs.
Why do you keep such things hidden and lets customer suffer?
And when I asked about the same from your support then they starts talking about Policies & procedures about square off. Awesome worst customer support and services.
If I do talk about Zerodha policies and procedures then you had no where mentioned about Rs9+service tax charges anywhere. Is it not cheating with customer’s money? Is it not hidden charges you cost to your customer and your support executives are very confident in behaving the same with customers. Awesome and thanks for such good services.
Hey Tej, you can transfer funds using NEFT/IMPS and we dont’ charge anything. This Rs 9 is what the payment gateway service provider charges and we pass it onto the client. There are many people who transfer funds and then buy equity delivery without paying brokerage, so unlike other brokers who charge % brokerage to recover this PG charges, we can’t. It is Rs 9 plus taxes, it is mentioned here: https://zerodha.com/fund-transfer.
About square off time, it is best you do it yourself. If you let the system auto square off, you can’t get your exact price. Also best not to wait until the last min to square off these positions.
Hi Nithin,
Wanted to understand if the entire amount of margin (blocked due to future position or option sell position) stays with Zerodha or you have to provide that full margin to NSE on daily basis. How much of the margin stay with your bank? If yes, whether you can use that to provide margin relaxation for limited risk positions?
Soumik, the entire money is blocked by the exchanges.
sir in total margin its showing 24531. den for MIS trade should we have amount in acc. is 9820 ?? 40% of 24531 total margin is 9820 means???
If margin required for a F&O position is 25000, if trading using MIS you will need 40% of this or Rs 10000.
what is the difference between trigger price, limit price. when trigger price is used ?
Check this post on stoploss orders.
hello ! I am interested in using leverage provided by zerodha for doing intraday. There are few doubts concerning me.
1. Are there any hidden brokerage charges for using leverage on a stock ?
2. are charges same for MIS & BO,CO when i use leverage given by zerodha for intraday ?
3. how much risk on my capital should i take while using leverage ?
1. No
2. Yes
3. My advise would be, as little as possible.
Hi…if i got 50000rs in my account what could b the leverage avail for me to trade with nifty options intraday.
Hi
Does Zerodha provide leverage for equity delivery ?
Not yet, but on our list
a stock price is RS 497… i want to sell when it reaches Rs 500…where should i mention this Rs 500? In trigger price or in limit price?
Limit price
i was sent a retention statement from zerodha…what is it?
Aveek,
Check this link to learn more about Retnetion statement
Hii Nithin,
I am new to trading to trading and am currently using MIS option for intraday trading in equity stocks . please help me with following queries.
1) Are there any charges levied upon trades made using MIS for intraday(like any interests or penalties) ?
2) Is there a limit for number of times i can trade using MIS in a particular stock in a single day OR max number of intraday trades i can make in NSE/BSE?
3)Are there any rules like maintaining minimum balance and such(like in F&O margin trading) when trading in equity stocks using MIS?
Please Reply 🙂
Hi Mukesh,
1) No, apart from brokerage & other taxes/charges.
2) No. There isn’t any such limits on the number of intraday trades.
3) No, no such minimum balance you’d require to maintain separately for Trading F&O. You could use the funds in your Trading account as margins.
a mutual fund scheme says minimum investment is RS 5000. What does that mean? If I select this scheme for investment for 6 months, the minimum monthly SIP is Rs 5000.. Is it so? Or the total SIP should sum upto a minimum of RS 5000, means monthly SIP would be RS 834 per month?
Aveek,
That’s only the first/initial investment amount. The SIP or your futher investements can be changed and needn’t be 5000. You can look that up under the plan itself.
Do we have any way to know how much margin is available for each scrip in mis?
please add color red/green in moving average line
when ma down red color show
and when ma up green color show
please
please provide pdf version of module 9 in varsity…& there is no updation of module 10
Aveek,
The PDF will be up soon. Module 10 will be updated in some time.
Hi,
Today I see Margin used as -156.55 what does this mean? 156.55 is was my today’s profit, so I expect that 155.56 will be added to my total Account value and by when this get added ?
Hi Amit,
If you’re trading at Zerodha, Intraday profits from Equity segment will be credited to your account instantly. You can use those funds to buy securities, but to be able to withdraw the funds, you’ll have to wait until T+2 day, since they get settled on T+2 day.
hi,
i would like to know how much margin required for my this hedged position.
bank nifty sell 22800 ce and buy 23300 ce
sell 22800 pe and buy 22500 pe
Hi Dhanendra, you can find out the margins for your hedged position here. You also get a margin benefit.
Not able to find code for Nifty Options. Can anyone help, I am a new member
Hi Prasad,
If you’re looking at adding Weekly Bank Nifty Options, check here
Also check this link
Hope this was what you were searching?
Hi,
I have a doubt. If i trade in Equity Futures under NRML option that full money and not in MIS. If i but one Lot of Any Share (for Eg : 85000 cash for one lot) under NRML and keep it with me overnight and i will get some profit as per the next days and i go head and sell the lot. Now will i have the amount (i.e 85000 in my account or i will get that along with the profits. And when will i get the profit amount in my trading account. Please provide with an update.
Hi Akshay,
Waiting for your reply
Sridhar
You will receive your Normal margin blocked for your future position when you close your position. Profits/losses are settled on a daily basis. say you make a Rs.2000 profit today, then it will be credited to your account today eod. If you make a Rs.1000 loss the next day, then this amount will be debited next day eod.
I came across a term called as “cash account” & “Margin account” ?
According to me, zerodha offers an account which can be used as both cash account as well as margin account. There are no seperate margin accounts being offered by zerodha. Am I correct? Can you please clarify?
Hi,
Cash account and Margin account essentially are the same. That’s correct.
I wanted to buy GSFC for which i was looking on zerodha margin calculator as I was planning to place a BO. But unfortunately i was not able to find this. Is that there are only limited scripts on margin calculator?
Hi Amit,
It’s showing up fine. Check here.
Under Segment > NFO >> GSFC
where is the relative strength chart setting? plz guide me
Are you talking about compare? It is just below the scrip name that appears on the top left of the chart. Check this post.
I have holding of 5000 in VikasWSP of Group:XT and fund of 5 Lac. I am not permitted to put Sell order of say100 shares if one Buy order is existing in Kite. I have to cancel Buy order, place Sell order and then again place Buy order. Similarly I am not permitted to put Sell order of 100 shares in whole trading session if any Buy order is executed for that scrip. It is not fair to restrict on Sell order if enough Qty is available as holding. This restriction is not applicable on T group shares.
If you have previous holdings, buy any stock during the day and try selling the stock, it first considers from your purchase transaction of the day. Since Intraday is not allowed in XT category, the system doesn’t allow you to sell; that’s the way it’s designed. We are speaking to Thomson Reuters our vendors to get this fixed. Will keep you posted.
suppose i want to purchase 10 shares of Rs 500 each. So I need to invest Rs 5000 for CNC . If I want to proceed by MIS then I need to have Rs 2500 minimum in order to avoid margin usage charges. Is this the case? Or can I proceed with Rs 1000 also? Actually I was sent a pdf from zerodha saying “Margin status(Balance with member/due from client)” Rs 1400 .. I was shocked
If you are using MIS, there is no interest charge as you are using this leverage only for intraday. If you somehow end up using more than Rs 5000 using CNC then on that excess there will be some charges. With MIS with Rs 5000 you can depending on the stock buy for upto Rs 1lk. I am guessing this Rs 1400 is either your P&L or value of stock you bought yesterday.
Sir Can you tell me that if I want to buy 500000 lakh share at price of rs 200 normal then is it possible and can I use same for intraday? And any limitations there? Actually when I’m going to buy that share but it’s showing that limit set to 10000000 current is 90000000 rejected.. Is it possible?
I didn’t get your question. To buy using delivery option, you need to have the full amount.
Sorry for that. Let me explain my question.
Let us take ACC cement for example. With margin intra-day trading (MIS), we can buy ACC shares of around 897 with 1 lakh of rupees as ACC has 14X margin (14 X 1 lakh=14 lakh total money) covered by Zerodha.
Money= 1 lakh.
Shares to buy = ACC
Share rate = 1592
So MIS (intra-day) shares that can be bought for the day = 897 or 879 (roughly)
I wanted to know if Zerodha will cover only certain amount. Like if I invest 50 lakh then with share like ACC, I will be able to buy (14 X 50 lakh) worth of intra-day (MIS) shares. I wanted to know if amount like 50 lakh will still be given same margin by zerodha? or will it be discarded from your side because it is a big amount & not covered under your margin trading? Or is there any limit set on the amount by Zerodha that it won’t cover above it?
Just wanted to know upper limit beyond which zerodha won’t accept margin orders.
Ah no, we don’t have any such limit. You can put any amount and take leverage that we give for MIS.
Is there any amount limitation over margin trading in equities? I mean is there any upper limit on amount of money that can be invested via margin trading? Like 20 lakhs or 50 lakhs or 1 crore ?
Sir,
I have done some option trading with my account. I waited till my expiry date for some option stock then, On final day I am not able to sell it since its price is 0.On next day that F&O share does not showed to by account. But till today in every margin statement it shows that amount. Please clarify.
I am guessing the option would have gotten expired worthless. Best if you send this to [email protected].
Hi nithin
Also wanted to know how to get instant trade notification by SMS. People who are working Wil be useful if they get notifications once of their order is executed.
Hi nithin
I want to know how I can get extra leverage for commodity. As of now 2x provided for MIS, how to make it 4x or 3x other than Co or bo.many competitors such as astha, wisdom, kurinji etc are providing. I don’t want to leave zerodha for this reason. So
The leverage is at the discretion of the RMS desk, they assess the risk on each contract before deciding the leverage. There’s an old saying ‘Leverage is a double edged sword’. You may feel that you’re at a slight disadvantage by virtue of being charged higher margins, but if you look at it holistically, this should give you more confidence since there’s no risk for the capital you’ve employed.
What is different between Total value and free cash in zrodha anroid application. I had made fund transferred of 5500 to zerodha ac. Now it shows Total value- 5500 & Free cash- 11000. What its means ?????
Post market closing, we run a series of processes during which time your balance on trading platform may not show right. Suggest you check Q, your backoffice post 7:00 pm to get an idea of the available funds in your account.
Hi,
I would like to clarify my doubts in Futures settlement process. As far my understanding , there are two settlement process are there for futures trading. 1. M-T-M settlement 2. Final settlement.
could you please kindly let me know which process would be followed for futures cash settlement, how does these settlement process gets differed during the Order execution.
Till expiry of the contract, your account will get debited/credited with MTM settlement against the settlement price of the contract. On expiry day, if you continue to hold the position, the final settlement happens against the final settlement price. All Future contracts are cash settled.
Hello,
If i short sell BANKNIFTY option, what is time period can I hold?
Is it must that I have to EXIT that position on intraday? OR Can I hold for 2-3 dyas?
What is margin required for that??
You can hold any Future position till expiry as long as you have sufficient margins. There are weekly expiry contracts and monthly expiry contracts on Bank Nifty. You can find the margins here. https://zerodha.com/margin-calculator/Futures/
I didn’t know I will be sent a margin statement bill.. I was entirely unaware of this fact that I will be charged for using margins. This is stated nowhere
You are not charged for using intraday margins. Only if you use it overnight and that too only if you don’t have atleast 50% of margins in cash. Check this.
I didn’t I will be sent a margin statement bill.. I was entirely unaware of this fact that I will be charged for using margins. This is stated nowhere
I want to buy some shares of a company and want to hold for more than 1 day and sell whenever I like to. Is that called delivery equity? I have to use CNC then? MIS cannot be used isnt’t it? OK how to execute? I have to select CNC, enter the number of quantities I want to buy, then MKT then by clicking more options REGULAR then DAY?
Yes delivery equity, yes CNC. Yes if you buy as CNC, you have to sell as CNC. Suggest you to go through this playlist: https://www.youtube.com/playlist?list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1
Have been doing intraday trading on Zerodha platform for the last 6 months and am quite satisfied with the excellent services rendered by Zerodha.Now I want to start from tomorrow ,the Delivery trading also along with intraday , starting with Nifty17 APR futures.How much amount need to be deposited in Zerodha trading AC/Demat account to buy/sell Nifty futures (One lot of 75)considering span+exposure margin for delivery futures trading? Is this span calculation applicable for Nifty futures also or shall I have to deposit Rs 6,96,150/-being 100% amount in demat account?
Around 9% of 6.96 lks or around 55k. Check this margin calculator: https://zerodha.com/margin-calculator/SPAN/
Can I use the Margin Money to buy Commodities until the expiry date or future or do I need full cash to buy Commodities to hold the order until the expiry date or future?? If the Margin Money is used then until when do I have to pay off or when does the order gets square offs. Please advise
Margin money is enough to hold till expiry. If there are losses in between, you will have to transfer that to your trading account.
Thanks Nitin for the update. I have been trying to place an order to hold it until the expiry date for commodity however every time the order is getting cancelled without any reason mentioned & the orders Status reflects as cancelled. Can you please help me out with the link to watch the video on how to place an Normal order & hold it until the expiry date.
Currently all orders are allowed till end of day. Good till date or Valid till cancel orders not possible.
Does that mean that order can only be placed for a day & cannot be placed &hold until the expiry date??
Yeah, all pending orders get cancelled end of day. You can place a new order again tomorrow.
In intraday futures trading, I wish to know the amount of BO/CO margin that was required on a particular day of expired series. Is that possible?
Not possible to find out for a particular day. Only current day.
1) Intraday futures trading: in margin statement, there is no mention of margin as such. It only shows the funds position. How can I know the margin that was blocked / used for trade out of funds available to my credit and squared off subsequently?
2) Is there any information on Zerodha about accounting for derivatives?
1. Margin requirements are shown only on end of day basis. Reports don’t track intraday margins that were blocked. You can see it only live.
2. If it is regarding taxation, check this: http://zerodha.com/varsity/module/markets-and-taxation/
Margin Available Rs 1736.5 . Payin is RS 1500 Realised Profit Rs 236.5 Can’t I Withdraw my Rs 1736.5? When I am clicking Withdraw Equity Segment is showing account balance Rs 0.
Aveek, settlements in India take T+2 days for equity and T+1 for F&O. So if you sell seomething, you can withdraw only after 2 days.
OK Sir got it. Actually I bought 11 shares via MIS . Payin was Rs 1500, I invested Rs 1073. Made profit of Rs 236.5. Margin Available is Rs 1736.5….Account Value is showing RS 0….Margin used is showing -236.5 in red colour. I am worried about this
Aveek, the balances will get updated now. You’ll be able to place a withdrawal request until 9pm.
In intraday futures trading, I wish to know the amount of BO/CO margin that was required on a particular day of expired series. Is that possible?
Zerodha margin calculator is showing With cash availability Rs 1000 I can buy 11 shares of Rs 1374 per share of XYZ company through MIS . Now after login in kite how would I buy? I clicked Buy(B) option of that XYZ company , then I selected MKT and MIS, then should I increase the QTY upto 11 manually? and then finally click on Buy?
Yes, select MIS and increase the buy quantity. Suggest you to look at this playlist: https://www.youtube.com/playlist?list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1
I need to understand that I have shares worth around 2 crores If I pledge them and trade in futures of Nifty and bank nifty do I need to provide for cash margin also .If I utilise the pledged margin only do I have to pay any interest?
Check this post, has complete details. You need to have 50% of margin in terms of cash for overnight positions. Whatever you are short of, there will be an interest cost.
I have been thinking of switching from ventura to zerodha.It took me several months to get familiar with Ventura software .Is the Zerodha trading software different from Ven.I tried to see it on You tube but could not decide.
Quite simple and yet powerful Kite is. Check the video https://www.youtube.com/user/zerodhaonline/playlists
Believe me…KITE is the best. Charts with technical indicators. Very simple and easy to understand. The best part…its lite and very very fast.
Since the stocks in our portfolio are placed with exchange and margin provided against them,then why 50% cash margin requirement and interest charged on that in case cash margin is not provided.
When Exchanges block margins from the broker for positions taken by clients, they take a maximum of 50% in the form of collateral and the remaining has to be in the form of a cash. If you don’t deploy cash for your positions, then the broker has to deploy his own working capital to meet the margin requirement and hence the interest.
In margin calculator there is one “Span” and exposure margin and then total what is the meaning of this?
https://tradingqna.com/t/what-is-the-span-margin-exposure-margin-and-total-margin-in-options/9209
Is there any limit on Nifty and bank Nifty in F&O in case the margin is available alsowhat about the overall exposure .
What is the maximum quantity of Nifty and Banknifty for carryover in F&O and is there any overall exposure limit?
Suppose I am adding Rs 1000 in my trading acc. Cash Available is Rs 1000 . Stock price Rs 1267.70 . Number of shares that can be bought is zero by CNC. But by MIS (14x) number of shares that can be bought is 11. Suppose if the stock comes down by 8 points. Then loss made is Rs(8*11)= Rs 88. then what is the case now? Will I get back Rs 1000 – RS 88 = Rs 912. Or will I have pay back to zerodha? If So then How much will I have to pay back for the above example?
I want to get clear idea regarding MIS risks by this example
You will get back Rs 912. At the end of day, the charges of the trade will be debited from remaining Rs 912.
Hi,
Can i do intraday without using any margins. What to select CNC or MIS. Please guide me.
Regards
Sivakumar.k
Check this video playlist https://www.youtube.com/playlist?list=PLkxTRam6E2V-okv6gwQlt6dLTsn0v6CD1
Dear Mr. Nitin,
Up to which time can I make MIS orders. Why can’t I make orders after 3.00 pm. ?
MIS orders can be traded till 3.20pm. Check this playlist and video on order placement.
Sir,
I have 3000 ITC shares. These shares are highly liquid with trading volume more than 50 lakhs everyday.
These shares can be deposited as margin collateral for F&O NIFTY options writing. The idea is to make use of premium in these contracts.
Do I deposit with you any cash margin at front end for initiating a trade.
Do you provide loan against the shares for margin funding. If so please let me know the charges.
Thanks.
Check this post, explains in detail.
Sir, I am new in this. I had just opened an trading account with zerodha. There is something called MIS. Can I sell on my own using this feature? or this will be auto squared off? And most importantly what if there is a loss even after leverage? I am new to this, can I get recommendations regarding what to buy/sell?
Aveek, can you check this youtube playlist. Yes you can sell on your own using MIS. It is an intraday product, so it gets squared off by end of day. We don’t really give recommendations, but you can learn markets from here: http://zerodha.com/varsity/module/markets-and-taxation/
Thanks for the link sir. Its very useful.
Suppose I am adding Rs 1000 in my trading acc. Cash Available is Rs 1000 . Stock price Rs 1267.70 . Number of shares that can be bought is zero by CNC. But by MIS (14x) number of shares that can be bought is 11. So, if the stock rises by 20 points. Then my gross profit is Rs(20 * 11) = Rs 220. Is it so?
Yes, you’re right.
Thanks for the link sir. Its very useful.
Suppose I am adding Rs 1000 in my trading acc. Cash Available is Rs 1000 . Stock price Rs 1267.70 . Number of shares that can be bought is zero by CNC. But by MIS (14x) number of shares that can be bought is 11. Suppose if the stock comes down by 8 points. Then loss made is Rs(8*11)= Rs 88. then what is the case now? Will I get back Rs 1000 – RS 88 = Rs 912. Or will I have pay back to zerodha? If So then How much will I have to pay back for the above example?
I want to get clear idea regarding MIS risks by this example
Please let me know whether Zerodha offers the possibility of buying and selling options on Commodity Futures. If yes, how can we set it up?
Currently no commodity options available in India, when it does we will offer.
Are commodity options available now in India ? If yes, what are the products ?
Yes, options are available on a few commodities. Check out the most active contracts here.
At the end of day If could not square off, Are there additional charges for auto square off done by zerodha?
Currently no, but we might introduce this soon. Squaring off from our side utilizes quite a bit of our bandwidth.
hello, i want to be a business partner of Zerodha, please let me know the process to become an partner. looking forward for your concern.
Can you send your contact details to [email protected]
Do not fool people by deducting call & trade charges, when I have not called your office at all. If you want monet as brokerage, please take it by increasing the brokerage. This is LOOT.
Hey, Mahesh.
Can you please send an email to [email protected], we’ll have this checked.
will we get bracket order or cover order for other stocks in nifty 500 ? other stocks will we get intraday leverage ?
please HELP.
The list is increased/decreased at the discretion of the RMS team. We’ll make sure to update the list here: https://zerodha.com/margin-calculator/BracketCover/ in case there are any new scrips getting added.
hello sir am confused to intraday limt can you tell me full detail
future and equity…..??
thnkas
If you trade using product type as MIS while buying/selling stocks, you can trade for a lot more than the money in your account. This is also called leverage, and is allowed only for intraday. Check this calculator: https://zerodha.com/margin-calculator/Equity/. Similarly for futures.
Hi,
I want to know if we Buy a Stock in Intraday (without any Margin) can we also take it to Delivery.
Yes, you can do position conversion to CNC.
HI,
Suppose if one has used all his margin in a single intraday buy order and there is no available free fund to execute a sell order ,what will happen then . except CO or BO order where a stoploss in both case and sell order in BO is automaticallly placed ,what happens in all other MIS trades.
If you have already bought, no margin is required to exit this position. You can sell without any need of additional margin.
The margin we get on mis trades are these margin chargeable…I mean is there any intrest to be paid on margins used in MIS TRADE
No charges on this.
Can you please elaborate on this
This credit is available for you to trade intraday, but there might be a short margin penalty applicable if you carry forward positions using this non-realized profit
Does it mean that credit of sale can be used only for intraday trades until it’s received (ie T+2, or T+1 As applicable) ?
Yes, you’re right. Whenever you carry forward positions, we report margins to the Exchange as part of a regulatory requirement. Only ‘free & unencumbered’ balance can be reported. Intraday profit isn’t realized, although your account balance goes up. It gets settled on T+1 or T+2 depending on whether it’s a F&O profit or an Equity profit. So if you’ve used Intraday profits towards a carry forward trade, such Intraday profits will not be considered towards margin reporting, so you may end up paying a penalty of the short margin reported.
Sir incase i bought future means how i calculate the margin Amount in Zerodha?…
You can use the calculator: https://zerodha.com/margin-calculator/SPAN/
are you going to launch online trading feature through website in future
We already have, have you checked out Kite?
Please clarify this confusion: Yes Bank has a lot size of 700. Now for Intraday If I buy 700 Yes Bank Equity I am required higher margins, than If I but Yes Bank 1 lot(700) in futures for intraday. Why so? Is there any advantage with intraday trading with 1 lot of Yes bank futures than 700 share of yes bank equity?
Margins for trading futures are lesser because of higher liquidity and hence lesser risk.
Dear Sir,
If we hold shares in Demat account with zerodha , why are we not given margin for Equity Trading (Intraday and Delivery) this is very much needed so that we can leverage and Account holder can pay in exchange prescribed timeline of T+2 ( Clearing settlement)
We will start this feature in sometime.
Dear Nithin, Request you to please enable this ASAP. Also how can i connect with you ?
regards
Aashish
[email protected] or right here on zconnect
Does Zerodha have an option of keeping your security holdings as a collateral?
Yep we do, check this.
In Kite when I put LIQUIDBEES in search there are 2 options, R Shares Liquid Bees (traded in both NSE & BSE) and Goldman Sachs Liquid Exchange (traded in BSE only).
I ended up buying R Shares Liquid Bees by default. Is there any opinion on which one is better? I get a feeling I’m not getting better returns with R Shares Liquid Bees, in fact for the month of Jan 2017 I still haven’t received the units.
It is the same, Reliance bought this from Goldman sachs. Bse has still not updated the new name. Units can take time to credit to your demat.
Hi Kamat, i am new to options trading. my intention is to earn income on the stocks i am holding by selling puts/calls.
For example, i have 700 (1 lot) HCLTech stocks in delivery. Is it possible to use them as margin instead cash? if yes, how do i do that?
Yes, you can pledge your HCL stocks. Check this post on how to. Also check out http://zerodha.com/varsity/ to learn on trading options.
BTW, Nithin, I have one small query which is of a slightly different topic. As you might know, the price of Kushal Tradelink has been falling everyday, and I had bought them at Rs. 597.95. However, I am not being able to sell them lately, and I have suffered a huge loss. Can you please tell me how to go about it? It’s going to fall even further. I am a student trading with little capital and my parents are chiding me for the money lost now. 🙁
hmm.. Sayan, unfortunately nothing you can do to sell if stock hitting lower circuit.
So can I place an order to sell those shares and can they get triggered if trading resumes for the day? I have tried placing a sell order at 9 AM sharp, but it didn’t work. 🙁
you can place a limit order to sell and hope it gets hit. But no guarantee on this, everyone seems to be selling this stock.
Can I trade solely on nifty value and what is the leverage being offered to trade nifty,eagerly waiting for ur reply sir
I guess you are saying you want to trade Nifty futures. Yes you can, leverages are usually between 10 to 20 times. Check this calculator: https://zerodha.com/margin-calculator/Futures/. I’d also suggest you to learn F&O first here: http://zerodha.com/varsity/
I am new trader.What is “Margin Available”, “Margin Used” and “Total count value”.What is the meaning of -(Minus) “Margin used”.After my trade total trade amount started appearing in “Margin Available” can i use the same for the CNC NRML trade immediately or the next day.
When you make a profit for the day, it shows as a negative margin used. As soon as margin shows under available, you can use for either CNC or NRML.
Also I’m using KITE mobile app. when I go to buy page I see these.
May I know the meaning of these, which should I select for intraday.
MKT
LMT
SL
SLM
The link margin calculator not able t operate in mobile.
Is it not compatible t work in mobile
Dear Team,
This link – https://zerodha.com/margin-calculator/SPAN/ – doesnt have BANK NIFTY weekly expiry margin details. Am I missing it somewhere?
Yes, currently the weekly doesn’t show. Will look at getting it on this soon. Btw margin required is very similar to monthly.
Thanks for the prompt reply! Gr8 service..
how can i get money from my zerodha account.
Go to Q.zerodha.com, click on funds and place withdrawal request.
Hi! I am a novice trader and have understood the concept of margin trading, but I have one query. I have around Rs. 4k in my account, and I used to trade stocks on margin everyday and make a profit of >Rs. 100 most of the time, but there were occasional losses also, unfortunately. My question to you is, do I need to pay any extra charge towards some kind of a contractual obligation for trading on margin? I receive daily margin statements via emails and the sub-total says “(4412.66)” in the last column. Does that mean that I need to pay Rs. 4412.66? Or something else that I do not know about? I have already checked out the article at support.zerodha.com/kb/faq.php?id=156 , but failed to understand it fully. Please help, I’m really very worried. 🙁
Sayan, you don’t have to pay that 44k. That is basically the money you used up during the day. With margin trading, you can use the leverage with just that 4k and trade as much. There are no extra charges.
Thank you so much for your reply, sir! So that means that with the Rs. 4,000 that I have in my trading account, depending on the margins available for specific stocks, I can make as many trades as I want on any given day and I do not need to worry about any extra charges, right? I actually got scared because I had received a margin statement yesterday, and I didn’t understand what the negative balance meant, which said that “Margin status: Balance with member/Due from client” for BSE EQ is= -4412.66, and the “Sub Total” shows= (4412.66), and I had checked out the article at support.zerodha.com/kb/faq.php?id=156 which says that if the amount is in brackets, I need to pay it to Zerodha. That is why I got so scared and thought about cutting down on my trades. 🙁
Sayan, best you send such account specific queries to [email protected]
Sir, First Off all Very Very Thanks for Great Service and Bestest Best Platform For Trading.
I have Used more than 3 Platform but No one is as Great as Zerodha…..
My Question to you is- What is Auto Square Off time Of Cover Order For Mcx Crude.?
Thanks Ganesh, around 25 mins before closing of markets (so currently around 11.30)
hi
can liquid bees be used as margin for trading commodities?
if yes, what amount of mtm is required in commodity account?
No, can’t be used.
Suppose i short stock futures for 80K Margin under NRML. Till when will the system allow me to hold the poistion if at all i’m making loss in this trade? Is it till 80K loss or 40K loss? When the auto square off is initiated by RMS?
Thanks.
In 80K there would be SPAN + Exposure margin. You need to have minimum SPAN margin, if you don’t, positions could get squared off before end of day. Otherwise there is an exchange penalty.
Hi Nitin and Team,
I am very surprised with Gold Petal price today and have few very important questions.
Gold Petal Price is trading at about Rs. 2740 where as the Gold Petal Stop price in Mumbai is Rs. 2922 (as per MCX website)
Infact Big Gold is also trading at around Rs. 2840 (Rs. 100 more? WHY?)
So, assuming there is no change in price from today till 31st Jan 2017. I am assuming That I will get a profit of about Rs. 180. Is my assumption correct?
I know that Zerodha doesn’t support delivery. And I don’t need it. So, I understand that Zerodha will do auto square-off at some point? Is that correct and when will that be done?
Please reply, I have bought some Gold Petal, hope I have not gone into some uneducated trap. I also checked MCX historical prices, and Gold Petal has been about Rs 50 to Rs. 80 more than Big Gold. But today it is surprisingly Rs. 100 lower?
Please help me understand.
Pankaj
Pankaj, have answered here.
Please check this link is not working, we need access for this answer.
[…] BO (Bracket), and CO (Cover) are intraday products auto-squared off before end of day. Check this post for our margin […]
Nithin, One question regarding sell first and buy later.
Does margin required for Sell and Buy both for the same script on the same day?
Suppose i am planning to sell 500 shares of ABC and margin required for it is 10,000. Now I have only 10,200 in my account. So i will be able to sell those shares. But before end of day, when i move forward with Buying those shares again (through intraday/MIS), that will also required margin while buying?
Margin will remain on both sides. If you have already entered a position, you will not need any margin to exit them.
Can we short shares other than 150 specified for MIS for intraday?
Jai, not for now. There were other requests, we are enabling it today. You can short all stocks, but with no leverage.
U provide margin for intraday equity. Is this margin available only for 325 listed stocks on this link???
https://zerodha.com/margin-calculator/Equity/
Yes
Do you accept Tax free Bonds, such as NHAI which are listed on NSE and are in the approved list as pledgeable for FO margin
Not for now ST
Hey there, Suppose I am trading 2 lots of usd/inr and my free cash becomes nil (Zero) what would happen then ? Plz guide me
Margins would already be blocked when you take the position. If the free cash becomes 0, then you’ll have to fund the account to cover for any potential MTM loss. Failing to do so may result in your position being squared off.
Hi Nithin, I am a novice options trader, excuse me if you find my suggestion naive. I see that for certain options strategies like “Sell In the Money Call and Buy deep out of Money Call”, the margin requirement for writing options is way more than the maximum loss that would be incurred, if the short position is never left naked. I understand that these are exchange stipulated margins, but inoroder to relieve the customer, from having to put in this irrational margin from his pocket, you can offer these option strategies as a package, with much lesser and practical margin requirements, pulling in the reamaining margin from a bank at a market interest rate which will be on the customer.
Exchanges require that all margins be held upfront by the client for any position he/she takes. As brokers, we’re required to update the availability of the margins in the client’s account to the Exchanges on a daily basis. Funds from banks wouldn’t qualify as client funds and a client is liable for both interest on the funded amount + penalty on the short margin reported. In that sense, it’s best to have funds in your own account.
In the Span calculator page, can you also mention the break up of the Span margin between the various factors like volatility, price of underlying, time to expiry.
That’d be difficult Arvind.
Nifty closed today at 8190. I was checking out the margin requirement when I sell Nifty Jan 8000 Call and Nifty Jan 8400 put today. I was expecting to get a Margin benefit, since I am selling both the call and the put and regardless of how high or low nifty moves in this month I would lose on only one front and would gain in the other, and I would be better off than when I sell only the call or the put. But I do not see any margin benefit. Can you explain why ?
The position you’ve written isn’t a hedge. There are potentially unlimited losses that you can make and hence no margin benefit is given. The margins are always calculated on a portfolio basis.
Thanks for the response Venu. I dint mean it as a hedge but as long as we keep those two positions together, your loss on one side will at least be partially offset by profit on the other end.
Anyway, I got the answer for my question from one of your earlier response to a similar question.
Sir, the Zerodha app is not working fine on ipad mini 4, also online site are showing some different content format compared to format showing in other windows system, scrnsys i will share to you by today evening through personal email id.
Its taking quite long for Zerodha to start margin funding (on EQ Deliveries). any expected date ?
We’ll let you know the dates shortly.
what will be brokerage charges :
1) for intraday buy and sell on option stock
2) if i buy option stock today and sell it 2 days later.
in this case is same in 1st case or higher.
also in kite and q- back office brokerage of each day not showing. how to see each day brokerage
1. Rs.20 per order.
2. No, same charges even if you sell it after 2 days. You can view the P&L report which gives you details of the brokerage.
It is December 28.12.2016 but no margin available for Currency usd/inr future for February 2017 and march 2017, since I am new to this currency sector can you guide me upto which month margin will be available ?
Margins are being given for Feb & March contracts. You can place MIS orders, BO/CO is available only upto the 3rd month contract.
But in the margin calculator there is no option for usd/inr February 2017 & March 2017 to calculate
during trading in MCX ,i found some amount is debited as Obligation margin .
pls explain about this .
i squared the position , but some amount is still hold up .
pls explain
Margins are debited against positions you carry forward. If you’ve squared off the positions, they get released. In the backoffice, you’ll see the margins released, once the trade process is done.
please tell me, how to do option trading step by step and what is the role of margin in option trading.
Everything on Options has been explained on Varsity here: http://zerodha.com/varsity/module/option-theory/
Why I am not able to pledge direct in Pi ? I tried it in Q but no success. It will be easier if you made it possible through Pi…
Currently it will not be possible on Pi. Can you send an email to [email protected] with your client ID.
Hell Sir, I have a basic question. Sorry, I am very new. If I buy MIS1000 stocks for a company using my small account balance(with the help of your margin facility) and incur heavy loss, Do I have to pay Zerodha from my pocket?
How do you give so much (close to 11X)leverage, I am just curious. Please explain. Thanks.
When your losses hit a certain % of your capital, positions will be squared off. In the event, that the position isn’t squared off and the account goes into a debit, you will have to bring in additional funds to cover the shortfall.
Okay, Thanks. I have another small doubt. If I have a small amount and I bought 5 lakhs INR worth of MIS trading with the help of your margin facility, there is no extra charge for this margin facility, Right?
No.
Thank you for the reply, If you want you can delete our conversations. I have taken a screenshot of this. Thanks.
Dear Sir,
Below are my queries:
1.) Suppose I have taken a buy position on a stock future on T day with a margin of Rs 100000 and square it off on T day (same day) with a profit of Rs 15000 in normal market segment (not MIS), when would my margin be released and when would I get credit of profit in my trading account.
2.) Suppose I incur a loss, say 15000 on my above trade, what would be amount of margin released and on which day.
3.) Suppose I have taken a buy position on a stock future on T day with a margin of Rs 100000 and square it off on T+1 day with a profit of Rs 15000 in normal market segment (not MIS), when would my margin be released and when would I get credit of profit in my trading account.
4.) Suppose I incur a loss, say 15000 on my above trade, what would be amount of margin released and on which day.
Requesting your reply
Thank You
1. Since you’ve squared off the position on the same day, no margins get blocked. So, the 1 lac is free for you to withdraw the same day. The profits you made in the trade (15000) can be withdrawn on T+1.
2. 15000 gets debited from margins on the same day and you’ll be left with 85000 in the account.
3 & 4. Margins get released on the day you square off your position. If it’s a loss, it gets booked on the same day. If it’s a profit, you can withdraw it on T+1 day.
Thank you Sir for your quick reply.
I further want to know what is the time taken to release the margins after I square off my position. Is it soon after I square off my position or by the close of trading day.
Further, Can I use the margin released for another trade on the same day.
Thank You
Margins get released instantly when you square off your position. Yes, you can use the margins to take further positions.
Dear Sir,
Same margine available for trading in Share and MCX at same time. or need to place separate margin for Share and MCX
You will have to maintain separate margins for Equity and Commodity segments.
if my margin used goes in minus then will it get cut from margin available ?
e.g. Margin available=10000
Margin used= -5000
Account value=5000
then what happens??
can i sell stocks more than i bought?
Negative margin implies that you’ve received credit.
Suppose if I want to purchase stock of Rs 100000/- and I have Rs 80000/- in zeordha account, can I purchase with CNC option. If yes then please answer another question that is “In how many days I can pay the balance amount without any penalty? ” What are the charges of AMC if I use demat service from other broker or bank? Do you charge If I ask query with the help of calling service, queries like IPO, buyback, mutulfunds etc.
Please answer my queries
Currently you need 100% margin to buy in CNC/Delivery. So to buy Rs 1lk, you need Rs 1lk in the account. AMC for demat is Rs 300. No charges for queries.
Hello
Can we place margin buy order under BSE for T+90 days in zerodha.
Not currently.
Hi Team,
Now you have MF platform to do investment in MF, so it is possible if I do investment using your platform and use this MF investment as margin.
Regards,
Vaibhav
Currently you can’t Vaibhav .
Are you planning to do in some time and whats the time line for the same.
Hi, how will the margin requirement be calculated for overnight positions for two legged credit spread positions? For example I will be Selling to Open Nifty 8100 Put Option 25 Jan 17 expiry, and Buying to Open Nifty 8100 Put option 29 Dec 16 expiry. I will be holding the two legged position for 1 month (30 days). Please note that the strike prices are the same, while the expiry dates are different for the two legs.
You can check this yourself on our SPAN calculator: https://zerodha.com/margin-calculator/SPAN/
Sir, I am trying to put a bracket order and error message is getting displayed stating my user id is not registered for BO. Kindly suggest what can be done. I am trying this in Kite.
Can you send an email to [email protected] with client ID.
What is meant by SPAN and exposure margin?? why will exposure margin be 0 in few cases for option writing?
SPAN is minimum margin exchanges ask brokers, below which penalty is charged by exchange. Exposure is additional margin over and above SPAN asked so that there is enough leeway for broker to avoid paying penalty if margin drops. If the risk is extremely low, exposure might be 0 on option writing positions.
Today I put 3 orders for one stock in cash &b delivery and I put a limit so after crossing the limit the order is executed. but when I do the same stock in 4th times in a single day then it is automatically rejected. I want to ask u why is it rejected bcz I have sufficient balance to do that .
please give me the reason ?
Didn’t understand your query, can you be more clearer please?
No margin for Berger Paints in equity or BO why is that I checked twice my trade was rejected
If it has hit circuit or extremely volatile in recent times, it would have moved out of leverage stocks. You can send a request to [email protected] if you want to see any stocks.
Sir,
1. I am facing problems with Kite regularly. My friends also complained the same. Is there a special reason?
Problems in loading. Especially it did not work in the forenoon on US election results day.
2. My margin statement which i received today shows Margin status balance as Rs.141,343. Kite shows free balance as Rs.223,ooo. Why is this difference?
3. Can I use margin for T+2 days for buying equities. If so, what should I do?
I deal only with delivery.
Thanks and best regards.
Sir No margin for INDIAN BANK I am surprised
3X for Indian Bank for Intraday. You can check margins here: https://zerodha.com/margin-calculator/Equity/
The margin requirement for copper has changed from 6% to 8% in normal order when prices started increasing what is the reason ?
Kuldip, the volatility has gone up significantly after US elections and demonetization news, when volatility goes up, exchanges increase the margin requirements.
Hi,
Today I just wanted to buy “Nilkamal” Stock but I have not given any margin, hence if I decide to buy this stock then I should I have all the money in my account?
Can’t you provide margin for other stocks that is not listed in the below link
https://zerodha.com/margin-calculator/Equity/
Suppose I want to buy 100 shares of “Nilkamal” @1600 that means 160000/- rs. must be in my account for MIS order? Please explain (Same is the case for stock – “TATAINVEST”)
regards,
Siddharth
Siddharth, we give intraday leverage on liquid stocks which don’t hit circuits. If you think we are missing out some stocks, you can send a suggestion to [email protected]
I have Liquid bees of 1 Lac. Now I want to buy shares worth of 1 lac. Can I sell Liquid bees and then buy shares on same day?
Yes
Hi Nithin,
I am trading actively with another broker and I only write options.I can understand from the blog that SPAN margin is required by exchange and exposure margin is the margin which exchange advises broker to charge. Is there any way(may be by blocking small percentage of capital from total corpus) by which we can go away with exposure margin and only charge span margin for writing option? If yes, I would be more than happy to shift my account.
Rohit, the one thing we haven’t done from the start of business is to compromise on risk to generate revenues. We will not be able to do this.
No Problem Nithin, I appreciate that. Right now I am looking out for higher ROI which can be increased by deferring exposure margin. I would really want to work with you in future as I liked the entire concept.
There are many stocks which are not mentioned in margin list( for eg. GTL), what will be the leverage for those stocks
If a stock is not on the list, there won’t be any leverage. If you think something is missing, send an email to [email protected], we will see if we can add them.
I am trading in nifty & Bank Nifty F&O in Ventura who provide holding margin against shares held in my a/c normally I hold position for a few days or upto expiry ventura charges interest on margin allowed.What is the position of Zerodha in this regard
You can do the same through Zerodha a well. Read more here: http://zerodha.com/z-connect/tradezerodha/margin-requirements/online-pledging-of-stocks-for-trading-fo
Once i have entered into an order how to i place an order with target and sl s that is one gets executed, the other gets cancelled.
if target is done, target gets covered and sl is cancelled.
Alternately if sl gets executed, the target order should get cancelled
You can’t place conditional orders since it’s considered an Algo product (One order getting canceled upon execution of the other). You’ll have to place 2 orders manually – one sell order, one stop loss order and cancel one order manually when the other gets executed.
Sir
I have question on Intrday margin for BSE CASH stocks ( or NSE cash stocks which are not futures).
For example what would be intraday margin % for these stocks NILKAMAL,POLYPLEX ? Can these placed at Cover Orders ?
Please suggest
Thanks in advance
You can find the list of Stocks on which we give Intraday leverage on this link here: https://zerodha.com/margin-calculator/Equity/ The calculator allows you to compute the number of stocks you can buy on leverage.
On the same page, click on BO & CO to know the stocks which are eligible for BO/CO.
Thank you Mr Venu.
I tried the page of Equity margin calculator. But when i typed these stocks for example NILKAMAL, nothing was listed below, so i could not find out the margin. Please help me here
If you don’t find it in the list, then no margins are given against such stock.
I have an existing account with zerodha and its very difficult to find the weekly option contract details like call and put etc BANKNIFTY OCT 17500 but its not providing the contract details of weekly expiry
On which platform, kite or pi?
Shall I convert an intra day position(Equity) to delivery or hold it for few days ?
Yes you can, provided you have enough funds.
Hello Mr. Nithin
It took mr little more time to start my trading with Zerodha but now I’m big fan of Zerodha because of all the information, real time graphs provided by Zerodha which gives satisfaction of write entry/exit.
If you see on brokers bolt, there is option available for carry over positions in futures like if you set a limit that your carry over position should be 2%
Moment your current position comes into bracket. your existing contract is sold and new contract is bought by system.
Can you think of adding this unique feature in Zerodha. I’m sure you will be the path maker for this idea.
Do let me know
A little confused here, could you please explain? We d definitely provide you such facilities, provided they’re within our scope.
When will the zerodha provide margin lending for delivery based equity in CNC type. You had mention this earlier in site, it would soon start this provision
Soon pradeep. We’ll keep you posted.
can you provide the tentative time line, coz, This provision i am expected from zerodha from 2 , 3 years.
It’s a little difficult to give you the tentative date at this point of time. We’re working on providing you this facility.
I have two queries,
1. I have given the contact details in referral section i my login to open account for one of my friend. Do i have benefits for referral.
2. In my log in page i am able to find 60 days brokerage return, Can you explain in brief.
1. Yes, if he opens the account using the same contact details you have mentioned.
2. Check this: https://zerodha.com/60-day-challenge
can i trade using zerodha in usa markets , from india?
No
RMS has squared off my positions without informing me.
Had 9 lakhs fund value and was holding 14 lots overnight NG.
Today ( Sep 22nd 2016, , thursday morning), converted them to intraday to avail margin for other trades.
was holding no other trades.
When i logged in in the evening , found to my dismay that all 14 NG lots haven squared off at 212 ( giving MTM of -40000)
also my sell orders of 1 lot each at 213, 214 and 215 have been cancelled by RMS
Also my buy orders of 1 lot each at 208, 207, 206 also were cancelled
I had been holding NG since 4 days and today evening NG went to 206. I should have made a profit of rs 120,000)
Add to this the -40000 due to RMS sq off, that makes it Rs 160,000 less in my fund value
Who is going to compensate me with the loss
Regards,
Syeda Huma firdose
i am looking forward to trade with zerodha, but such posts puts question mark on RMS, as why those positions were squared off. There may be some technical reason behind it, a clarification would be great.
My quick query.
Assume i bought cipla quantity 1000 in April 2016. and for exempted long term capital gain i must hold it for 12 months.
But my expected price arrived and want to freeze the price/profit,
If i sale future contract of 1000 quantity and roll it over till April 2017 and then square off all positions in future and demat in April and will realise my profit.
Do i do this?
If yes, then can i get benefits in margin for future? as i am holding the same quantity in my demat.
What you can do is pledge the CIPLA shares with us, use the margin from pledging to short futures. Check this.
Hi, when the Call/Put price moves beyond what could be covered by the margin amount, does Zerodha automatically square that option or does it demand the user deposit additionally Margin like Futures ??
If you are buying option, you have paid entire amount and hence we wouldn’t square off since there is no risk on us. But yeah if you have shorted options, it will work like futures.
Hello Everyone,
I have a question regarding margin requirement for future contract.
in case, i buy a future contract (normal type) with some Span + Exposure margin and after blocking my margin for (Span + Exposure ) i have some x amount left in my trading account. now after two days i make loss in future contract (loss amount is exposure+X amount in trading account) so my future position will be open or it will be auto closed.
Your free balance will get adjusted for the loss first. Only if you continue to make losses after that and your account value drops more than 10% of (SPAN+exposure) then it might get squared off.
Hi Nitin,
This is a question I’m trying to get an answer for the last 1 month. If I want to trade high volume intraday – Say I have 40 lakhs and want to trade 10 lacks in each call for intraday, then is it better to trade in equity or futures (wrt to liquidity)? Because at times, in futures, I’m losing price due to “impact cost”.
If you are trading higher quantities, futures is a better option. Yeah impact cost might seem more on some stock futures contracts. In equity it is even higher.
i feel the COVER ORDER for intraday is kind sham with only 4% of movement allowed for stop loss . it is easy to loose money with this feature than actual trade.
HI NIthin
I have taken position in F&O overnight against which i have pledge enough shares which cover bought span & exposure margin but still i m charged interest on this, when enquired i got reply that u need 50% margin in cash & on this it is charged interest
i have traded with other broker they dont charge any thing like this if i have shares that covers the margin
please clarify
Check this post Ashish. Exchanges allow only 50% of any margin from collateral. If you earlier brokers were allowing it without interest, I am guessing they were bearing the cost of providing margin by charging higher brokerage.
HI,
i am new trader , i want to trade in intraday . please inform us can we buy equity in intraday with limit price,& SL & target Price .( because your bracket system is good but limit stock).
Please suggest me another .
Thanks
B Shukla
You have to use MIS if you want to enter using trigger price. If you are using MIS, not possible to place SL and target at same time.
Hi,
For MIS product, do I need to have full transaction capital available in Margin. I thought for MIS as long as we have difference amount available should be fine (+1000 or -1000).
You need a portion of the position you are taking as margin. So if you are buying Rs 1lk worth of stocks, you will need 10k if you are taking position in a stock with 10% margin requirement.
Thanks Nithin. Is 10% margin applicable for all stocks or limited to few stocks listed in margin site at Zerodha. I tried one share today but got rejected so want to confirm.
Check this: https://zerodha.com/margin-calculator/Equity/
So it means only listed stocks at above site available at 10% margin, correct
Margins vary. If it’s 10X leverage, then margin required will be 10%. If it’s 4X, you’ll need to have 25% margins.
Problem is the list of the stocks are limited.
Hello Sir,
Your services are pathetic sir. I had submitted my Demat forms on 19th of August. It is 2nd of September and I dont even have the Client Master List. My demat account has also not been opened in 10 business days. I have called up 5 times in your Bangalore office to complain about the services and requested for a call back from your executives since it has taken them such a long time to open a demat account. After 3 call back requests I got one call back after but that call back also did not help since my demat account is still not opened. I really hope that people read this comment and not open demat account with you so that they dont have to go through the pain of your client services that I am going through.
Regards,
Anurag
Having this checked immediately Anurag, and sorry for any inconvenience.
Sir, are you planning to launch leverage on Equity Delivery (or, margin funding). as, its the only product i miss on Zerodha platform. and it’s very helpful to trade in non-fo stocks (when it needs to be carried)?
Yeah Mayank working towards it. Can’t give you a date yet.
Hi…. Sir I want to investment in BSE. Plez suggest me about your broking account.
And also suggest about classic account of Zerodha.
i want to know when you start the margin funding on delivery stocks,
l want to open the A/c in zerodha but due to this i am enable to open the a/c.
We’re working on providing you this facility. We’ll let you know once this product is launched.
Hi…How much minimum amount required for purchasing delivery stock?
100%
Hi…
Is it compulsory to span and exposure both margin are required for future trading?
Yes, exchange regulation
I have account in Zerodha.
I have position for TechmAug future, which expires on 25 Aug.
I want it to convert the position for TECHMSEP Future, how can I do that.
Regards
Bhavesh
Sell the Aug and buy september
Dear Nithin,
I am using zerodha platform to trade. I have few questions.
1. On expiry day, I write some OTM options as MIS. As anticipated, the options which I wrote were expired OTM only. As it is MIS order, will it be squared off at end of the day even If I don’t square off?
2. What is the margin here? Is it still 40% of exposure margin + span margin?
Thanks,
Lavanya
1. Yeah
2. Yes
Is there any MTM loss base square off for any product?
Not yet.
Hi,
I am new to Zerodha. I have a question regarding margin requirement for bracket order (BO) on PNB Future Aug25.
I looked at margin calculator and it shows margin required for 1 lot as 18,481 with current price (116.1) and stop loss at 114. I have about 33K in my account and no equity holding. However when i try to put a bracket order, it gets rejected with a message that reads sufficient margin not available.
Can you please help me understand what is going wrong with this order?
Looks like the bracket order calculator is showing lesser. Usually brackets require 25% of NRML margin, check this: https://zerodha.com/margin-calculator/Futures/
I am planning to open an account with Zerodha. I have been using Kotak Sec for 6-7 years. I mostly trade in Intraday Equity and Delivery Equity.
I was going through the Margin policies, order types on your website. Have few queries:
1) Suppose I want to place a purchase order without being sure whether I will carry it over or square it off at the time of purchase, what type of order should I place? I mean, I would like to square it off if I get good gain on the same day or else will take the delivery and hold. Is this option available with CNC order? If I buy something via CNC and sell it on the same day, will it be considered as Intraday?
2) In order to place a delivery order, I need to have 100% fund in the account upfront or can I wait will market closure and based on square off or delivery, settle funds by EOD?
3) Suppose I place an Intraday order / MIS – can later in the day want to carry it over, can I change instructions to make it delivery?
1. Yes use CNC, if you buy and sell during the day using CNC it will still be considered intraday
2. You will need 100% upfront.
3. Yes you can do position conversion from MIS to CNC
Dear Kamath Sir,
My friend has 3000 Equity shares of ITC. Current value is about Rs 7,50,000/- How much value credit he can take when he pledge the shares for F&O collateral.
He plans to write NIFTY options call/put where he will receive money to his account, and carry the position until expiry or up to a better beneficial level. His idea is to make benefit out of time decay.
He plans to carry positions with span margin level up to max level of 50% to the value of collateral.
Is there a need for depositing cash for margin?
Check this link. ITC has haircut of 12.5% so for every Rs 1lk, you can use 87.5k in collateral for ITC. Suggest you to check this post on pledging.
Yes Sir.
For 7.0 lac+ worth of 3000 ITC shares can you allow margin of Rs 3.5 lacs at 50%.
Call writing brings in money/funds on T+1 day.
In Call/ put writing actual risk is known only on close of the contract or on the expiry.
Will your system require cash before initiating a trade?
Will there be any cash requirement before closure or expiry of trade?
Pl clarify.
Writing call and put option for the same strike price provides for extra leverage as either of the position will be at risk at any point of time. Margin is taken on both positions.
for eg.
NIFTY 8700 CE and 8700 PE are written when the spot is @ 8710
On end of the day Spot is @ 8725 call will be at risk and put will be at benefit. We can see CE is always commanding a premium and PE is traded at discount. With sufficient collateral margin I believe the positions can be carried unto the expiry ( at this point premium is zero). I wish to take advantage of time decay value and benefit of the risk free trade i.e if call is at risk then put will be risk free vice versa.
Thanks Sir.
If I am not disturbing you I can send you a table with expected benefit of this trading strategy. I gained better with my earlier broker but most of the gains gone to broker as the brokerage was very high up to 4 or 6 points.
Exchange regulations stipulate that for all futures and short options if collateral is being used, atleast 50% has to come as cash. So if margin of Rs 1lk required, atleast 50k has to come in cash and rest 50 can be used from collateral.
About margin requirement for hedged positions, these are all determined by the exchanges. We have to block what exchanges stipulate us to. Check this answer.
Dear Mr. Kamath,
Greetings of the day.. Please go throw below link of my contract note and a PPT file. where it seems that some one have played from my money in zerodha team. When you will go throw the attached PPT. You will find the detailed explanation step with step with pictures.
Problem – My all intraday positions was clear till 2:20 PM and there was No pending order in Order book. (this is my habit to check admin Position and order book when I finish trading work of the day or I go out for some work)
I was back to my work. By chance I opened Kite and checked admin position and Found Nifty Future (-600 qty). At the same time market was flying. So I immediately tried to square off the position. (My loss was increasing every second).
I tried to square off it from Admin position, but could not square off it. The error massage was “Bracket order are exited from order book. So to square off that position I open the order book but there was no pending order to square off ……. (Snapshot attached). As my loss was increasing second per second, I called Zerodha support immediately, but there lines were busy for long. I keep trying, when some one pick up the call, I tell her about the problem, She tried to square off the position but She Couldn’t………
After Some minutes (After trying a lots of way to resolve this) , She Converted this position in NRML. then there was two open positions in admin position.
my doubts are – I Checked contract note, I am in Net loss of 36988 INR.
1. How I got this automatic (-600 nifty future position in my account). Is someone playing from my account in Zerodha ? As the order to short sell was neither in my software nor I found in contract Note.
2. When I caught this sudden position in my admin Position, Why I or Zerodha was not able to square off that?
can i get 1:100 times margin on highly liquid stocks based on risking specified percentage or amount of capital i.e. if trading loss exceeds a specified amount, the trade will be squared of automatically based on algorithms applied at your end.
No Sahil, 1:100 is a super big risk, no brokerage should ideally be taking it.
Sir,
Previously I have seen 37 times span for cover orders, now it is reduced to BO level. why?
Leverage for cover order depends on how far away from LTP is the stoploss. The closer the stoploss is, higher the leverage
I know that. My question was when the sl was within 5% there was a leverage of upto 37 times, now it is reduced on par with BO which is a max of 20.8 times. In such a scenario, CO is just a waste tool.
Equity leverage is upto 21X. Futures and Option is upto 37X. Can you tell for what scrip you were looking at?
Well i checked. so its restricted to futures. Options dont work with CO except nifty and that too is just around 2 times.
Hi Nitin
i have a query. please let me know how MIS works in below situation
lets say i have 30k in my trading account and no other equity/delivery/option positions. only 30k free cash and nothing else.
now i placed a MIS BUY order in a stock FUT. the order executed as MIS requirement for SPAN is 16k and Exposure is 14k.
now when will RMS auto square off my position if stock went down?
lets say stock going down and MTM is showing -14k. i.e exposure margin is gone. what will RMS do? it still maintains my order even though its MIS order and only has SPAN left?
lets say now stock is further going down and SPAN margin also becoming 0. what will RMS do?
remember the stock is falling slowly second by second.
thanks
Usually when the margin drops significantly below the SPAN, the positions are auto squared off by the Risk management software. What is significant depends on market volatility, days when markets are volatile we are stricter than normal.
Thanks Nithin. But does RMS allow the SPAN margin to become 0? does it allow the capital to become negative?
Thanks
It’s not in our interest to let that happen. But the markets are volatile and dynamic and there are chances that you loose more than what’s in the account, the odds of which are less though, more so because Futures is a leveraged product.
Want to know if liquid mutual fund like Birla Sun Cash Manager units could also be used as margin for FNO trades…
No Raja, we are currently not accepting mutual funds as collateral. You can pledge liquid bees.
You have the privistionof online pleadging want to know if you also have an unpledge or release pledge online request facility??
Yes you can unpledge online. Check this post.
When can we expect margin lending for equity delivery, what could be the interest rate structure for the lending and is their any separate documentaion for that..
We are waiting for our NBFC license, so yeah there might be a small documentation.
Dear Sir, I want some clarification from your side before opening account with you. I am always believe in Intraday/BTST/STBT Trade in Equity Cash or Future also.
I have little query is , If i have bought Qty /Lot for Intraday but unfortunately i want to transfer the same for next day or hold position for 2 days (T+2) so can you carry trade against my existing margin. If you will paid differential margin against trade ,how much amount you will charge.
Please describe me due to i am a new in mkt and not aware about rule of brokerage house.
For Example: My trading a/c Shown 40K of Margin and today I bought ONGC with 235 @500 Shares =Rs. 117500 against Intraday ,the same is buy against Intraday but due to some reason i like to carry forward for next day and i am unable to paid differential margin at that time, can you will carry my 500 shares for next day or squreoff on the same day and booked profit/loss.
Please clear my query
Thanks,
If you wish to convert an Intraday position into a carry forward one, you’ll have to have margins upfront. Without sufficient margins, you cannot carry forward positions.
It means you are not lending any funding against shortage of margin like other brokerage houses funding us and charged interest amount. this is very important to us to funding against shortages for 1-2 days. Now Trading culture is BTST/STBT , if we trade with this and certain amount short against margin, whole trade squreoff on same day due to insufficient margin.
Have you any other way to secure trade with BTST/STBT.
With margin, will take some time. We are working on it.
Hai,
You want carry position in F & O.
OK
F&O trades are essentially a margin trading system. If you are unable to pay for margin why you get into it. If you do not have sufficient margin please please please never initiate a trade. You always maintain twice the amount in margin. otherwise you are trading to loose your small capital and blame the brokerage house for your fault.
If you really want success in this market you must sufficiently invest money and time. only then you can be successful
Hi Nitin,
I wanted to understand when & how will be the positions will be AUTO SQOFF if in case i fail to hold my positions?
Lets say for today : SPAN is 95000, Exposure is 55000
Now lets say I am SHORT in market where I am facing LOSS since market is going UP.
Lets say I am short with 4 Lots @ 8150 and market moves high and high and high and I am still hopefull of crash of market soon.
Now, Lets say Market opens HIGH today and at the end of the day : @ 3.15 pm :
i can see below figures :
Margin Available : -25000
Unrealized Profit : -12000
Margin Used is 1,60,000
Total Account Value is : 1,35,000
On top of this, my portfolio loss over my SHORT positions is close to -ve92000
NOW, I WANT TO UNDERSTAND WHEN AND WHERE AND HOW WILL MY POSITIONS WILL SQOFF AND WHAT IS THE LOGIC BEHIND THIS?
Saurabh, there is no set rule to this. Risk rules are dynamic, they can change based on market situation. But generally, you will need to have atleast 10 to 20 % over and above the SPAN margin to hold a position overnight. So if the SPAN required is 95k, atleast around 1.05lks to 1.1lks.
Hi
I am a frequent underwriter on equities at zerodha. Couple of questions:
1) I wish to know if there is a way to pledge a stock / ETF holding as margin in a NRML trade (like while selling a OTM put option)? I know it seems to be allowed in MIS intraday trade with 40% haircut I think.
2) Is it possible anywhere to analyze how margin requirements would change if stock price falls when you are short a put?
Thanks,
Sagar
Do you give any research call for deliver and intranet trading ? what percentage of your client really making money in intraday trading ? there is a report that 90% of intraday trader loose money in market. is it true?
If I have pledged shares, can I use the complete margin from those for options/futures trading or I need to have some amount of cash to trade those?
Need cash as well. check this post.
I seen something different in pi marketwatch and in BSE and Moneycontrol screen
ITC at present on 1st July at 10.48 am in Pi shows -30.78% down where in nseindia.com and in moneycontrol it shows
3.37% up. So why it is difference?
suppose i have rs 20000 in my trading account and i wanna short one lot of nifty july 2016 call@8300. i get 3 times leverage means 20000×3=60000. will zerodha let me do this trade for intraday mis. i am new to option writing and looking forward to join zerodha club cuz i am done with paying all my profits in terms of brokerages with my current broker.
Yep, 2.5 times we give.
Hai Sachin,
Never try to pull Himalaya with a thin thread. You will always loose your thread. Try with a big rope.
You want to win provide sufficient margin. You must provide for EOD MTM, and the needed margin for your trades. otherwise you will end up in loss of your capital.
Ok!
Hi Nithin,
Trading with Zerodha for the last couple of months and happy with the services.
One query – when will you provide leverage for delivery trades? I think this is something that is there in the pipeline for quite some time. Also, please ensure when you introduce this facility you dont charge gigantic fees/charges like the full time brokers. The only reason I shifted to Zerodha is because of the low brokerage charges. Thanks.
Giving leverage for delivery trades should hopefully happen soon.
Hi Nitin,
I am very afraid just 2-3% move in market makes Zerodha clumsy, during Brexit my MIS orders were blocked without warning though I had full cash for the order. Kite charts weren’t loading when market started. There were frequent errors on kite. I try to trade during first 15 minutes and that time only there are glitches.
1. Is kite not able to handle volumes? Should I trade from Pi
2. Why were these orders blocked, instead they could be made 0 margin though that is also not desirable, 2-3% move is fairly common.
Being just a discount broker won’t help you should upgrade your servers to handle volumes and not block cover,BO etc.
It’s very disheartening I wasn’t able to trade the move due to this.
Tanmay, it was not about how much market moved, it was potentially how much it could have moved. Every brokerage worth his salt had reduced leverages around the world. I hope you understand that potential losses for a broker is huge, a few people could take big bets that can compromise risk for everyone else. We spend probably more than a lot of traditional brokers on tech, it is just that the volumes on exchange were so high, and right from exchange to our platform, there were a bunch of things clogging up. We have done some things to ensure atleast we don’t clog up.
I purchased a order with details below
Trade Date Exchange Product Description Expiry Date Type Quantity Rate Order No Trade No
17-06-2016 MCX NICKELM16JUNFUT 30-06-2016 B 1 ₹608.10 181616900100069 191336
and for this order i place a sell order with limit order at 598 but it executed at 607.70 below the trade details
Trade Date Exchange Product Description Expiry Date Type Quantity Rate Order No Trade No
2 17-06-2016 MCX NICKELM16JUNFUT 30-06-2016 S 1 ₹607.70 181616900100793 193264
Why the sell order executed at 607.70 instead of my order 598 ????
If you sell at a price lower than the current market price, it will sell at the market price itself since the price is better. If you want to sell below the market price, you need to use orders with trigger. By having a trigger, your order will get activated only when the price goes down to 598. Check more about using SL or SL-M orders for doing this here.
Have you started providing margins / leverage without pledging the holding shares for intraday equity and F&O? Like how IIFL does?
You will need to pledge to be able to get margins.
Is there Cover Order & MIS for Intraday Commodity Trading ? If yes, How many times you provide the Margin for Commodity Trading & what is the Brokerage?
Yes cover order and MIS allowed for MCX. Check this cover order calculator and this MIS calculator.
Is Zerodha charge on margin amount which he provide for intraday player
No charges.
I heard Zerodha is planning to make margin available for more than a day(like Icicidirect which provides margin for 5 days). Is it true? If not presently possible, any such plans in the near future?
Yep, working on making it work.
Hi, I have a very basic question. Let’s say I buy Nifty 8400 PE and after a couple of days I want to cover this. What do I do, just sell it like I would futures or how does this work? Would it be considered short selling or exiting the long trade on the Nifty8400 PE, should the execution be done differently? Thanks a lot.
Just sell it like futures trades. You can also go to your positions window and exit it.
Hi,
I am new to zerodha. I want to ask if zerodha provides any Intrday margin against the securities held in my Demat account?
Yep, check this post.
Hi,
If I have short sell an option and suddenly market goes against my position, If I don’t have sufficient fund in my account position get square off automatically (by RMS team). Why as a client I cannot close my open position even if I don’t have sufficient fund ?
Short options and futures have unlimited loss. Also exchange has minimum stipulated margins for such positions. Hence our Risk team will square off when you go below the minimum exchange stipulated margin and if you don’t transfer funds.
I understand that short selling is very risky. Suppose I have short sell an stock call option of Axis bank (1 lot @ 20 rs) margin required is approximately 60 k and I have 65 k in my trading account. Suddenly stock price start increasing and I am short of margin required to hold the position. I want to close my open position and doesn’t want to bring extra fund as now stock has gained momentum. When I try to close such position where I am short of margin to hold the open position I get the error that I don’t have enough margin. Why In this case I need to wait for the risk team to identify and square off my open position ? I am not taking a new position and closing my existing position why it checks for margin again ? Calling the zerodha support and asking them to close my position is the only option in this case ?
I think system should allow user to the close position and loss should be adjusted against already blocked margin like it happens when risk team square off the position.
Thanks,
Saurabh
Saurabh, you are mistaken. You can anytime exit a position that you have already taken, no need of extra margin for that. If this error you have encountered, I think it is because you already have a pending open exit order. If you place another order with this pending open, it will be considered as if you are trying to take a new position.
Hey,
How much margin would be charged if I am wanting to sell Nifty 8000 CE option and BankNifty 17200 CE option on the day of expiry. Would this strategy be Under the Margin Intraday Square Off route?
Moreover, how much would the brokerage be applied and what if I am wanting to let the trade settle on the closing price to save on brokerage!
Regards
You can use our SPAN calculator: https://zerodha.com/margin-calculator/SPAN/ to check the margins. All MIS orders get squared off at 3.20pm. Brokerage is the same, if you exit or if the option expires in the money.
Per lot of Option Selling how much would the brokerage be?
The brokerage is flat Rs 20 per executed order. So Rs 20 irrespective of how many lots you trade at one time.
i HAVE TO ADD BENEFICIARY FOR ONLINE TRANSFER OF MARGIN TO TRADE IN NFO SEGMENT PLEASE PROVIDE ME WITH THE ACCOUNT DETAILS
Details here: https://zerodha.com/funds-transfer
SIR I BUY BANKNIFTY FUTURE 1 LOT AND SAME TIME NIFTY FUTURE SELL 1 LOT.. HOW MUCH MARGIN REQUIRED…
You don’t get any margin benefit for this. Around 80k for both positions. Check this: https://zerodha.com/margin-calculator/SPAN/
3. My another doubt is Whether I can buy the stocks with the absolute leverage for all companies given in the link https://zerodha.com/margin-calculator/Equity/ or it will be reduced?
Yes, you can buy. The margins are subject to change based on the discretion by our RMS Team.
Hi,
I am a new trader and I have some couple of questions.
1. I need to know is there any limits in buying the stocks. For eg, If I am having 1lakh in my account and now I want to buy hindalco in intraday for the entire amount. So the exposure for hindalco is 10 times and say the market price is 90. So if I am calculating, I can buy 55555 stocks. Can I buy these much stocks at a time?…
2. I need to know whether any extra chrges will be charged or the charges mentioned in this link https://zerodha.com/brokerage-calculator only will be charged if I trade with Zerodha. Whether the calculation will be same even if I trade for the above mentioned quantity and amount?
Kindly reply me and it will be great if I get the answers for these questions in my mail too…. Thanks in advance
I have some follow up questions.
4. Currently I am doing trading with hdfc securities and moving to zerodha. In hdfc, I am not charged with any interest for the leverage amount. I need to know it is the same case with zerodha or there is interest. If there is interest, it is how many %?
And it will be charged in the overall transaction amount or only on my margin. For clear understanding, If I am having 10000 and buying stock which has *10 leverage. So 1 lakh. Interest will be charged for 10000 or 1 lakh?
5. There is E-margin facility available in HDFC sec, in which i can buy a stock with same leverage like intraday and I can hold it for T+5 days. There is no interest for first 4 days and interest will be charged from the 4th day. If there is E-margin facility in Zerodha, what are the rules and regulations?
1. We don’t allow you to buy on leverage and carry forward positions yet. You can only trade on leverage for Intraday for which there’s no interest.
2. No, this facility isn’t available yet. Will be available soon.
1. Yes, you can. Your calculation isn’t right though. If the leverage is 10 times, and the price is Rs.90, you can only buy 11111 stock, not 55555.
2. These are the charges that will be levied. You have to add Stamp charges to it which isn’t part of the calculator because it varies from State to State.
Dear Sir;
I am a Zerodha Account user. Last week I deposited some amount to start trading in MCX but it was very surprising to know that there was only limited intraday limit provided upto 2x. Others are providing much more leverage for intraday trading. I think this is a issue Zerodha Team needs to rectify soon. As for intraday traders like me, we would love to enjoy more leverage upto atleast 4 times of the capital invested.
Thanks!
Mayank, providing higher leverage increases the risk for the brokerage significantly. At our pricing, we can’t afford to take any such risk.
Hi,
I want information in understanding TAX calculation on profit in delivery trade and Margin trade.
how Tax is calculated on Short term profit and Intraday Margin profits?
thank you
Shankar R
There’s a detailed module on Taxation for traders on Varsity here: http://zerodha.com/varsity/chapter/taxation-for-traders/
Dear Sir/Madam
I am new to the trading and I really appreciate the Kite and Q systems web interface. It is very sleek and intuitive.
I have a question on below SAMPLE option trade scenario.
Suppose, I have a cash account of 4 lakhs.
And I have shorted a SBI Put @ 170 strike at 2 Rs premium (2000 shares per Lot).
Now for this trade, say Margin blocked is 80k.
This leaves the my cash account value at 3.2 lakhs.
Suppose, the option was assigned to me (which requires 3.4 lakhs btw) . In this case, does Zerodha unblocks the margin amount or I have to have 3.4 lakhs in my cash account to complete the option assignment ?
On a different note, could you please add Option Chain Web interface for a stock in Kite?
Keep up the good work. Thanks
Satya
The options that trade on the Indian markets are all European style which means that they can be exercised only upon expiry and not prior to it. On expiry when the option gets assigned to you, you’ll have to pay the difference.
Kite is a web application and we’d like to keep it as minimalist as possible, nonetheless, I’ll pass on the feedback to our developers.
Hello sir..
I m beginner to trade in share market so
I have confusion to place order..
If I want to buy trident scrip @50.. Qty.200
Then how much I set limit..
Stop loss and triggered price..
Plz tell me with in numerically also tell me sell process
Thnku
If you want to buy higher than the current market price, you’ve to place a Stop loss order. Here’s blog which explains how stop loss orders work: http://zerodha.com/z-connect/tradezerodha/zerodha-trader-software-version/stop-loss-orders-limit-market
In your case, if you’re placing a:
a) SL order: Trigger price will be 50, limit price will be 50
b) SL-M order: Trigger price will be 50
Can you provide things in terms of Money. As in how can I use margins with Rs.1 Lakh in my account. What all things can I buy and what if they go down sharply.
Margin calculator https://zerodha.com/margin-calculator/Equity/, gives you an idea on how much leverage you can get. Typically our risk team automatically starts squaring off trades when more than 50% of capital required for the trades is lost.
I am holding shares worth 20 lakhs and in this only 10 lakhs is under the Approved list of yours and the haircut is 40%
, Can i use this and trade for intraday trades in cash market and how much limit i can get and how to use the same for Futures
No, you can’t make intraday trades in cash market with collateral margins. You can refer to this blog: http://zerodha.com/z-connect/tradezerodha/margin-requirements/online-pledging-of-stocks-for-trading-fo to check how much margins you’ll get for stocks you are holding.
If pledged can i trade in cash market for intraday
No.
so cash market only with cash ?
HI SIR IAM HAREEN IM INTERESTED IN STOCK MARKET BUT I DID NOT NOW ABOUT STOCK MARKET BUT I WANT EARN IN STOCK MARKET PLZ SUGGEST ME HOW CAN I EARN
Hi Hareen, Zerodha Varsity is a good place to get started to learn the basics of Stock markets. Here’s the link: http://zerodha.com/varsity/
is it compulsory that sign on power of attorney?
Check this post http://zerodha.com/z-connect/queries/stock-and-fo-queries/poa-power-of-attorney-for-your-demat-account
can i buy stock for intraday which is not listed in equity margin calculator ?
example- NBVENTURES is not listed https://zerodha.com/margin-calculator/Equity/
can I buy and how ?
You can buy, but you won’t get any intraday leverage. Only stocks that you can’t buy for intraday are those which are in T2T segment.
Hi I am interested in opening one trading account along with demat account with Zerodha. But before this, i would like to clear one doubt.
Say, I am having shares of worth Rs. 10 lacs.Then, How much leverage position can I take in delivery equity and in How much time I need to square off my leveraged positions.Also provide information about interest/penalty chargeable on leverage amount.
We aren’t providing any leverage for Equity delivery as yet. We will be providing this facility soon, the interest rates will be informed subsequently.
Can I place margin Intra day order before 9:15 AM
Yes.
super post
Hi, Nithin I want to open an account with Zerodha, but I could not find the address where I have to sent my forms. How many photos I have to send if I want to open a Trading and Demat account with Zerodha. I have thoroughly read the FAQs and other things in your website. Another quarrey is for Trading and Demat account I have to sent Rs. 300 and also I have to pay the yearly AMC charges together.
Please clarify me.
2 photos required. AMC charges are payable end of every financial year, you don’t have to pay along with account opening.
Hi,
Please let me how much margin will required in the below trade.
I sell one lot of L&T 1000 PE also buy 980 PE.
You can check this out yourself: https://zerodha.com/margin-calculator/SPAN/
1. If I use MIS/CO order for intraday in equity and there was some margin used, will there by any charge over margin that is used?
2. Currently I see margin used as -500 in Kite. What does that mean?
1. We aren’t charging any interest for intraday trades for now.
2. This would be the gain that you would have made doing intraday trades.
Can the collateral amount made available after pledging shares be used to trade stocks under Equity-MIS(Standard/CO/BO) with enhanced MIS multiplier amount OR the collateral amount is only meant to trade in F&O segment.
If yes for Equity intraday, then is it mandatory to also have funds as Free Cash for equity-intraday OR I can trade with whatever MIS multiplier margin on collateral amount I get but without any Free Cash.
Collateral is only meant for F&O.
Thanks Nithin, to have a better clarity I request you to clear few doubt/queries raised in following hypothetical scenario:
For example, let’s assume I do not have any amount (Rs. 0/-) as a Free Cash under Available Funds for trading. However, I have pledged shares of HDFCBANK worth Rs. 200,000/-.
1. After applicable hair-cut of 12.5%, I get a collateral amount of Rs. 1,75,000/-(approx.) for Future Trading (NRML & Intraday) and Options Writing (NRML & Intraday), right ?
2. Now, as I am not having any funds as Free Cash in my trading account but I want to buy 2 lots of YesBank(31-March-2016 Expiry) for overnight position until expiry. The entire NRML margin as per Equity Future Margin Calculator for the trade is Rs.1,74,138 (approx.). So to enter the position, can I utilize the whole collateral amount of Rs. 1,75,000/- or not ?
3. If not, then how much money or %ge of the entire position of Rs. 1,74,138(approx.) I have to bring it in Free Cash form to enter the trade?
4. Is there any standard proportion of Collateral : Free Cash (irrespective of whatever the positions one may want to enter) for entering such type of trades that needs to be ensured ?
5. I understand that if the position runs into loss then I may have to pump in the sufficient money in order to cover the MTM loss and meet the SPAN Margin requirement. But if the said trade is running in profit even then is it mandatory to always keep certain %ge of position as Free Cash in my trading account ?
Check this post: http://zerodha.com/z-connect/tradezerodha/margin-requirements/online-pledging-of-stocks-for-trading-fo
1. Yes
2. Yes you can use whole collateral. But since you have no cash, an interest will be levied for the shortfall of cash. Check the post above.
3. 50% of margin required has to be compulsorily brought in as cash.
4. 50:50, collateral: Cash
5. Yes, do read the post above.
Thanks Nithin 🙂
Nithin,
You have mentioned that under NRML once i take position, i can hold till expiry. But what if the price of the contract goes down? Will i have to shell out the temporary loss also?
For example, i have taken a sell position in Adani Power for Rs.76. On the next day, it has moved up by Rs.2/-, which means there is a temporary loss of Rs.40000/-. Will you be blocking this temporary loss also from my account? Please clarify.
Regards
You can carry forward your NRML positions until expiry provided you are maintaining sufficient margins for it. If there are MTM* losses which reduce your margins, you’ll have to pump in additional funds, failing which positions is squared off.
* The temporary loss is referred to as MTM (Mark to Market)
Hi,
can I use pledged shares margin for FO and shares delivery ?? .
Pledged shares margin can be used only for futures trading and options shorting (not option buying).
Hi,
I have a account opening related question.
I do know that for trading F&O derivatives a income proof is required,but is it also required if i want to trade equity Intra-day margin or (MIS) as you call, because i am a student and i have no source of income other than my pocket money,other than that i have all the required documents.
Thanks
For equity intraday no income proof is required.
Hi,
If I pledge 10 lakh worth shares in your account and how much margin I may get ? If say 7 lakh margin given can I take positions in futures and roll over continuously ? If so For 7 lakh margin how much SBI futures can be bought and be held ?
Check this: http://tradingqna.com/29334/pledge-stocks-margin-trade-will-interest-charge-calculated, you will have to bring in cash also when you pledge stocks. I guess margin for 1 lot of SBI is around 60k.
Instead of cash can one give bank guarantee payable on demand?
We’re not accepting BG’s for now.
Hi,
I think Zerodha is not providing any extra exposure on BSE cash segment. As I love to trade in Force Motors but Zerodha is not providing the same on BSE. So I didn’t open account at Zerodha.
Dear Nitin,
Is it possible to shift from MIS to CNC during market hours?
For instance in lkp securities we can shift from margin to delivery during market hours, where your open positions are not trigged at 3.20p.m
Even, if you have any shortfall in your margin amount for taking the delivery, your are allowed to carry forward for 7 days only, by paying a penalty (ranging 18 to 21%) for the residual amount.
By this time if your break-even is achieved, you can cover your position and escape from the loss.
It is very useful method during crisis.
Is there any carry forward system is available for delivery trade in zerodha.
With thanks,
Coming very soon.
Dear Nitin,
Kindly let me know whether Zerodha is providing margin against holding in my demat account. My trading ID is RS1654. I opened an account 3 months back but I am not able to trade in this account because Zerodha is not having facility of providing margin (which I came to know after opening account). My wife’s account is also with you, her ID is DP0351 in which we are doing options.
I purchased shares only to fulfil the criteria of Rs.50000/- in each script ( for pledging) one month back and now its price is running below Rs.50000 .
Tradeplusonline.com is giving margin against all the shares present in demat account & its brokerage is Rs.99/- per month for unlimited options trades. Should we shift to this broker?
Dr.Suhas Kothavale.
This facility should be available in the next few days. We will send details soon.
Hi, Is it possible to do BTST/STBT type of trades in equity without having a demat account? If yes, what will be the margin for overnight positions.
STBT not possible, but yes BTST. Currently no margin given for overnight position.
After I sell a stock in equity will the entire amount be available in my limit amount immediately or only after T+2 days to buy new shares on delivery basis. In my old broker , I have this option of selling shares which are in my demat and allows buying fresh shares in equity . Please clarify ?
Hi Nitin,
First of all congratulations for Kite Browser based Trading interface and Q back office. Really wonderful and makes trading life easy. Also on your consistant engagement with Zerodha traders and their queries. wonderful
Just couple more questions from myside
1. When are we going to see CO and BO options in Kites browsing interface ? any tentative timeline
2. I have one more question on the margin front. Lets say for Nifty option i have Bear call spread, where i sell on call strike and buy another OTM call strike. Here there is an amount blocked as margin for Option sell , say 30000/-. Now if keep the positions for some days, until i see a MTM profit.
Here my question, if lets say, when Call spread is still open, can i used the margin already blocked already 30000/- for lets say for intraday buying options, eg., BankNifty CALL or PUT , intraday MIS with no need of addition margin.
Kindly clarify
Chandra sekhar rokkam
Thanks Chandra,
1. Hoping to be live before end of this month.
2. You will not be able ot use margin blocked for other positions, but what you can do is convert the existing position to MIS so that a portion of margin is unblocked. Before end of day, you can convert the position back to NRML.
Thanks. This helps.
1. Is there any tentative time frame by when we can transfer mutual funds from other demat accounts to Zerodha and pledge them with Zerodha?
2. Will the minimum limit of Rs.50000 to pledge individual scripts with Zerodha be removed by mid-January (tentatively)? Or is this minimum limit of Rs.50k permanent?
1. We’re in the process of automating the entire pledge process. We’ll explore the possibilities of providing margins against MF’s once the automation is over.
2. We’re working on removing this limit
Thanks! Any tentative time frame for both 1 & 2?
1. No time line
2. yes, by 2nd week of Jan
Hi sir pls tell me how much margin i need to deposit to short a call option..?
if Nifty Dec 8000 CE is trading on rupees 10.00 if i want to short a lot then how much margin i need to deposit,?
You can use our SPAN calculator to find this out yourself. https://zerodha.com/margin-calculator/SPAN/
Sir
I wanted to know about the margin for the stocks not listed on your margin calculator
Like subex, vikaseco
Plz rply asap
Dheeraj, if it is not on the list, there is no margin available for those.
Dear Nithin,
I opened demat with Zerodha , but I am not getting margin. I was told that the script value should be more than Rs.50000/-. For this I did changes in my portfolio immediately & made 3 scripts eligible for getting margin. But today I received a mail that this will take first week of January 16. Now I am afraid that till first week of January 16 , these scripts will loose value if markets come down resulting these scripts non-eligible for pledging. I am unable to trade with Zerodha account right from its opening i.e.almost six weeks and my other trading account which was with Reliance I have closed & transferred securities to Zerodha.
Suhas, our in-house demat business started only last month (until now we had partnership with IL&FS). Some initial hiccups with the pledging thing, we should have it up by first week of Jan.
Dear Nitin
I have a trading A/C with Zerodha and a trading and demat A/C with HDFC securities.
I want to link my Zerodha trading a/c with HDFC sec Demat A/c. After both get linked,
1. Can i pledge my shares which are there in HDFC Demat a/c and get margin money in my Zerodha Trading a/c..?
2. If i place buy/sell order(Equity: Delivery based) in zerodha trading a/c for shares which are there in HDFC demat a/c who will charge me the brokerages…?
1. No you can’t. You will have to first open demat with us, transfer those shares and pledge them.
2. For buying, you pay brokerage to us. For selling you will have to do it through HDFC, so their brokerage applies.
Dear Nithin,
My trading ID is RS1654. I closed reliance account & transferred securities to Zerodha account. Today I requested for pledging the shares , I received reply from support that this facility is not available with Zerodha. Already I wasted one month after opening Zerodha account for securities get transferred. My wife is getting margins from Zerodha & we are utilizing this margin for trading.
I wanted to play low risk option strategy which constitutes both buying & selling of options which will not be possible if I am not getting margin.
Kindly let me know whether & when the margin will be available with my account.
We’ll have this facility enabled soon.
Yes, otherwise I’ll not be able to operate my account which was possible with reliance (but brokerage is high in Reliance). Again I wanted to ask one thing – one mail is received about my wife’s account ‘DP0351’ that Zerodha is going to pledge only those scripts whose value is more than Rs.50000/-. I wanted to know whether this is true ? If it is true I have to make major changes in our portfolio , I have to sell small holdings , keep number of scripts lesser with each holding more than Rs.50000/-. These are major changes in portfolio & strategy.
If it is not true, then please give directives regarding this to respective authority.
Thank you.
THANKS SIR
1.how i can avoid leverage if i want to buy share which are in your margin list and still do intraday as i know to do intraday trading in zerodha we should opt for MIS CODE if i dont opt for MIS then other code is CNC I HAVE TO CHOOSE ONE AMOUNG THEM
2. ALSO HOW TO PLACE THE PREMARKET ORDER IN ZERODHA KITE . I HAVE SEEN SMALL ICON IN BUY/SELL BOX BUT IT HAS ONLY AMO AFERMARKET ORDER WHICH IS NOT PREORDER STILL I TRIED TO PLACE PRE ORDER WITH THAT AMO OPTION BUT IT WONT EXECUTIVE
1. hmmm.. you can still buy using MIS itself, but buy for lesser quantity. You can also buy as CNC and sell it before 3.30pm.
2. During pre-market ( 9.00 am to 9.08am), you use the normal order itself. AMO is to place after market.
is there possiblity of losing all money in margin trading
Yes
sir please clearify me about margin in intraday equity trading
suppose if i buy share using margin
say
trading amount used =100000
share value =100 rs
original quantity which i can buy with no margin=1000
Quantity which i can buy if 10X leaverage =10000
what if share value falls to 95 rs
so 5*10000= 50000 loss
since i have brought more share for less money will i inccur loss ????? i am not understanding this kindly help out will i make still profit or loss with leaverage.
Yes, your calculations is correct. Leverage is a double edged sword, if you use it correctly the returns can be substantial, but it can also wipe off your account.
i have only 10000/- rs how can i start mcx cruid for intraday trading
You can trade crude or crude mini using product type as MIS for intraday. Check this: https://zerodha.com/margin-calculator/Commodity/
Dear Nitin,
Do you offer margin on normal Futures trading.
Regards,
Not sure what margins you’re referring to because all Futures are leveraged products. A Nifty Future contract whose contract value is 6L, you pay only 47000 to buy/sell.
If you want to pledge stock and use margins against such pledge to trade in F&O, we do provide such facility.
Yes its updated now. Thanks 🙂
Could not find them(Jet Airways and Century Ply) in the Zerodha Brokerage Calculator List for Intraday. Thanks.
The list doesn’t show up yet, but it has been added to the leverage list.
Dear Sir,
Please let me know whether we can get margin against Bond traded on Cash Market(NSE) and margin will be utilized only for F&O.
http://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm?cat=SEC
Thanks
For now we are providing margins only against Equities
Dear Nithin,
There are no Intraday Margins Provided on Jet Airways and Century Ply. If you can check with your team, the minimum intraday margin of 3times can be provided on these stocks. Thanks.
It is added now.
Dear Nithin,
I & my wife are clients of Zerodha. Please let me know whether we can get margin against mutual fund units. We want to play very low risk-low returns options’ strategy. Because returns are very low I want to have position size bigger, for it to become profitable. If MF units are in dematerialised form & are in your custody-pledging account, there should not be problem to get margin against them. We are having relationship with Zerodha almost from its launch and we don’t want to search another broker who is giving margins against MF units
Dr, currently not possible to pledge MF. But should be possible soon, we are about to launch our MF platform. Until then, you can buy the ETF’s (Liquid, Nifty, basically MF’s which trade on exchange) and pledge them.
Dear Nithin,
It is not question of trading in ETF , that I am doing. The question is related to our existing folios with FundsIndia which can be used for pledging to get margins. Before pledging we have to compulsarily dematerialise them as client can sell them directly. Please let me know when Zerodha is giving facility of margin against MF units.
We’ll let you know. Should be out soon.
Yes dear Venu,
Eagerly waiting for this service to be launched by you. My adviser was insisting to open an account with Astha-trade for the margin against MF units. I denied for it.
in short please let me know what does span margin, Exposure margin, premium receivable, total margin mean after calculation?
Not sure what calculation you’re referring to. SPAN is the minimum margin that is required to enter into an F&O position. Exposure margin is the margin that is collected over and above the SPAN margin for the position you’ve taken. Charging exposure margins is at the discretion of the broker. Total margin is the sum of SPAN and exposure margin.
Premium receivable is the premium that you receive when you short/write an option contract. You can read more on the basics of F&O trading on Varsity – http://zerodha.com/varsity/module/futures-trading/
Sir,I have a account balance of 16000,,am I allow to used margin for buying and selling stock with that minuscule amount.
Yes, you can trade stocks. Here’s our margin calculator which tells you how much leverage we provide: https://zerodha.com/margin-calculator/Equity/
Thanks Nithin. Granules, Dishman, NCC and Sintex are added to the Intraday Margin List with leverage of 3x times which is decent.
Dear Sir,
I am not able to get intraday margins for companies like Dishman Pharma, Granules India, NCC and Sintex Industries. Will they be added anytime soon?
Tejas, we will give intraday margins on only stocks which don’t have the habit of going into circuits. Basically liquid stocks. Will get our RMS team to have a look at these stocks.
You are right but still 3 times margin for some good stocks is very less. At least 5 to 6 times would have been better. Is it not possible to have a StopLoss buy/sell through CO/BO orders. If possible, then the current margin policy is okay. Kindly do something pls.
Yesterday i purchased 10 share of idea at 9:47 and sold at 12:02pm noon.
After that i purchased AMTEK 10 shares at 9:51 and sold 1:01 pm. Similariy i purchased COALINDIA 05 shares and sold at 1:01pm.
But at 3:20pm 03 orders (COALINDIA,IDEA,AMTEK) are placed and orders are complate also.
But the problem is that these orders are not placed by me. It is shown that these orders are placed by ADMIN2.
Kindly tell me how these three orders at 03:20 are placed automatically and who is ADMIN2?
TANVIR SINGH
DT0504
All positions that you take as MIS (intraday) get auto squared off at 3.20pm. The user will show as Admin 2 for those. My guess is that either your buying or selling was taken as MIS. Gettting someone to call you up. Do send such queries to [email protected].
I want to do trading. but i have no idea how to do it. Could some ome come to my place and teach me once. Please reply to my mail. eagerly waiting.
Ida, we don’t have anyone who can come to your place and teach. But we have a very popular online education initiative http://zerodha.com/varsity/, check it out.
Is it not possible for Zerodha to provide a uniform margin of 9 times for MIS for at least the stocks which are traded in F&O, for example, Jindal Steel, DLF, RCOM, etc? There are many stocks which are frequently traded with high volumes are given only 3 times. Kindly look into this.
Uniform margin is not really possible. Imagine a stock like DLF that is frequently moving more than 10% in a day. If a client takes a position with 9 times margin and if the stock suddenly moves over 10% against him, this would mean he will loose more money than what he has in his account. This is not a risk a brokerage should ideally take, being aggressive on leverage is what causes brokerages to go bankrupt.
You are right, but still 3 times is very less. At least 5 to 6 times would have been better. Is it not possible to have a StopLoss buy/sell through CO/BO orders. If possible, then the current margin policy is okay. Kindly do something pls.
Is pledging mutual funds fully supported? Is there a list of mutual funds which can be pledged?
Pledging MF is still not supported, you can pledge ETF’s though very easily. We will let you know when we have pledging for MF ready.
Nithin, do we have any tentative time frame by when pedging of mutual funds could be introduced?
Request to look into for providing atleast 4 times margin on available capital like many other brokerages for intraday trading (MIS positions).
We give between 3 to 10 times, check this equity calculator: https://zerodha.com/margin-calculator/Equity/
Please inform how much margin will I get for writing options intraday i.e with MIS option
40% of the margin required for overnight positions. You can use this tool: https://zerodha.com/margin-calculator/SPAN/ to calculate option writing margins.
Hi, Nithin, there is no doubt that you have done a lot with regard to developing new softwares like, Pi, Quant, Q backoffice, Kite and many more, but what could have been more useful to the traders has not yet been done. You provide very less margin in equity for stocks such as Jindal steel, DLF which is just 3 times, and at max you provide 9 times for intraday. Can you please reconsider increasing the limit for the equity 15 times or more. In this regard, RKSV securities is much better. They are providing 15 times for MIS for all stocks listed in FO and 20 times for CO and BO for all stocks. I humbly want to say that simply saying we are Zero Brokerage and all will not benefit traders but give more margin for intraday so that traders can trade in more volume and can get benefited.
Checking
It would be better if you provide margin calculator for shorting in equities too!!! I doubt if it is same as in case of buying in intraday, like if it is reliance then 9x for buying and for shorting too??
Shashank, margin requirements might be off by upto 10% compared to what is shown on the calculator. Buying and shorting is the same margins.
Hi,
Two sets of questions:-
(1) For NRML Option writing contract (carry till expiry), can I use margin against equity shares held by me? Also, do I need to pledge the equity shares to get margin against them? Or simply by holding these shares in my Demat account, I can get the margin?
(2) I have certain apprehensions on opening Demat account with Zerodha (via CDSL) instead of IL&FS (via NSDL). Can you pl help?
1) You’d have to pledge these shares to get margins for writing options.
2) As a client it wouldn’t be of any difference to you. The user experience will remain the same.You certainly needn’t have any apprehensions. However its a choice you can make although I must say there are certain distinct advantages that you’d get by opening an account at Zerodha along with the benefits of faster demat account openings and better customer support for DP related queries.
Thanks. How much time does it take to pledge or un-pledge the securities? Is it online?
You’d have to send an email request. Pledge takes 24 hours, so does unpledge.
Hi,
Assume today is the expiry day, Nifty@8000, I write 8200 CE @ 2 at 10:00 AM under MIS.
Now assume at 3:20 PM Nifty@8100 and there is NO buyer for 8200 CE. Hence at what price system will automatic square off at 3:20 PM.
System places a market order, but yeah if there is no buyer it will get carried over to the next day. There will be no way to exit this.
If I have MIS position and have enough margin as well, in this case can I convert my position from MIS to NRML.
Yes, u can.
Sir, Please clarify this. Supposing if I buy 10 Nifty contracts with the help of leverage margin (all contracts under MIS type) and sell a certain number of contracts before the system automatically square off them, Can I be able to convert the balance contracts to normal order and carry forward next day as I have squared off certain contracts and hence some more margin is available.
Yes, you’d be able to convert positions to NRML (carry forward) as long as you have the required margins for it. Here’s how you can convert positions: http://zerodha.com/z-connect/tradezerodha/zerodha-trader-software-version/zt-position-conversion
Suppose I have bought 1 lot of Futures at 8000 and 1 lot 8000PE (ATM put option at 120rs)
There are two possibilities-
1. Trade goes in my favour…so there is no question of providing margin
2. If nifty goes at 7500… my loss in futures lot will be approximately equal to my profit in Put option
So is there any need to provide any additional margin?
and can I take the said position against my Collateral margin? If yes, what will be the margin requirements in that case?
Hi Nithin, Sorry i missed to mention that my query is for Overnight / Positional trade… waiting for your reply
Your margin for one lot of Nifty would be roughly Rs.16000. If you’re going long on the Put option, your margin reduces considerably, considering you have a hedge. The margins required would be Rs.6300.
You can use the Span calculator that we have for computing such margins: https://zerodha.com/margin-calculator/SPAN/
1. Does this mean that I have to provide only 6300 rs for carrying 1lot of Nifty futures + 1 ATM put option?
2. What will be the margin requirement if i have availed collateral margin against my securities?
1. Yep
2. Margin requirement remains the same.
Hi Nithin,
Do you allow mutual funds to be pledged for margin money to write options? Somewhere I had read that Zerodha will allow mutual fund investing in some months. Is that true? If true, is it possible to invest in mutual funds and use that for margin? What would be the haircut on that? Thanks,
Abhishek
Abhishek, currently no. But yes we are working on taking the MF module live at Zerodha soon. Once done it should be possible to pledge. Details of Haircut, and etc will share once we are live.
Suppose i am long nifty and the total initial margin required to be put up is 25000. What is the maintenance margin required in my account before my position is automatically squared off?
Kindly elaborate a little on the margin call/RM squaring off position automatically concept of Zerodha
Initial margin involves SPAN + Exposure. SPAN is the minimum margin required below which there will be a penalty from the exchange. So by the end of day if your margins are lesser than SPAN it will get squared off. You can use our SPAN calculator to check for this.
sir
kindly clarify i cant understood short sell how its possible to sell without purchase if so how to put sell order and clarify how to close that position by purchasing options again ifso whethetr i want to sell
Check this: http://zerodha.com/varsity/chapter/shorting/
Hi Nithin, i would like to switch from ICICI direct to Zerodha but iam currently as a traveller in Thailand for 4 months. Is there any way that i can open account ?
Raj, you can still print out our trading forms, fill/sign and courier back to us.
Hi
I have the following open positions
Sold Nifty 8800 Aug CE for 60.75
Bought Nifty 9000 Aug CE for 30.3
Sold Nifty 8000 Aug PE for 73.25
Bought Nifty 7800 Aug PE for 43.4
Today’s values for the same :
8800 Aug CE – 95.5
9000 Aug CE – 40.5
8000 Aug PE – 16.65
7800 Aug PE – 9.6
Unrealised MtoM present shows up as 678.75 in the limits screen. I thought it should be 546.25
1. What is the formula for calculating “Unrealised MtoM present” based on the numbers given above.
2. For my position mentioned above,
a) if the “Unrealised MtoM present” is a negative number on a particular day.
b) and as long as the absolute value of “Unrealised MtoM present” is less than the cash that I hold in my account, the shares that I have as collateral will be not be sold to cover up for MtoM losses.
Is my understanding correct?
Thanks
DK3052
unrealized MTM is calculated by using current price vs previous closing price.
yes, as long as unrealized MTM losses is lesser than the cash, the shares as collateral won’t be sold to cover losses.
Hi
Thank you for clarifying my doubts so promptly.
1. You said that “unrealized MTM is calculated by using current price vs previous closing price.”
This is applicable only for options sold/written, not for options bought right?
2. As an options trader, I just to need to check 2 things on a daily basis in the “limits watch” ? –
a) “Margin Used” < "Direct Collateral" + "Cash Balance"
b) Unrealised MtoM Present < Cash Balance
Or is there any thing else that I need to monitor?
Please clarify. Thank you.
1. Yes, no concept of MTM for option buying as you have already paid 100% money.
2. Yep you are right, just monitor those two things.
Thanks Nitin for your prompt reply….In continuation of my earlier question, how zerodha manages this risk and how they make sure that client doesn’t suffer because of organisation’s default. ( If I can ask this…).. or is it the responsibility of IL & FS to take care of this issue as pledged shares are with IL & FS.
KAG, Had answered it here sometime back: http://tradingqna.com/2302/how-safe-is-it-to-trade-with-zerodha
Hi,
Just would like to know how exactly pledging of shares and F & O Margin works. As shares are transferred from my Demat account to brokers Demat account for margin, what happens in case of brokers defaults in margin requirement with exchange. Is there any individual client’s exposure for such default (specifically towards shares pledged with broker.)
Whether those pledged shares/portfolio remains intact irrespective of brokers default.
This question raised Just to understand the risk involved in pledging of shares. Risk arising not due to my trade but due to brokers non compliance with exchange regulations.
Thanks
KAG
KAG, if a broker goes bust then both your funds and stocks lying with the broker might get blocked for a bit. In the worst case scenario, exchanges have the investor protection fund to guarantee that your investment comes back to you. So it is best to trade with brokers who are compliant, who don’t overleverage, or take bigger risks just to garner some business.
sir i more thing this is all same for mcx also
i mean any penalty in mcx if account balance is less than required margin.
how much penalty is charged by exchange
Yes, similar penalty on MCX also on short margin. It is around 1% of the shortfall for the first day, and then slowly keeps going up.
sir
means crux of all discussion
i have to manage that my account amt should above than 70% and above than span margin
then no penalty and no square off nothing happen
thanks sir,
square off reference is taken by you is current price at 3:20 PM
ok sir i got all my answers thank you very much
also i got a mail from you that provides me link for span margin calculation thanks sir
Is there any penalty if my fund is less than required margin but greater than 70%
Ankit if the money is lesser than exchange stipulated SPAN margin, then yes penalty is charged by the exchange.
hello sir,
i have a query
i m asking you with one example
suppose
i have buy nifty FNO 2 lots on 1st july with span margin 30,000 and exposure margin 20,000
amt in my trading account 60,000 ok so free cash is 10,000
now i started to take MTM losses
2nd july lose of 8,000 Free cash available 2,000
3rd july lose of 3,000 now my exposure margin starts eroded by 1000
4th july lose if 18,000 now my exposure margin remains is only 1000
5th july again lose of 1000 no exposure margin remains only span margin of 30,000 remains
6th july again lose of 1000 now span margin which remains only 29,000
i think now you will square off my 1 lot
now i don’t know what will you do so i am considering you don’t square off
7th july again lose only of 14000 now only 15000 remains
8th july again lose of 1000 only 14000 sapan margin is available
9 th july again lose of 16,000
now i am in negative account.
sir i have to ask you on which date and time you will sqaure off my position
and in this senario on what dates and time you will contact me or email me for payin (are you giving any intimation or not before spuaring off my position)
The position would most likely be squared off on 4th July itself, where you have lost most of your exposure margin as well. Squareoffs are automatic, no intimation is given out.
sir is there any criteria at this level or below this percentage of your exposure margin whenver the price gone lot will be square off
on 4th july when it will be square off at 3:25PM
or whenever price touches to an level intraday it square off
please clarify me what formula you have putten up in your system for square off the low margin holdings of FNO NSE and MCX both
70% loss the positions are auto squared off. 3.20pm all MIS positions while trading equity and 20 mins before close of the market for commodity, is auto squared off.
sir as closing price is declared by nse is after 3:30PM so what price reference is assumed by you to calculate MTM lose of that day at 3:20PM
sir i want to also know exact which time NSE is declared its closing price of that day
equity and FNO both and where can i see that price
as in my above example when price reaches up to your 70% lose criteria you will square off my 1 lot only or both lots will be sqauired off
Ankit, MTM is done based on the current price and not closing price. NSE gives out adjusted closing price around 3.40pm. If you loose money, we will first square off 1 lot, i.e if you are holding two.
Sir this 70 % is of exposure and span margin both?
as i heared before that exposure margin will erode first and whenever span margin starts erode broker will square off position
it is all customized rule for brokers or given by NSE/SEBI
you follow 70% criteria of total margin? despite of any ratio of margin of exposure verses span…?
can u plz send me the link where i can find one rupee change value of commodities.
thx
We have added this on our brokerage calculator itself. https://zerodha.com/brokerage_calculator , go to commodities here.
Sir,
I have a small amount in my trading account,but on Saturday’s I am getting 10 lac as margin in my account can I trade you that leverage
My ID :DT0419
There was mock trading held by exchanges today, we had given dummy margin money of 10lks to everyone for that. Account balance will be normal from monday.
Thank you Nithin sir for your swift reply……
Hi Nithin,
I read through this blog and understood initial margin requirements well from your answers. But I have a question related to Maintenance Margin Requirement. Please consider following scenario.
Current market is at 8300. My position is LONG NIFTY – FUTURE- 8300 and covered this position with BUYING NIFTY-PUT-8300 ATM. Though its tightly covered, I have a hypothetical question. Lets assume due to whatever news, Market goes down 600 points in a day or two, and would you require me to pay Maintenance margin, if so how to find out how much it is, or will you allow my position to stay not force closed by your brokerage, means allowing with Initial margin alone, as it is tightly hedged with PUT option. Thanks for your reply.
Jai, the position is hedged, so the margin required to trade futures will be lesser once you have taken both the positions. You can use our SPAN calculator https://zerodha.com/margin-calculator/SPAN/ for this.
But once you have taken the position, any loss on futures is debited on the same day. The profit you make from Puts is not realized until you sell it. So you will be required to maintain the margin at all points of time, if you make a loss, you need to transfer more.
Thanks for your quick reply, highly appreciated!
say i bought nifty fut at 8000, at what point does my position gets squared off? at 7500? at that point 75% of my margin will be eroded…and after what percentage there will be a warning i,e like 50% or 60% ?
Dharani, if the margin in your account required drops by more than 40 to 50% of the total margin required, it will get auto squared off. We are more lenient on days when market is not moving around, but around times of volatility we get a little stricter with our rms.
but your executive over the phone told me that it gets auto square off once it reaches 75%? by what you said,i can’t leave my nifty future go more than 200 points in the other direction?
I assumed your were asking on an intraday futures position. Yes, if you are trading futures using NRML (providing entire margin of Rs 16000+), we would typically square this off from our side only around the 75% levels. But that said, if markets suddenly get volatile, we would definitely get stricter.
i have two scenarios,
first one is, lets say i have 1 lakh in my account and i buy one lot far month nifty future at 8000 for 16k. even if nifty goes 1000 points down over the next two months time, my position won’t be squared off right? because i have additional 84k in the account. mtm will say -25k thats it right?
the second one is, lets say i buy one lot next month nifty future at 8000 for 16k.and market goes down 300 points.my mtm will be 7500.at that point lets say i am selling one lot far month nifty future.from that point if nifty falls further down,even 1000 points,my position won’t be squared off right? because from that point whatever i lose in long i gain in short right?
in second one mtm is -7500
1. Yes, right.
2. Yes, right.
In both the cases you have Rs 1lk in your account right? So there is no need to worry off square off.
not in the second case,its just 16+16k.will there be a problem? it will be hedged from further losses right?
The second case is called a calendar spread, margin requirement for calendar spread is quite less. Once you buy this month and sell next month (or vice-versa), the margin required for this will not be 32k, but only around 5k. Check this: https://zerodha.com/margin-calculator/SPAN/. No issues with such positions, they won’t be squared off.
Thanks a lot. You people are the best 🙂
I have another doubt…let’s say I have only 20k in my account and I am buying nifty next month future at 8000…and nifty goes down around 100 points…now if I wanna sell far month future (Calendar spread) should I bring in another 16k and then once I sell it the margin becomes around 5k or I can sell it without addictional cash?
Yes Dharani, you will have to bring in more funds to place the new order, and only once position is taken does the margin drop.
but zerodha does settelment on t+0 bases…?on nse
We give whatever is due to NSE on the same day. But NSE releases payouts only on T+1 day basis.
BUT zerrodha says it settels at T+0
if an opportunity arrises after on the day i sell. i wont be able to take the position with out being able to pay a penilty (not knowing how big it might be,the penelty).
are u sure its this way because i will kind out loose out on oppertunites …..in earnings season..
https://zerodha.com/why-us
point :19
i normally deal in options derivaties i wanted to know that if i{ buy options worth 10000 using all my capital say on 10th june sell on 11 th june at 11000} can i buy options worth 11000 on 11 th june or 10000 before close or can i buy anything at all.
Yes, you can. The systems will allow you to. However you’ll be charged a penalty because the settlement of options happens on T+1. There’s a detailed explanation given here: http://tradingqna.com/615/options-tuesday-bought-options-immediately-charged-penalty
if i have stocks, can that be used as margin for derivative trading position ?
Yes you can, send an email asking to pledge the stocks to [email protected]. You will get margin from those pledged stocks after haircut for you to trade futures or shorting options. Make sure to keep some cash in your trading account for any MTM requirements. Cost of pledge/unpledge will be around Rs 55 per scrip.
i can see my holding details from back office login, but its not visible in trading portal….
Divesh, sometimes the holdings get updated on the trading platform a little late. But do refer the backoffice Q for it.
hi nithin , can i open an trading account of my 5 family member ( different ids ) with single login and can execute orders behalf of my 5 family members
No Vishal, you will not be able to place orders with single login for 5 different clients
Equity Margin are Provided only to listed stock in zerodha or all the stock traded in BSE or NSE
i have observed in the blog that exchanges update margin requirements 5 times in a day and wat happens wen exchange increase f&o margin from 5 % to 10 % , if i have 1 lakh in my account and have 3 lots of nifty short ??
Shashank, margin typically doesn’t vary during the day in those 5 times exchanges share the data. This will typically go up, only if there is a huge fall or bounce (upwards of 4 to 5% on index). If it goes up, it will show in your trading platform in cash positions, and are you are supposed to keep the minimum SPAN margin atleast.
my case is i have 1 lakh in my account and i am 3 lots nifty short , (10000 + 7000 ) * 3=51000 will be deducted from my account for taking the positions and i have 49000 buffer left for MTM losses , if nifty goes up by 400 points from where i shorted i want hold the short positions and lets assume i take the position on monday morning and there is extreme volatility after i take the position and market goes up by 5% or 400 points and if the exchange increases the f&o margin for nifty index from 5 % to 10 % after monday evening and for tuesday should i transfer additional 51000 for holding the contracts or is 10 % margin applicable for taking additional positions ?? and does the exchange increase the margin within the trading hours on monday ??
Yes exchanges can change margin intraday, but hardly ever to cause any material impact.
If market goes up 400 points and you hold 75 short nifty, you make a loss of 30,000. Your total account balance is 70000, but you are holding positions worth 51000. So you don’t have to worry. Assuming the losses exceed and your account balance reduces from 51000, that is when you need to bring in more margin.
my account balance is ( 51000+ 19000) = 70000 after nifty goes up by 400 points and 5% margin for taking the position for 3 lots is 51000 and wat if the money ( span margin + exposure margin ) required for taking the position becomes from 5% to 10 % intraday or after monday evening ie for tuesday ?
if the ( span margin + exposure margin ) becomes 10 % , does it applies to existing contracts or only for new contracts ??
It will apply to existing contract as well.
as we are trading through internet who is going to notify about additional margin during intraday and how much time do we have for transfering the funds or reducing the open positions ?
Shashank, the trading platform will be updated with the latest margins. Typically the risk team will square off positions only when the margins go below the minimum SPAN margin requirement (not span + expo, but only SPAN) before market close. So you get enough time to transfer.
I have a question on intraday trading. I don’t want to use leverage but I would like to short sell a stock (which is not there in my demat account) in the morning and buy it back at 3:28 PM. Which order type (MIS or NRML or CNC) should I use? Thanks.
If you want to short sell a stock you have to use MIS, but all MIS positions get auto squared off at 3.28pm. The only way you will be able to do this is by shorting futures – you can short futures using NRML and hold it till close of the day.
Nithin,
Cant seem to be able to trade on BSE, is there anything I need to do?
Best to send an email to [email protected] with your client ID. They will check and get back.
Hi Nitin,
I have a question on option trading applying sophisticated techniques like deep OTM put / call spread, Iron condors etc to limit risk. However I find that SPAN margin doesn’t give enough margin benefit to make this kind of trading profitable.
The margin money I pay is my capital locked and my returns from the spread is not even sufficient to meet the costs like riskfree interest cost of my capital, taxes and brokerage etc let alone to cover the kind of risk I take.
I can probably make some money only by selling naked options which in my opinion is mindless way to trade.
I have gone through various posts of yours and I find your reasons for not giving this margin benefit for spreads like
1. What if I close the bought portion of the spread leaving the written option open,
2. What if there is no liquidity in the market etc.
You also say that unless NSE introduces spreads as seperate products, this margin benefit will not become a reality.
It looks to me that writing options is out of the reach of a rational common man.
If this is the scenario, how can we expect to see increased liquidity in the markets. People know that they’ll lose money if they enter the markets because the risk return ratio is disproportionate heavilily skewed in favor of risk. The most important part here is, western countries offer this benefit to spread orders limiting the margin requirement only to the extent of risk exposure. I believe they follow the same SPAN. How do they manage to give this benefit.
How about you brokers join together to convince stock exchanges to introduce spread products with margins only to the extent of risk. Are these exchanges focussed on cashflows they get rather than boosting the system with quality products? What is SEBI doing? In my opinion, this encourages Naked option writing which will leave the investors broke and on the road when a black swan event happens.
Unless and until such sensible limited risk, limited return products are available in the market with reasonable margin requirements, liquidity will be a distant dream.
It’s a long post and thanks for your patience to have gone through the same. I have just let out my frustration for not being a part of a sensible game.
Kindly update if you have any updates on this margin issue?
Best Regards,
Shiva.
Understand your frustration Shiva. The issue with India is the abysmally low retail participation. NSE launched some really nice products like Interest rate futures, VIX, among others. If you look at the liquidity on these contracts, it is zilch today. I guess the exchanges are also in a catch 22 situation, they can launch new products only if there is liquidity and participation from the broader market.
But yeah, we have already represented this issue to the exchanges multiple times.
There was a news item in today’s Economic Times – SEBI is trying is increase the contract size; NSE is opposed but BSE wants it (BSE doesn’t have any derivatives business to speak of, so now wonder they want it to hurt NSE).
SEBI got rid of min-contracts a while ago according to the same news story.
All this in the name of protecting the “small guy” by keeping him away from derivatives; I’m not sure how restricting freedoms in an open marketplace helps protect “small guys” when all banks and AMCs have been extremely predatory in the last year pushing MF schemes with 3 year lock-ins and huge undisclosed commissions – specifically targeted at small guys.
As for protecting the small investor – this morning SBI futures seemed to be selling cheaper than SBI stock (based on both bid and ask quotes. I actually sold the futures before I realized this was the case) ! I don’t know the status now. The difference was about Rs. 1.5 – almost 0.5% for May 28 futures ! and as far as I know there is no dividend etc. forthcoming to justify it (e.g. ICICI bank Jun futures are selling cheaper than May futures; but there is a Rs. 5 dividend in between the expiry dates)
Needless to say, the above would be impossible if shorts on stocks were allowed in any meaningful way.
Hi Nithin
Great work man in setting up Zerodha. Kudos!
I have one small query. Does Zerodha supports long dated Index (Nifty) option ? So can I buy a Nifty-8500-Dec,15-CE option on Zerodha ? I can do that with my current broker, wanted to know whether you support or not.
http://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/optionDates.jsp?symbol=NIFTY&instrument=OPTIDX&strike=8500.00
Thanks
Nikhil
Thanks Nikhil, yes, you can trade long dated options (actually everything that trades on NSE) 🙂
I guess that’s it. Gonna open an account ASAP 🙂
My current broker has a feature where if you buy a stock for delivery and before end of the day you square it off, then it is treated as intra-day and the corresponding brokerage is applied. So does the same work at Zerodha as well if I buy a CNC order in morning and then sell it by 3:30 PM ?
—
Nikhil
Yes Nikhil, same applies at Zerodha as well. 🙂
Sir, I want to know that, in “intraday trade” if I buy 100 shares @90 & sell @ 100 @ 90.50 [in this case the brokerage is Rs 20 (buy) + Rs 20 (sell) ] am I right ?? or the brokerage is still according to 0.01%….
Brokerage will be Rs 20 or 0.01% whichever is lower. In this case, since you bought for Rs9000 and sold for 9050, the total turnover is around 20k, and hence brokerage will be only Rs 2.
Hi,
Flat Rs 20 per executed order for all type of orders? like MIS, CO, BO..etc How about the other service charges, Is this same as other brokerages or you will charge differently?
Yep flato for all order types. All other charges as stipulated, check our brokerage calculator, and our charge list.
For Writing options :
If I have say 1000 stocks of company A and I am writing a call option of company A (1000 stocks in 1 lot). So do I need to keep margin in that case?
Yes Deepak you will need margin for writing options. But if you have pledged these 1000 stocks with us, you get a margin using which you can write calls of that stock or any other that you want. To pledge, send an email to [email protected] with quantity, a round trip of pledge/unpledge costs around Rs 60.
Hi, i am purely an intraday trader , most of the time i keep scalping and have a margin amount of 50k to trade under MIS, but with my amount of 50k i can trade either in commodity or FNO of equity, so can u allow me to trade both using same margin amount, if not permanently then atleast for some 45days, by the end of which i am sure to make another 50k and maintain a seperate account .
Hi Pras,
This isn’t allowed as per the rules of the Exchanges. No broker is allowed to have common margins for Equities & Commodities. If someone’s letting you do it, they aren’t complying by the guidelines of SEBI & FMC.
Hi, i am prely an intraday trader , most of the tme i keepscalping and have a margin amount of 50k to trade under MIS, but with my amount of 50k i can trade either in commodity or FNO of equity, so can u alow me to trade both using same margin amount, if not permanently then atleast for some days.
Hi Pras,
This isn’t allowed as per the rules of the Exchanges. No broker is allowed to have common margins for Equities & Commodities. If someone’s letting you do it, they aren’t complying by the guidelines of SEBI & FMC.
A quick question may be repititive:
in case I pledge stock and sell some options with the margin received as a collateral — will my account go in negative and will there be any charge in case account goes in debit.
Rajesh, when you pledge, your account is credited with margin for you to trade. If you are using this margin to trade futures or sell options, no your account won’t go into debit.
Thanks for quick response.
Hi Nithin,
Quick question regarding pledged shares: Can the collateral amount made available after pledging shares be used to purchase additional shares for overnight delivery (CNC)? Will this result in the ledger balance becoming negative?
Thanks.
Collateral amount can be used only for futures and option shorting trades (trades where margin gets blocked compared to money getting debited from your ledger). You can’t use it for buying more delivery shares or buying option premium. Yes this will result in ledger becoming negative as the money gets debited once u have bought.
If i short stock option and incurr MTM loss, whether it would be debited on same day or on the day of squarring off the position?
Dhawal, all losses will be debited on the same day.
Hi Nithin,
First let me thank you for giving me this platform to gain the experience of genuine investors. Its a very big knowledge repository you have created here, which made me to learn trading. As I was only a long term investor till last month. I have noticed the point that ” it is advisable not to use MIS while buying options since all MIS positions would get squared off before the close of markets” in the above post which is very rare to hear from business point of view.
Thanks for that and I have noticed that the Windows application Zerodha Trader always have product type as NRML by default, whereas the mobile application ZerodhaMobile Trading has the default type as MIS. Which is considered to be a defect in the mobile platform, since mobile info is more prone to ignore because of the size. Could you please change the default type to NRML in the mobile platform as like in Windows application.
Since I had a successful 1st trade in windows application, but when I trade in mobile today I didnt notice this and ended up buying as MIS:(.
Attached the screenshot for reference.
Thanks for the kind words. 🙂
To change the product type, here’s what you have to do.
1. Log into the mobile app and tap the orange settings button.
2. Once you get to the Settings page, you have an option to choose “Click here to set default trade options”
3. Setup the default product type you want, the default lot size, etc. and close the settings page.
Consider this scenario:
I short RELIANCE MAR2015 – 1200 call options @ Rs5 sometime in first week of March.
I do not square it off until the expiry.
On expiry day the underlying closes at 1000 and the last traded price of this option is Rs 1.
What would be my gains? Do I have to pay Rs 1 for options to settle? or they are expired worthless and I get entire Rs 5?
Is there any company which offer client facility such as where we can use intraday margin for equity stocks and nifty futures but can also hold same position for approx 10 days with intraday margin
No vicky, no broker can let you hold F&O positions with lesser than exchange stipulated margins. For equity stocks, there are brokers who give you 2 to 3 times overnight leverage, but they charge you an interest between 15 to 24% on whatever margin provided.
Dear sir,
as per your span calculator only Rs 10,256 enough for this spread,
i have 12k in my account but i am notable to do this. say insufficient fund???
so how much require for this spread???
best regards
m.paramaguru
Param, the exchanges give you the margin benefit only once you have taken both the positions. So you will still need to have funds to get into the both the positions individually. Once you take the position, the margin blocked will drop automatically.
Hi,
I want to know is there any option of intraday margin trading where i can keep the position open for 5 days like the client mode trading of icicidirect. Do i need to square off my open intraday positions the same day? or can be kept open for any specific number of days, this is helpful when the market tanks sometimes and the next day is up, it helps to reduce/convert losses into profit.
Thanks
Renu, you can hold positions only to the extent you have cash in your account.
Can i place an order before 9 for intraday after market(9.15 to 3.20)
Yes you can using after market order option. Check this post.
I wanna know about collateral margins on Liquid Bees………..
Suppose I have some Liquid Bees which value 1,00,000 /- and I pledge those liquid Bees with you guys …
1 ) how much % hair cut you apply on this instrument ?
2) Do I need to have 10 % as cash margin in my trading account ?
3)On EOD if i have some MTM loss then how you guys manage this loss ?? does you liquid my Bees unit or manage it with Cash balance ?
4)Have I pay any interest if I pledge Liquid Bees ?
5)Does It 100% safe with you guys cz I have to sign POA of my DP account ??
6)What is the charges I have to pay if I pledge Bees ?
7)I have only trading account with you guys so I need to open new DP with you …. how Much it cost to open A/C and AMC charges ??
thanking you ……….
& Nithin you r a true youth icon ………..You r “Krishna” for Me ( & fellow traders) .. (Y)
🙂
1. Haircut is 10% on liquidbees, so if you put up 1lk, you get 90k in margin.
2. Currently we don’t ask for any cash, but it is best to keep some in the account in case of any MTM losses. If there is no cash, we will square off your position to the extent of the losses.
3. If you have cash balance, it gets adjusted with this cash. If there is no cash, liquid bees gets squared off to the extent of the losses.
4. No
5. Every broker who allows you to trade online takes a POA on the demat account. The POA is limited power and can be used only to debit shares from your demat account. This is required because when you sell shares, without the POA we will not be able to debit and provide those shares to the exchange.
6. A round trip of pledge/unpledge costs around Rs 60/pledge irrespective of how many liquid bees you pledge.
7. Yes you need to open a demat. Cost is Rs 550 which includes upfront AMC of Rs 400 for the first year.
Cheers,
Team,
Can you please clarify these queries?
Example: Natural gas trading at Rs 165. I want to place a buying order Rs 166 and stop loss 160 with a target 168.
Q1. By selecting product type as MIS how can I handle this situation?
Q2. Is there any extra margin required to place 3 order at the same time when none of these get executed? Plz explain
1. Buy SL-M trigger 166 , Sell Sl-m Trigger 160, Sell limit 168
2. Yes, since you haven’t taken any position, margins will be charged for the 3 orders separately. Once your position is entered, margin will be blocked for two – your open position & one of your exit orders.
whether there is anyone like its member who directly do trading with exchange gets benefit of lower margin { only span} , watching today all snap quote windows on zerodha , in 9900 CE someone is writing 85000 share at 2.10 , it requires so much capital , thats why i am asking you?
Arvind, out of the 1500 odd members on NSE, only 400 or 500 are retail brokerages. The rest are doing some kind of proprietary trading, and with decent amount of capital. So yes, there are many such professional trading firms sitting on big capital who like to short and especially out of the money call options.
The margin requirement is same for everyone.
hi , i check your span calculator , for writing one lot of currency options span is very less but exposure is very high , why that sir and whether exchange also demands so much exposure margin or it is your company risk managment policy , and whether the same thing applies in nifty options writing because i am checking NSE margin , there is no mention of exposure margin in option shorting and in currency option shorting and only span margin is mentioned there?
Arvind, whatever SPAN + Exposure we charge is what exchanges ask us to. We are one of the few members to clear with the exchanges on T day, so our margins are lower than most brokers out there. Same with currency and equity options.
Hi Nitin
Do I earn any interest on any surplus cash in my trading account (back office)?
No sushil
hi within, i want to know if i write currency option on last date of expiry and if i pocket all the premium of that strike , when zerodha will release my whole amount with the premium i pocket back to my account and another thing i want to know when NSE directs the brokers only to collect the span margin from clients in option writing why all brokers with you also collects both span and exposure from clients?
Settlements in India are T+1, so you will receive all the money the next day. Exchanges ask us to collect SPAN + Exposure, they penalize for any amount below SPAN.
at what time in morning , i will recieve my amount.
before the market opening.
what are the annual maintenance charges, brokerage and account opening charges if i open an account with zerodha.
Check this post.
when penalty of 1% is charged by nse , i mean if we buy a lot in futures for holding and its price decreases, then nse charges 1% penalty?
Penalty is charged by the exchange when the margin in your account is lesser than the minimum SPAN margin required for the futures. So for Nifty 10 lots, if SPAN is 140k and your account balance becomes 100k. So for this shortfall of Rs 40000, you are charged a penalty of 1% which is Rs 400. This is 1% per day.
hi nithin, actually i today open account with zerodha but does not know from where to transfer funds and other things , is there any videos provided by zerodha for guidances , please guide , getting confused !
Nishant, there are blog posts on everything here on Zconnect. The sales person who helped you get started, will call and give you a demo.
hi sir , sir i have asked this question so many times on trading q&a but does not get the reply , i want to know how to do cash future arbitrage in nifty 50 stocks , just like jsw energy in nse at 101.75 and on futures at 103.95, if i want to do this arbitrage hows it is possible , can it be done on intraday basis and how the transaction will be completed .
Answered here.
Where do I get list of approved securities (including ETFs) that can be pledged to create margin?
If you can email [email protected], you will get that list.
Check this link.
hi , whats the margin required for doing cash future arbitrage in nifty and do this facility is available at zerodha and last i am reading a article written by IDFC mutual fund that whatever may be the condition or something else , you will always remain in profit in cash future arbitrage in nifty, is it true?
Check this link.
Hi,
In regards to collateral marging, when you say only applicable to F&O segment, does this include Currency Futures and Options?
Thanks
Sh
You can use the collateral margins for both equity and currency trading. Futures and Option writing/shorting only (no option buying).
just want to conform from you thats why i am asking here , on trading q&a , somebody has ask a question and answer to that question is contradictory from your answer earlier given , question is , due to low volumes on BSE deravatives , it gives incentive to traders to trade on options also which does not have any open interest and whether the traders which trade on it have to do intraday or can carry position till expiry ? the answer to that is it can be carried till expiry , but in one question you have answer that it has to be done intraday , so can you please just clarify SIR!
Answered: http://tradingqna.com/10297/deravatives-incentive-options-interest-position-intrady?show=10297#q10297
whether the margin required for BSE futures stocks is same as that of NSE futures where stock listed on NSEfutures are same listed on BSE futures?
Yep, it is almost the same.
can you tell me if there is open interest of any stock option and traded quantity is same as that of open interest , will it be possible to do trading on that particular option.
They are different things, check this link. You can ask all your market related queries on TradingQNA directly.
hi nitin , have you checked why bse options are not getting addd on market watch , i ask question last day , you said i will check!
It should be working now.
hi nithin , trying to add bse options on market watch, but not adding , any problem in zerodha?
Shouldn’t be a problem, but let me have it double checked.
Dear Nithin
there seems to be a change in daily margin statement – earlier the Column titled ” Additional Margin required by member as per RMS ” used to have the exposure margin and the “Exposure Margin” column used to be empty.
For past several days it is the other way round; the Exposure margin is showing in its proper column.
Did anything change in Zerodha policies and/or regulations from SEBI/NSE
Also you had earlier written in this blog that in case of margin shortfall, Zerodha will not automatically square off positions as long as there is enough money to cover the SPAN margin (even if there isn’t enough to cover Exposure+SPAN) – is that still true?
Hi Vinayak,
a) This was done on the basis of NSE’s suggestion. As you mentioned, we are now showing the Exposure margin under the same column as against the “Additional marging levied by Exchange” column.
b) This would be at the discretion of the RMS team. In your own interest, its best to maintain both SPAN and Exposure margins for any carry forward positions.
Dear Venu
I’m not planning to keep outstanding margin, the question is to deal with conditions of high volatility when the available margin may dip a little below SPAN+exposure requirement (e.g. by about 20% of the exposure margin requirement; may be 5-7% of the overall requirement) for perhaps a day, may be two (near a weekend). At the time of entering the position I keep some extra money in the account; however if the market turns suddenly then I may not realize in time that margin has gone low before the market close. My positions are always cross-hedged (small in individual securities; overall hedged by both long-short in options) such that shortfall even with a 10% single day fall in any stock or broader index will not cause margin to go below SPAN.
My problem with “discretion of our team” is – they may not understand what is going on and may square off the wrong thing. Zerodha doesn’t give margin calls so there is no way I would be able to close a few positions on my own. And as last week has shown I may not even be able to logon to the system even if I had an idea that something is going wrong.
Hence the question about square off – Nithin had earlier on this blog (on Nov 1 and Nov 4) commented that positions will not be automatically closed as long as there is enough money to cover SPAN margin.
Here are two other questions:
(1) Earlier Nithin has written in this blog that the interest chargeable is on the amount by which margin is short over the SPAN-only. If there is enough money for SPAN but not enough for SPAN+exposure then NSE will not charge interest. Is that still true?
(2) whether there will be automatic square off of positions in case SPAN + 50% of the exposure margin is still covered by the cash available at 3:20PM (perhaps with some sort of an email warning to close the positions next day)?
This also leads to some feedback from me – on the new platforms and software you are planning perhaps it may be a good idea to generate some automatic alert emails if the margin is going in dangerous territory and/or too much volatility is suddenly coming in. Even if we do have funds, mobilizing them into your accounts may take a few hours and better to have some forewarning.
1. Yes the NSE penalty comes into place only when the margin is below the SPAN margin requirement, and not below SPAN+Exposure.However, for currency derivatives, you have to maintain both SPAN+Exposure or margin penalty will be applicable
2. We don’t typically square off positions if the minimum SPAN is present in your account. But that said, if markets are extremely volatile, we square off positions upto around SPAN+50% exposure. But if you have this much covered, we won’t run any square offs.
Yes, sending alerts on margin is something that we definitely intend to have in the things we have planned for future.
On the alerts – I noticed there is a “Set Alerts” option once I login online (email and SMS)
does that send SMS already?
No it doesn’t.
hi nitin , today on bse , i am watching open interest data , sail trading at 78 approx, 65 put of 18 dec expiry weekly at 1.95,and 70 put of month end expiry at 0.10 , nithin why there is so much difference in price
Vicky best to put market related questions here: http://tradingqna.com/.
nitin , if open interest on put side is 3139025 and open interest on call side is 3609000, then what will be the put call ratio and whether it is bullish or bearish signal
PCR will be 313…/360… which is 0.86. PCR in itself doesn’t mean too much, you have to see how it is trending, generally lesser than 1 means more calls being written (which could mean bearishness) and over 1 meaning more puts being written (which could mean bullishness). Best to see how PCR changes with change in market, this might be more insightful.
Cheers,
Hello Sir,
Does Zerodha provides intraday margin for Short strangle strategy intraday as provided by other brokers (i.e selling say 8200 put and 8300 call simultaneosly) and squaring the positions same day.
If yes, what is the no of times margin. Also plz let me know the amount required in account for executing the above strategy for 1000 quantity each side including the margin given by zerodha
Varun, you can use our SPAN calculator to have this checked. For intraday, we ask you for 40% of the overnight margin requirements (that is around 2.5 times leverage). If you use products like Cover order and Bracket order (which have compulsory SL) this reduces to 25% or 4 times leverage.
Sir, If I Buy 100 Nifty Dec14 8600CA and short 100 Nifty Jan2015 8600CA, What will be the total margin requirement?
You can check this yourself using our SPAN calculator https://zerodha.com/margin-calculator/SPAN/
hi nitin , i know this a little bit personal question but i cannot stop myself from asking you , when you are a trader and when you write options , did you use any software for your help or general mood of market , put call ratio , world market view , indian market view are the factors which you take into account in writing options and what is your average profit percentage per month in the market ?
Have you seen this post?
hi nithin,i am checking the put call ratio , there is 0.85 ratio on put side and 0.92 on call side , then how we know what is the final put call ratio , whether there will be average by combining these two ratios?
Didn’t get how you are getting 0.85 and 0.92 numbers. Put call ratio is , open interest of Puts divided by open interest of calls.
hi nitin , just want to know whether the principle which applies in option writing on NSE that if in put writing nifty remains above over strike price and if in call writing nifty does not close above over strike price , writer will kept the whole premium irrespective of the fact that premium has increased ,will also apply on option writing in sensex index of BSE in weekly options and monthly options and also whether volumes on weekly options on indexes will available on only last day or are also present one day early before expiry?
Yes works like on NSE. Check this option chain for liquidity on BSE website. Liquidity on BSE options are usually available on a few contracts.
The only trade that I will be doing is shorting out of the money nifty options.
There will be no trades in future.
I have margin benefit through pledged shares.
Do I have to keep 10% cash?
Thanks,
Kailas
Nopes, no need to keep cash unless there are mtm losses.
Hi NITIN, today i ask a question on trading q&a that whether options on NSE and BSE are American or European , it got a reply that in both exchanges options are European , but one day i write nifty option and i got profit on same day and then i buy it , then what was that , why i am able to buy it after writing the same if options are of European style , it creates a lot of confusion , please you must clear it and if possible please in detail.
Both American and European options, can be bought and sold or vice versa on the same day. The difference in American and European is that all European options can be exercised only on the last day of expiry. In Indian context where all options are cash settled, the difference is hardly any. We are putting up detailed discussion on this in http://zerodha.com/varsity
nitin , today at 3.20 pm when i decide to write 17800 put of bank nifty going at 11 rs premium , i place the order at 11 rs , it does not get executed but at 3.23 pm, i reduce the price to 10 rs , it gets executed immediately , i just want to know why even the sell price is at 11 , my order does not get executed and when i reduce the price to 10 , it get executed , whether it is because of expiry or something else ? please reply me i put this question on trading q&a but does not get satisfactioraly reply , so i thought it will be good to ask you.
That is how markets are demand and supply. At Rs 11 there was no demand, at Rs 10 there was. It is not because of expiry, that is how markets are every day. I try to sell you apples at Rs 100/kg, you don’t want to buy it. If I reduce to Rs 80/kg you probably will buy it. Do be more specific when asking on tradingqna.
hi nitin, why you does not provide about bse future and option margin in span calculator
Vicky, still confusion on exact BSE margin requirements. Hopefully should be up soon.
Zerodha SPAN tool is not working…
Seems to be working, are you trying this? https://zerodha.com/margin-calculator/SPAN/
nithin, i am downloading the form from your site , but there is one section of trading account form and other is trading and demate account form , let me tell you i want to do option trading in futures and option on NSE and BSE and want to do it intraday and positional and please send me the correspondence address of zerodha where the form has to be send
whether trading at BSE futures and options is available at Zerodha
Yes Vicky. If you aren’t enabled, print this exchange/segment addition form and send it to us.
nitin , on your zerodha page , i watched out STT trap link and completely understand it but when i watched a similar question on trading q&a , there a different answer appears and it is written that even if you write options and let it square off automatically on expiry date , even then you will attract an higher STT on whole of your contract value , what is that , i thought that if we write options we have already paid the STT on premium, then why it apply to whole contract , please clarify it ?
Vicky, let me look at that answer, if someone as answered like that on tradingqna he is wrong. If you have written options, STT is already paid.
margin required to write one lot of option sensex and bankex on BSE?any other indexes on BSE on which options are available
Presently only sensex options, margin required is similar to Nifty options.
sir , what are weekly options on BSE and whether trading can be done on the last date of expiry on weekly options and on monthly options
Vicky if you have questions which is not related to a particular blog post, do ask that here: http://tradingqna.com/
Hello,
I am new to futures, trying to understand few things.
Please excuse me if i dont make any sense.. so here is the question.
Say i am doing intra day on nifty :
I sell nifty future at say 8000 which has lot size of 25, so how much money should my account have .
8000 * 25
The calculator here @ https://zerodha.com/margin-calculator/Futures/ shows less, so how the amount is calculated which i should have for intraday.
Now while squaring off for the day , i buy back nifty futures at 7990 with a profit of 10 points,
now how will be profit calculated, will it be 10 * 25 or the margin difference.
I hope my question is clear.
Regards
Akshay
Yes Akshay, keep looking up Varsity our education initiative, we will very soon have the module on F&O on that.
Futures are leveraged products, so to buy 8000*25 = Rs 2lks worth of Nifty, you will need only a small portion of it also called margin. Margin for trading Nifty is around 9% of the contract value, so in this case it should be around Rs 17000 to Rs 18000. (what you see on the margin calculator link).
IF you shorted at 8000 and bought back at 7990, your profit will be Rs 250 ( 10* 25).
Thanks for the prompt reply nitin.
So it is as good as margin leverage provided by you guys on equity intraday but here the leverage is straight from exchange.
If.. in a not so happy day 😀 , i am shorting and nifty future goes up 9% its as good as 100% loss and product will be auto squared off.
Also the brokerage/stt/ and other taxes calculation will be at 2L.
Regards
Akshay
Hi,
I have a query, if I buy some ‘X’ share at Rs.100 in CNC with an amount of Rs.100000 of 1000 quantity for CNC and 10000 quantity for intraday, same day if I achieve my target and booked profit it will be converted to intraday as per my understanding so will you increase my quantity to 10000 though I have bought on CNC?
Didn’t get your question correctly. If you have 1000 shares as CNC, it will remain like that and the shares will be credited to your demat account. If you have bought another 10000 quantity as MIS(intraday) it will get squared off at 3.20pm automatically. If in this 10,000 you want to convert 1000 to CNC, you need to do it before 3.20pm.
i have already a account in zerodha , want to open another account for my brother who is living in USA , can i open it on my mother name and can i connect my bank saving account which is already connected with my account with the new account and please send me the link of account opening form and you guys are really great , hats off to you for operating this blog
Account can be opened in your mothers name, but you can’t map your bank account to it. It has to be her bank account.
thanks sir for your information , but i want to know that suppose there is last date of expiry and nifty is trading at 8400 and CE of 8600 is at 15 rs premium and i write 8600 CE on the last expiry date at 15 rs premium and somehow nifty reaches 8500 but way below the level of 8600 but the premium of 8600 CE increases to 20 rs , and i am incurring the loss of 5 rs premium , but i want to know that will i incure loss or will i make profit due to nifty closing below the strike price of 8600 and if i make profit , what will be the profit if i write 4 lot of nifty .{ will the same thing applies to stock option also}.
🙂 Nishant we will very soon have a module on F&O on Varsity and will help you with your option basics. If you write 8600 CE and Nifty closes at 8600 or anything below that, the entire premium that you would have received would be your profit. So if you have shorted at Rs 15, 4 lots or 100, that would mean profit of Rs 1500 as profit.
thanks sir for your useful information , but if contract traded for a particular trade is low ,but open interest as i say is in lakhs , so then there is no difficulty in either buying or writing that particular srip , even if contract traded is very low? and another thing i want to know is whether STT applied in writing options on premium ?
Open interest isn’t really liquidity, there could be large OI but people not trading the contract actively. Yes STT is on premium – 0.017% on selling side.
sir, i want to know that what is difference between contract traded and open interest , because today when i writing 250 put of SBIN { and stock is traded at 295} , contract traded are very low { around 110} but open interest is in lakhs and i also want to know that though it is the month of nov but can in trade in stock options of dec contract in last ten days of nov contract and whether volumes are enough there to trade in last ten days of current expiry
Contracts traded (volume) is something that is happening on that particular day. Open interest refers to the number of contracts that are active for that particular scrip. Total Open Interest refers to the total number of active contracts for that entire derivative chain. So even if very few contracts were traded today, it’s possible that a lot more were traded before. Also, since the stock split happened for SBIN everybody’s contracts just increased 10 fold. 🙂
The volume on the next month contracts are always gonna be much lesser than the near month contract until the near month contract has expired. You can enter positions, but you can’t expect a high amount of liquidity.
is there any way by which open interest data of F&O market can be watched live?
Yeah, you can view the Open Interest data on Zerodha Trader.
You can go to Market > Top N (Ctrl+Shift+T) and choose the option “Open Interest” and view the details.
hi nitin , today i write 1000 shares of nifty of 8700 call option and nifty is trading at 8410 , if at expiry nifty closes at 8600 , but premium of 8700 call increases , then will i incure loses or i will be in profit because nifty closes below the level of my writing point of 8700
You’ll definitely be in profit if the market closes below the strike price of the call option you’ve written. At expiry, all out of the money option prices go to zero so option writers make profits.
hi nitin, i want to know why derivative trading is not popular on BSE and can i do deivative trading on BSE?
Yes you can trade on BSE derivatives with us, the exchange(derivatives bit on BSE) is relatively new and probably will take a while before retail participation picks up significantly.
How do I avail additional margin for F & O Market margins pledging my shares in my dmat a/c?
Regards.
Send a request to [email protected] asking to pledge your shares. By next day you will have that margin in your trading account.
is there any extra leverage provided for intraday option buying?
i know its 40% for intraday option writing(and even less if that option is OTM)
i think margin available for option buying too for eg: icicidirect offers “optionplus”(https://secure.icicidirect.com/trading/FNO/FAQ-Futures.htm#optionsplus)
Yep, we provide if you use bracket or cover orders.
thanks nitin,its really help me , i understand all the thing but a question is still in my mind that whether to watch open interest from future stock alone ( like idfc stock , to watch its open interest whether to see its future stock price or its option stock price of the strike price going at futures ) and if have to watch live the open interest data where have to see?
Nishant, why don’t you ask the same question on the tradingqna link. This blogpost on margin policy has nothing to do with the question. By asking in the right places, will help anyone else in the future having the same question. 🙂
hi nitin , the open interest data which gives clue about f&o market , how to check it and whether increase or decrease in open interst is check fro future data or from option data of that definite stock and how to see where there is call writing and where is put writing and there is increase or decrease in open interest in different strike prices , sir how to judge it
If you have questions on general markets, ask on tradingqna. Check this for your answer: http://tradingqna.com/389/relation-between-open-interest-volume-for-futures-trading
hi nitin , i today write tata motor put of 490 strike price and stock is trading at 520 , want to know whether my put is deep out of money or not and why the traders are biased toward put writing instead of call writing ?
490 puts is around 5% away from the current market price of 520, so it is not really deep out of the money, but it is out of the money. Traders actually write more calls than puts.
nitin , i bought 9000 call option in nifty , my query is that even nifty is moving higher , but the premium in 9000 call is falling slowly ? whats the reason for that ? is the same thing happen in stocks also ?
Nishant, you have bought deep out of the money option, so Nifty has to move significantly from the current 8300 odd levels for you to see any uptick in the option price. Buying deep OTM options, are like buying a lottery, the chances of getting it right is very very slim. Btw, do post such questions on general market related queries on http://tradingqna.com/
what is margin required for writing one lot of option of currency and how much of one lot of option of dollar contained and can you send me an example of option writing in dollar index
Firstly, no option for you to trade on dollar index. 1 lot of USDINR is 1000 USD. You can see the margin required to write options on our SPAN calcualtor.
hi nitin , if there is no volume on 9800 call option { whaether it if for one month expiry or it will be long} , shall i be able to buy it or in other words how to buy something or write something when there is no volume at all in that definite strike price?
Not possible to buy/sell if you don’t have a counter party to the trade. The best you can do is place a limit order and hope that it gets executed.
One thing i am observing is that as the markets are going high so are the margin requirements.
As per my logic the margin requirements is (somehow) proportional to the option premiums. So i was thinking that option premiums will go high as the margin requirement goes higher but this doesn’t seem to be happening. Is there some reason for this or am i missing something?
Thanks
Option margin requirements go up with the volatility in the markets.
Hi Nithin,
Thanks for a super quick response.
The reason i said that the option premium goes up as the value of the underlying market goes up is because i made a simple calculation using the Black Scholes option calculator.
Keeping everything constant (i.e, Interest Rate, Volatility, Time for Expiration & Dividend yield), i found that just by increasing the price of the underlying, the premium of ‘At the Money’ option increases considerably.
I have attached the screen shot from options calculator for reference.
Thanks
Of course Sukesh, if you have bought 8500 calls and market goes up, the value of 8500 call will definitely go up. That is because ATM options would have now become ITM and that would mean that for every point movement of the underlying the option premium also goes up by the same.
Hi Nithin,
Are the margin requirements that are prescribed by exchanges same for everybody including retail investors, Brokers, FII etc?
Please let me know if i can do something like register as a sub broker or something so that my margin requirement for shorting options can go down?
Thanks
Sukesh
Margin requirements are same for everyone.
hi nitin, my elder brother is on wall street , he told me that if you want to buy option buy it for a long time i.e. for one year , want to know that can i buy options for such a long time in india
Yes, there are long dated options available for Nifty. Click here to see the option chain, you can use the drop down on expiry date to choose the expiry.
Dear Nithin
I buy and sell overnight stock futures and options.
In the daily margin report there is a section “Margin required byExchange/NSCCL” that has three columns “Initial Margin” “Exposure Margin” and “Total Margin” . In all my reports it doesn’t show any Exposure Margin, the column is blank.
Then there is a section “Additional Margin required by member as per RMS” This shows some margin as well.
If I use the SPAN calculator, that show SPAN margin and Exposure margin which are broadly in line with “Initial Margin” and “Additional MArgin requires by member as per RMS”
Is the above the intention of the Daily Margin Statement?
Second question?
Assuming the above is correct, you had replied to Sukesh on 06 Sep above that automatic square off will happen once available margin falls below the SPAN margin. Does it mean that while when the “Additinal Margin….” may not be fully available in client account, as long as SPAN margin is available Zaerodha will not square off the positions (but client may be advised to square off on his own)?
Third question:
Does you SPAN calculator https://zerodha.com/margin-calculator/SPAN/ work exactly as the exchange calculator? I just entered my position (I had traded three days ago) into the calculator and the margins are larger than in my daily statement (the exposure margin is slightly larger, about 3-5%, that the “additional Margin …” column in my statement; the SPAN margin is a lot larger, about 15%) . If the SPAN calculator is not exactly what you internally use that is OK, it is a pretty good estimator (and slightly higher margin requirement estimate can’t hurt), but knowing that would help.
Also Is there a difference between margin requirements if a position was acquired a few days ago (and has consequently made MToM profit/loss) vs you are trying to enter that position now?
1. additional and exposure margin mean the same.
2. Yes, if the margin drops below SPAN is only when we square off for your NRML positions. And that too this is typically done only by end of the day (between 3pm to 3.30pm).
3. SPAN calculator is not live and can’t match exchange margin requirements to the tee. There can be upto 10% difference at times, but yes most of the times it is within a 1% range. Typically when big market movements happen, like yesterday, exchange margin requirements go up during the day. This is not captured by the SPAN.
I tried keying in the contracts again. The Exposure margin matches exactly. SPAN still is off by 0.3% (it is more on calculator than in the statement)
The difference can’t be because it isn’t live because market was close today so the calculation must have been done with end-of-day data from yesterday.
Anyway 0.3% difference in SPAN is hardly anything.
Just saw a very interesting thing – The Exposure market in SPAN calculator matches (exactly; within 25 paise; the difference is due to rounding error) the Exposure market in the Daily Margin Statement that came on Nov 31.
The SPAN margin matches the SPAN margin (exactly; the difference is Rs. 0) in the Daily Margin Statement that came on Nov 30 !
Looks like your SPAN calculator is using more up to date data for Exposure Margin 🙂
One more question on square off.
In the hypothetical case that, after a volatile day, my account doesn’t have enough to cover Exposure margin fully but SPAN margin is fully covered, does the exchange levy any interest/penalty in such a case?
No, penalty only if it is lesser than SPAN, penalty of 1% per day of short amount below the SPAN margin.
thanks nitin sir for answering my query, one more thing as you told that my money will come back on expiry in deep out of money option if premium comes at 0 , but will it come with profit or not and my another query is that if i need cash earlier can i square off my position earlier and will it get squared off at the going buy price premium
Nishant, check this post on option writing, you will get all your answers.
hi nitin, suppose i write deep out of money call or put option at premium of 10 and on expiry premium comes to 0 or 0.05 which i will not be anle to buy , nithin then what will happen to my capital on expiry?
Nishant, all out of the money options on expiry day will be worthless, so at the end of the day even if you don’t buy back, the margin blocked for your short option position is released.
From where i’ll get the “Price” for buying Nifty Futures 27-11-14 for for calculating margin in BO & CO?
You can find it on this link.
hi nitin, is it right that lot size of nifty is decreasing to 25 per lot and if yes , then why ? and my another query is that what is the margin requirment for option writing of one lot of nifty { if lot is of 50 shares then what and if lot is of 25 shares then what} and is the margin same for call writing and put writing
Yes Nishant, from October 31st onwards. Check the circular here.
I guess the reason for doing this is to improve liquidity, as the margin requirement per lot had gone up quite a bit with Nifty going from 5000 odd levels to 8000. Margin requirement will basically drop by half, so if you could trade 1 lot with 30k, you will need 15k to trade 1 lot from now.
Hello Nithin,
As the market is going up after elections i see that the margin requirements are also going up for trading futures & options.
In many cases the margin requirement is illogical and ridiculously high.
Few days back you had invited for feedback from trading community which you will pass on to the stock exchanges – can we give this as a feedback to reduce the margin requirement to logical levels? Is there any relief we can expect in near future from margin requirement perspective (specially on Nifty f&o)?
Thanks a ton
Yep, we have already sent this to the exchanges. As you are probably aware, the lot size of Nifty is reducing to 25 by October 31st.
Thanks!! I hope NSE will do something soon to reduce these ridiculously high margin requirements.
I was not aware of the change in lot size of Nifty.
What will happen to Nov & Dec contracts which are in lot size of 50? Will that be split as 2 lots automatically?
Also reducing the lot size will only reduce the entry barrier but the cost of trade will still remain high due to high margins rite?
Check the circular here: https://zerodha.com/marketintel/Circulars/ , yes 1 lot will be split into 2 automatically for Nov and Dec contracts. Margins will also automatically drop per lot, as in you will be able to trade 1 lot with around 15k in your account.
Kindly explain the loss for the following Intraday Trade as I am a beginner in this field.
1.Scrip – Tata Steel – NSE –
Buy Amount with Margin (as per your Intraday Margin Calulator 9x) – 120 nos – 54876.00, Sell Amount – 54660.00
Dear Nithin
let’s say I trade in options of two different companies A and B (e.g. TCS and INFY) in the following manner:
For the sake of simplicity let’s say both A and B today trade at Rs.500 each, lot size is 1000 shares.
At the beginning of the month:
I sell 10 ATM CE contracts of A for a premium of Rs. 20/option = receipt of Rs. 2Lacs in premium and margin blocked (total, SPAN + initial) is Rs. 10lacs
I buy (at the same time as above) 10 ATM CE contracts of B for a premium of Rs. 20/options = I pay net premium of Rs. 2lacs. Since I’m long CE options here, there is no margin; also there is no margin benefit.
Now let’s say I hold the two for the till the middle of the month (say 15th) and the prices of stock for A and B are Rs. 110 and 112 respectively.
Clearly the margin that I paid initially for shorting CE options in A is completely eroded because of the increase in prices BUT at the same time I have made a lot more money in options for B. Also volatility for B prices is more.
My question is:
Would I get a margin call in the above scenario if I haven’t liquidated any of the two positions on 15th, or would my unrealized gains in B cover the risks on my short options in A (to some extent at least, if not to the fullest extent)?
Vinayak,
Yes, you will get a margin call because you won’t be having any funds to hold your short call position. Your profits from B is just notional and hence won’t be good to cover margin requirements for A. Also, exchange will charge a short margin penalty if you hold position without the minimum SPAN margin in your account.
nitin
if i short a particular option with leverage,how many days can I keep the position.
Dear Nithin
I believe total margin is SPAN margin plus additional margin (RMS margin) – I believe the SPAN is calculated based on volatility and VaR and mandated by exchange; how is RMS margin calculated at Zerodha?
Also on related trades (e.g. selling a CE option covered by purchase of future contracts) SPAN calculator shows there is a margin benefit; does a similar margin benefit apply to RMS margin as well?
I’m talking about conditions where options/futures are held overnight (NRML trades; not MIS)
however one other question – is the RMS margin different for NRML and MIS trades?
SPAN and Exposure margin, the margin benefit is usually only on SPAN in case of hedged positions.
Hi NItin ,
I Have a small query regarding margins
Suppose I wanna buy nifty future oct 1 lot I shld have margin of Rs. 31661
I wanna sell nifty future nov 1 lot I shld have margin of Rs. 31661
If I buy and sell both together i need to have margin of Rs.8109
So my questions are
1) If there is Rs. 15000 in My account can i take both the positions
2) Suppose next day nifty is up by 20 points at 10 a.m.and i bought nov futures and close the Position of nifty nov futures . and i waited till 11 a.m. by that time nifty was up bu 50 points and I sold my oct nifty position . Now during 10 a.m. to 11 a.m. I had only one position i.e. Oct. nifty and margin required for that is around 32,000. Once I clear One Of position from above do I immediately need to deposit the margin or how will It go? Can you please explain In detail.
1. No, you will need atleast 31k to enter the positions as the margin required to enter the first lot is 31k.
2. Yes, if you exit one of the positions in the spread contract, you will need enough margin to hold the other. If not, the positions could get squared off by our RMS team immediately.
Just want to ask why the margin for cover order for Futures has been increased recently,it has been doubled for each lot, I really love Zerodha for initiatives like crowd.in etc but with this change iam really disappointed..iam a high frequency trader,for me margin and lot size is everything.. i trader with lot of brokerages like angel,infoline but i find Zerodha is the best..but with this change iam really disappointed
Yogesh, which stock are you trading on? We increase margins usually if a particular stock becomes extremely volatile.
Most of the stocks like india cement,oriental bank of comm,justdial,crompton,jubfood…they used to show for 1 lot as 9000 or justdial it was 4000…now they are showing as 24000,31000 it is almost 2-3 times you have increased..it was done couple of days back..Please look into matter as it hampering my trading plan.may i know the reason why do you increase the margin when the stock becomes volatile or Could you introduce a product for High Frequency trader who trade intraday with less margin for F&O with a monthly plan of 1 lakh like that..it would be helpful.
Yogesh, you must have mistaken, just double checked margins have not been increased in the last 2 months.
hi,
i wish to know how can i sell stocks before they come to my DEMAT account. Is it possible ? And what happens to the funds ,do they reflect in my trading account as soon as i sell stocks . for eg i buy 100 shares of reliance on CNC order(Delivery) , now can i sell them on the same day or next ,before they hit my DEMAT account. if yes, then can i trade on the same day again with the money from the proceeds of selling those shares.
thanks
Yes, you can buy and sell using CNC during a day, it will be considered as an intraday trade, yes the funds will be available immediately along with the profits you made or minus the losses you made on the trade. Yes you can buy CNC and sell next day, this is called BTST/ATST. Check this post
Hello Nitin, I have a query regarding margin provided. My friend opened a trading account with a broking house, where only 6500 margin is required to sell an out of the money NIFTY call. Is ZERODHA also thinking of reducing margin requirements?
This margin you are talking about must be for intraday, because for overnight position, exchange has set a minimum otherwise which a penalty is levied, immaterial of which broker you trade with.
Check our SPAN calculator, to short a 8500 call overnight margin requirement is around 24k, so intraday is around 10k. If you use cover order/bracket orders, you can trade the same for around 7500.
Yes you are absolutely right. I was misinformed.
However, I went through the details and observed that there is a difference between zerodha and other brokerage in following scenario:
Current Nifty 8100 –
Sell 8600 Calls + Sell 7600 Puts
Zerodha charges – 48,906 Rs total.
However the other brokerage charges ~ 20000 Rs. Note that this is not intraday margin.
Is it that they are charging only one way considering that there could be risk at one side only?
Kailas, margin required for holding positions overnight is as stipulated by the exchange and there is be a penalty in case it is blocked lesser than what exchange says. My guess is that you are comparing with what the other broker is charging you for intraday with ours which is for overnight.
i am newly registered clinet. i am asked to payin 5000 to 6000.can i use that 5000 to 6000 initial deposit for trading fully? what are restriction? please expalin
You can use the 5000 to 6000 to trade completely. No restrictions.
I read in one other blog that if we dont maintain the required total margin then NSE will charge a penalty at 1% of the amount by which i am falling short from required margin.
Can you please throw some light on this? How does it work? Is it 1% per day?
As per NSE rules if the margin in your account is below the SPAN margin requirement, there is a penalty of 1% per day.
Thanks, so this penalty is not applicable if my margin is above SPAN but below total margin rite?
Thanks
Yep.
Hi Nithin,
One more question –
If i want to enter a F&O position which say requires a margin of 10k (SPAN – 8k, Exposure – 2k) but i have around 9k in my account.
Now i take the same position Intraday so the margin blocked is about 40% of Overnight position i.e. around 4K.
Before the market closes i plan to take this position overnight, now the cash in my account (9k) is more than the required compulsory SPAN margin of 8k but less than the required overall margin of 10k.
Will i be allowed to convert my intraday position to overnight, with total cash of 9k in my account?
Thanks in advance.
Regards
Sukesh, you will need the entire 10k
Thanks for the reply, so if my understanding is correct –
I have to pay up entire margin amount (SPAN + Exposure) when I enter the position.
However once I enter the position, in case the position goes against me, I would be allowed to keep the position till I touch the SPAN requirement levels which is around 80% of the total margin requirement.
If the position makes further losses (does not maintain SPAN requirement) then chances are your risk management team will square off my position?
Yep
where i can see the current market price for buying cover order
As in? you can see the market price on the marketwatch.
Hi Nithin,
Your system blocks margin first on pay-in, then on pledge. Due to this, pay-in money is blocked and not available for withdrawal even when margin on pledge is available. My customer ID is: RM0079
Highlighted this twice to your support staff, but the response is the same. My experience is that your support staff is only trained to provide standard answers (copy-paste), and not to look at exceptions or to forward exceptional queries to knowledgeable people.
Let me have this checked, we have just reworked on our collateral margins, so ideally should not happen.
Hi,
On the ledger, the margins that get blocked is on the cash balance. However when we are processing payouts, we will block only 10% of your total margin blocked in cash while the other 90% is blocked out of collateral margins provided you have sufficient collateral margins. After blocking 10% from cash balance, if there is any extra cash in your account, you can withdraw the same.
Assume:
Cash Balance: 32,000
Collateral: 3,45,000
Margin blocked for position taken: 1,23,000
If you view your ledger, you will see a negative balance of 91000. However while processing payouts, we will only block 10% from cash. In this example we will block 12300 (10% of 1,23,000) from your cash balance leaving you with a withdrawal balance of Rs.19700 (32000-12300)
Venu ji,
Firstly, there was no need to write my name in your response, when I have not mentioned it in my comments. Client confidentiality should not be taken lightly.
Secondly, nothing irritates a client more than highlighting the same thing multiple times and receiving standard responses even after highlighting to the CEO. If you had gone through my specific case, you would have known that: (1) I have pledged Liquid Bees where the 10% blocking does not exist
(2) the screenshot I sent to [email protected] clearly showed that the withdrawal amount is more than the account balance, but while withdrawing the amount, there was an error saying that “Insufficient Equity balance!”. The withdrawal amount shown was correctly shown, but the system did not allow me to withdraw even 2/3 rd of the amount shown there, which meant there was a system problem
(3) as of yesterday night too, the situation in (2) remains, ie, the withdrawal amount is more than the account balance, but while withdrawing the amount shown in withdrawal amount, there was an error saying that “Insufficient Equity balance!”.
(4) if you take my account detail and manually calculate, you will have the same conclusion.
Hi,
Did have a look at the screenshot. However we aren’t able to replicate the scenario. Ideally you should not have faced any issue whilst placing the withdrawal request. While we checked in the test servers, the withdrawal request was going through.
In case you face this issue again, please shoot an email to [email protected] and I’ll have this checked immediately & will fix it once and for all in case there are any issues.
Thanks for these detailed explanations on margin policies.
I have few simple queries
1. For Intraday Equity trading, the Equity calculator page gives only around 239 stocks in that list. (Leverage of 3 to 10 times). I am sure that so many stocks could’nt be offered leverage. So the stocks which are not in the list, can I consider as 1x leverage. I mean I will buy stocks which are not in the list as MIS product type, provided I have sufficient margin in my account to cover for the entire cost of shares. (as if like CNC, CNC brokerage and charges are higher, so if I am sure I will sell those shares within the day, I can go with MIS fetching low brokerages)
2. These margins 3x, 6x , 9x etc are zerodha specific margins or it is common between all brokers (as if stipulated by NSE)
NSE provides Equity Calculator, with VaR margin etc., and says margin requirement varies everyday based on volatility. So Is zerodha margin calculation also varies in real time/every day or it is frequently changed at regular intervals. If so what is the interval. When is the last time the 239 scrips updated for the margin it is showing currently.
3. For example, if NSE gives margin around 5x and in zerodha margin page it shows only 3x (Is there a chance for this, I dont know, since NSE margin requirement varies every day), will my order gets executed even if I place 5 times the margin I have in my trading account. Will zerodha platform by itself will check for margins before placing the orders to NSE? Or the orders get placed and NSE rejects the order if it fails to meet the NSE margin requirement? In later case 5x may get executed.
1. Yep
2. Zerodha Specific, every brokerage will have a different policy based on their risk tolerance. This has nothing to do with NSE VAR, we have our own internal formula to calculate it. Changes only at the end of the day, usually a change only if there is tremendous volatility in a stock.
3. As I said, there is nothing called NSE gives margin. When you buy or sell stocks, NSE will ask for the entire money or entire shares respectively. Because you commit to trade intraday by using our product type as MIS, the brokerage gives you the additional leverage.
Understood. Thanks. Very clear explanation.
So for stocks which I have bought under 9x for example, (margin amount blocked say 5000, and I dont have any margin left say my margin left is only 50 rs after blockage, If I make a loss in that MIS stock of more than 5000 or 5050 (which one I dont know), will the stock be automatically squared off by zerodha? Is some team monitoring for this square off or it is done automatically by the system.
I know the leverages are calculated based on volatility and there is really a very rare chance I make a loss of more than the margin which got blocked. Still wanted to know what would happen in such case.
Square offs will happen when you lose 70% to 80% of your capital, so with Rs 5000 you lose 3500, the position will get squared off. Our Risk management team monitors this.
That clears it. Thanks
I want to do calendar spread in futures in nifty , difference between august and september nifty is 50 and i bought 10 lots of nifty (500 ) and i expect the price to reduce , suppose price reduced to 48 , my position will get automatically clear on falling of price or i have to do something else?
Hi,
Wanted to know whether the margin created by pledged shares can be used for delivery of Future & options or not. So suppose one has pledged shares worth 1,00,000 and after haircut the margin amount available is 80,000. If then one writes an option with margin requirement of 60,000, Can that position be carried without adding cash margin or Will it be squared off at 3.20 p.m if no additional margin is given?
Yes can be used for both intraday and overnight positions in F&O.
In cover order calculator under cds future segment it show (Margin required Rs 0) when i choose eg:- EURINR DEC 2014. what is mean by that…
Great post Nithin. Thanks.
can we do penny stocks in intraday (mis or co)
Viki, if any stock is in T2T category (like penny stocks), you are not allowed to trade intraday on them as per exchange compliance requirement. So no, you cannot use MIS or CO.
Hi nithin,
Suppose I am buying 1 lot of nifty of October expiry.And say the amount is 30K.And I have 31K in my a/c.So my question is that whwn my MTM exceeds -1K will it be squared off automatically or is there any idea of MTM=80% total vavailable cost (if so what will be considered as available cost 31K or 1K?)
Sayan, exchange puts a penalty in case the margin in your account drops below the SPAN margin requirement. For Nifty the SPAN requirement is around 19k, so we usually will square your positions off when it is around 15% above this level (so at around 22k for Nifty). You can see SPAN margin requirements by clicking on the PDF link Equity SPAN margin (PDF) on the right top of the table.
If nifty futures is at 7700 , and i buy call option that nifty will remain above 7500 , is it possible ?and then what if nifty close at 7600 but above my target of 7500 , but the question in my mind is that when nifty is at 7700 , then if i paid a premimum of 100 rs to buy call option at 7500 , but if nifty close at 7600 ( above my target) premimum falls to 90 , whether i still remain in loss , even if nifty close above my target?
Nishant when Nifty is at 7700 and you buy a 7500 call it will be trading at a minimum of Rs 200 (if it is early in the month as much as 300). So if you buy it at say 250 and if Nifty closes at 7600, the 250 will be come 100 and you will end up losing 150 points. You need to start from complete basics Nishant, try to search for some online course on F&O, You can also take the NSE derivative market courses, check this.
hi nitin, suppose nifty futures is trading at 7700 and i buy a call option that nifty will rise before expiry date and premimum at that time is 80 rs , first what actuaal amount i have to pay to buy 1 lot of nifty , and suppose nifty does not rise before the expiry then what are my losses if nifty falls to 7600 , any estimate how much premimum will fall if nifty goes to 7600 , if the premimum is 80 at 7700
Rs 80 x 50 = Rs 4000 is amount required to buy 1 lot, if nifty falls anything lesser than 7700, your option premium will become 0 on expiry, you will loose the entire 80 Rs
HI, these tools – margin calculator / span calculator should be easily locatable from your home page. (am sorry, if i missed to locate it 🙂 ) currently we need to search (either in google / in your search box) in order to land to the necessary link, which will pose a problem for the users
Hey Ravi, we are adding so many tools that we have decided to dedicate a page completely for that, our technology page http://zerodha.com/technology.
Hi Nithin, Thanks and yes i saw that.. However https: // zerodha.com/ margin-calculator/ Equity/ link is missing there (Margin Calculator link). Currently i could only access it by coming to this blog and then clicking on the link that is provided in the blog. It will be good if you have this shortcut also in the technology page (along with other calculators you have there like SPAN, Brokerage Calc etc)
Let me know if i missed anything
ahh.. got your point, equity is part(separate tab) of the margin/SPAN calculator,
thank you sir
hi sir,
If i am buying 125 SBIN equities and selling 125 SBIN futures, what is the required margin?
For buying SBIN equity you will need 100% money and for shorting futures you will need the futures margin for 1 lot. You don’t really get a margin benefit on this.
as per the span margin calculater, i need 48000 rs margin for my positions( for buying and selling some options). i traded it intraday basis by using the basket order, so the required margin is 48000 X 40 %=19200
as per the span calculator. but in the trading platform rejected my order and asking a 30000 margin. what is the reason?
Dins, SPAN calculator shows you the margin requirement after taking all the positions. So, if one of your positions is giving you a margin benefit, you get this only after taking the positions. Don’t use the basket order, and place each one after the other, and it will work. The other thing is, if you want to execute using basket, ensure that there is extra margin to take care of individual orders, once all positions are taken, the margin blocked will be as on the SPAN calculator.
will that be ok if i first sell the scrip in futures and instead of buying i square off the position so that my order of buy automatically get filled at the price going on in exchange on buy side ? and as i know that market type order get executed immediately on exchange at the best possible price { will it be possible that a sell market type order, when the scrip is trading at 1234 will get sell at 1230 or even more less }
sir , there are three expiry months and month of july is in process , is it possble to buy in the month of july , the stock of august expiry date and sell it on the same date on intraday basis? ILLUSTRATION { suppose today is 13 july and on this date i bought HDIL share of august expiry and sell on the same day and took profit } sir why there is so much difference in price of same share in july expiry and in august and september expiry , sometimes there is even a difference of 6 to 7 rupees? how can arbitrage be done on the same share in three different expiry {sell the september series and buy july series of same share?
Nishant, I guess you are just getting started and suggest you to read something on futures pricing. Check this out: http://tradingqna.com/2652/futures-there-different-rates-different-expiry-dates-future?show=2652#q2652
sir, the fact is that i does not understand the link , please request to you to answer my query in simple language and not from links, i hope i am not disturbing you by asking questions again and again?
Nishant, your question is quite broad and I will have to explain you from the basics of pricing on futures. Check this, you have a link to take a course in intermediate modules called Derivative markets dealer module, read this module up and you will have a better understanding of how futures pricing works. But what I can tell you is that calendar spreads (buying one month futures and selling another month futures), might seem like an opportunity, but what you need to understand is that if something seems too easy to earn, the opportunity probably never existed.
This said, we at Zerodha are starting a new online education initiative to help people get started and learn from the basics.
hi, sir new to zerodha .,want to arbitrage in futures by buying in one expiry date and selling in another expiry date? will it be possible on intraday basis?{ example buy one lot in july expiry date and sell in september expiry and whether MIS product can be used or NRML product will be needed?
If you are buying/selling in different contracts, you can trade either using NRML or MIS, no issues at all.
sir,what is the concept of buying in cash market and selling in futures and how it works and after buying in cash market and selling in futures ,wheher our transaction is completed and we need to do smething else? and same thing in first selling in futures and then buy in cash market? sir ,it is a humble request to introduce your software on apple products because i have spend money to buy another laptop to deal with your company sir,
Nishant, what you are talking about is also called Cash Future arbitrage. If the difference between the stock price and futures price is different from the theoretical price, then this strategy can be employed. So if Reliance is trading at 1000 in cash and future trading at 1020, you can buy 250 shares of Reliance and Short 1 lot of Futures. On the expiry day both cash and future will be trading at same time, at that time the idea is to reverse this trade and earn Rs 20 as profit. Check this post.
Nithin sir, what is margin in stock futures in NRML and in MIS . suppose i bought lots of a share worth 1000000 rs , how much i have to paid in NRML and how much in MIS?
Nishant the list is here: https://zerodha.com/margin-calculator/Futures/
HI,New to zerodha some clarification needed bought one lot of DLF future on 02/07/2014
in Normal mode and carried it next day,as market was not favourable sold DLF on 03/07/2014 under MIS mode…now what has happened here is system has again bought DLF lot at 3.20 pm…
means my DLF position from previous day is open and to exit this position what should i do?
Rajas, whatever is bought or sold as MIS gets squared off as an intraday trade. So you will be still holding 1 lot of DLF in your account. You can exit that only tomorrow, but from next time if you have bought as NRML, make sure to sell as NRML itself.
Is there any possibilities of linking MT4 as Zerodha’s platform?
MT4 doesn’t have exchange trading capability, so not possible.
Hi What is the cutoff time to square off position in MCX on expiry day. For eg.., if I hold a June contract expiring on 30.06.14 by what time I should be squaring off this position?
Senthil, check this link.
sir , whether zerodda trading platform can run on apple Mackbook air ?sir if we first sell in MIS product and want to buy later and cannot buy, can we convert the selling stocks into CNC and hold them and will buy the same quntatity stock later at lower price?
No Nishant, presently it doesn’t work on MAC.
Nishant, like I mentioned earlier, you can’t hold a sell/short position in equity for overnight (if you want to, you will have to use futures). To convert from MIS to CNC on a short trade, you will need to have the stocks in your demat and if you don’t, you can’t convert.
Assume you shorted 10 shares of Reliance in MIS at 1000 and stock price went to 1010 making you a Rs 100 loss. To convert this to CNC, you need to have the 10 shares with you in your demat, otherwise you can’t. If you sell a share and hold it overnight, you will have to give delivery of the share to the person who bought it from you, so if you don’t have the shares in your demat, you will not be able to give delivery and hence not allowed
the response to a query dated May 13, 2014 by Sukesh seemed to suggest that it is possible to take a short position even with just SPAN margin…just wanted to re-check if i understood that correctly. Do understand that margin of safety would be lower and position exposed to square off if SPAN margin is disturbed.
Can i initiate a Nifty options short position with 100% SPAN Margin, but lower exposure margin – say, 25-50%.
No Amit, you will require the margin as required(SPAN +Expo) to initiate the trade, but we will let you hold the position until the margin doesn’t go below SPAN.
I would like to know more about the share market , what is equities and F&O, Commodities,Cash so how can i learn everything as a beginner please suggest me
email to
[email protected]
Thanks
Kiran
sir , thanks for your reply , sir one thing more on CNC , if we first sell and want to buy later , whether there is any time limit to buy the shares or we can buy it at any time?
If you are trying to sell as CNC, you need to have shares already in your demat account. If you have it and sell it, you can buy back anytime before 3.30pm
Hi, can i buy debt securities and mark a pledge on them for meeting margin requirements (after applicable hair-cut) for carry forward option sale positions
Presently you can trade on debt instruments, but can’t place them as a pledge because of liquidity issues. What you can do is use Liquid BEes for this, you can check the product note on liquid bees for this.
Thanks for the quick reply Nithin. Problem with Liquid bees as margin is that i effectively end up taking a long position on the market – i would ideally like to avoid such risk. How about a reasonably actively traded debt security like Nhai bonds?
sir,as we know that in MIS we can first sell the share and can buy the share even after selling,sir suppose if i first sell the share at high price and want to buy the share at low price in MIS product and share does not reach at that specific prize on which i want to buy , can i convert that into CNC product {though i have first sell the share and want to buy later}
You can convert if you only have the shares that you sold first in your demat account. Because whatever is sold and if you keep the position overnight has to be delivered to the exchange.
sir ,thanks for your reply . sir ,is equity intraday trading is more profitable or commodity trading and whether doing commodity trading is difficult.
Nishant, do ask generic market questions on Trading Q&A, check this question out.
sir ,full money means if i have 50000 rs in my trading account and margin limit is upto 5 times and i bought a single stocks of NHPC for 250000 rs and before square off at 3:20 pm {automatically} i have full stocks of NHPC which i have bought earlier for 250000 rs at lower price and cannot sell due to low price ,i can convert that full stock from MIS product into CNC
No, you can only convert 50000 worth of stocks to CNC
Nithin sir ,thanks for your answer sir.Sir please tell me if i buy stock in intraday trading and price of the stock falls so much that i cannot sell it without making loss sir and as it has to be square off before 3:20 pm ,sir can i convert that sell order into CNC and hold it for unlimited time .
Yes you can convert MIS to CNC before 3.20 pm, but you need to have full money with you to do this. So if with 10,000 you have bought for 25000, you can only convert 10,000 worth of stocks to CNC.
Hi Nithin,
I am both Zerodha and ICICI Direct user. ICICI Direct provides a intraday feature called OptionPlus only for Nifty ATM Options. In this, you can buy or sell ATM options with margin requirement of 40%.e.g. if i sell 7500 call 100 options at 100 rupees, I will need Rs 4000, same for buying it. One has to mention SL while entering the order which is a market order, and on that SL basis limit price is calculated which is generally 20% below/above the SL mentioned.
Considering that one usually keeps SL at 20% in options, and another 20% for limits calculated by broker, its very safe to provide trading margin with 40% of capital for intraday option trading for ATM options( strike points within 200 point range of current Nifty Spot Price). I understand that for OTM options this can be risky for broker as values can increase/decrease suddenly but for ATM options 40% is very reasonable margin requirement.
Request you to consider this at this is very useful feature to use intraday and I don’t want to pay heavy brokerages to ICICI!!
We have similar order types, Check out Bracket orders and Cover orders, we provide higher leverage if you use this. But we don’t provide intraday leverage for buying options, think it is just too much of a risk.
sir ,is day trading profitable sir ?
It is, but like any industry of skill (music, sports, arts etc), only a few people end up being successful.
sir ,suppose a limit order is placed 0f buy 0n 26.60 rs and at that time it is trading on 26.10 rs ,can we modify the price and bring it to 26.10 rs and whether position is same in case of sell also?
Nishant if you place a limit order to buy at a price higher than the market price, it will get bought at market price immediately. So in your case if the stock is at 26.1 and you place a buy at 26.6, it will get bought immediately at 26.1 and once executed you cannot modify the order.
hai what is the maximum margin that is provided by zerodha i heard that it is 10 crore or is there no limit to it
I have seen 1 crore as the limit however I still want a confirmation on what is the maximum turnover Zerodha allows for a margin transaction
Yes, 1crore per transaction.
Dear Sir,
Good Morning
I furnished the details below. I request your good-self to clarify the same pls. Based on that I will workout a strategy for real time trading.
Chosen Scripts for Trading: CNX NIFTY FUTURE
Mode of Trade: INTRADAY (Either Buy & Sell Or Sell & Buy)
Capital Investment : Rs.1 Lakh
Risk Management Upto: Rs.20,000 (In a day)
Pls. clarify:
a) I would like to square off @ 3.00 pm, Is there an option like automatic square off?
(Can I use it for either Buy & Sell OR Sell & Buy)
b) What is the Maximum Qty that I can trade at one time in a day? How to work it out?
(Is it based on the Risk Management value or Capital Investment value)
Pls. explain with example….
c) Dealer’s Exposure in details for Intraday?
Pls. explain with example….
d) Overhaul Maximum Trading Qty (Including both My Capital + Dealer’s Exposure)
Pls. explain with example….
e) If Margin is applicable means, What kind of margin? How much do I need to pay? What I suppose to
do?
f) How much brokerage, Taxes & Duties & Other Charges?
Pls. explain with example….
g) Is Break Circuit applicable in CNX Nifty Future? If so then how to manage it?
Will Automatic Square off works, during this time or not?
Thanks in advance,
Kumar.
a. Auto square offs happen at 3.20pm, if you use the product type as MIS while placing trades. You can’t specify a time other than this.
b. margin for Nifty is 30k if you are using NRML and want to hold it overnight. So with 1lk you can trade 3 lots.
if you use product type as MIS instead of NRML, you can trade for intraday with 40% of 30k, which is around 12k. So you can trade 8 lots, but everything gets squared off at 3.20pm.
if you use Bracket or cover order, your margin requirement will be based on the stoploss of every trade. But will be around 10k, you can trade 10 lots, again square off at 3.20pm.
Check out our SPAN calculator.
c. No concept called dealers exposure, the above rule is for everyone.
d. Not applicable.
e. poing b explains the same, you need to have Rs 1lk in your trading account, that’s it.
f. Check out our brokerage calculator and charge list.
g. Didn’t get what you meant by break circuit .
thanks sir for your reply ,sir if i placed a buy limit order 87.20 and my order did not get executed due to price time priority principle ,but if price of share falls below 87.20 (suppose on 87.10),whether my order will get executed immediately or again that price time priority principle apply on this.
if price comes below 87.2, that means all limit orders would have got filled at 87.2, only then will the price move lower. So that means if price goes below 87.2, you can be rest assured that your pending order is executed.
suppose a limit order is placed sir and it is submited to exchange for confirmation ,after submittion and before confirmation can a limit order be cancelled?
No
sir,i want to open trading account with your company , please tell me the formalities and sir in MIS product leverage is provided in stocks , whether your company charge for the leverage provided on the actual amount and is yes then how much and can i trade in a single stock for many times in a single day
Nishant, either call us on 080-49132020 or visit our website and leave your contact details here for a call back http://zerodha.com/open-account, someone will call back and help you out.
We don’t charge anything for the leverage provided for intraday.
Nithin sir , supoose i am using MIS product in intraday trading and places a limit order ,(buy at 100.10 rupees and sell at 100.60 rupees ) and as there is great fluctuation in stock ,how much time share has to stay at my specefied price for its execution.
Nishant, Check this.
is it possible to use margin intraday square off product without using the margin product that is only using our actual amount only
If you use MIS you get margin by default.
thnx for prompt reply,
i hope u will provide mutual fund trading very soon and also allow it to use as collateral.In this way whole process will become seamless as stocks.
sir cud u pls write a post on pledging mutual funds to provide collateral margins and how to accomplish this process online with minimum charges?
this would be beneficial to most of ZTraders as one can earn more or less constant interest on at least 70% of capital by investing in liquid funds.
sir will u provide mutual fund trading in future?
Ashish, presently we are accepting only stocks and ETF’s. Yes we will start mutual funds very soon.
this is how it works for stocks and ETF’s
Zerodha gives margin to its clients for the securities held in their demat account. The way it works is, the shares would move from your beneficiary account to our (Zerodha) beneficiary account through an Off-Market transfer which you have to initiate and in turn these stocks would be moved to the margin account. We would then provide you margins against these shares after considering NSE VaR margins and your limit would be enhanced on your trading platform. Whenever you wish to not receive these margins, you can just send us an email request to withdraw the securities held in our beneficiary account and we would in turn move them to your beneficiary account. The whole process would cost you Rs 60/- per line item regardless of the size of your transfer/scrip.
Please note that at all times you would continue to remain the owner of the securities that you have transferred and hence would be eligible for all corporate benefits, whatsoever. Such corporate benefits would be passed on to you.
Please note that Collateral Margins can be used only to take positions in F&O Segment and not any other segment. Every broker does this as a value-added service and not necessarily as a money making process. We understand that not all clients can bring in cash to trade and since securities are assets, we could give margin against such assets for the client to trade.
**To avail collateral margin facility on your holdings, you need to transfer the shares to our beneficiary account. As soon as the shares are transferred, you’ll get margin against those shares after the exchange prescribed haircut. For example, if you have stocks worth Rs. 100,000 in your account and if the exchange prescribed haircut is 15%, then the collateral value of your stocks will be Rs. 85,000.The Cash-Collateral proportion in your account for the position held by you will always be calculated in the ratio of 10-90. Accordingly, to utilize the entire 85,000 collateral benefit you will need to have a minimum cash margin of Rs.9444/- (85000*10/90).
thnx for prompt reply,
i hope u will provide mutual fund trading very soon and also allow it to use as collateral.In this way whole process will become seamless as stocks.
Dear Sir,
Good Afternoon!
I furnished the details below. I request your good-self to clarify the same pls. Based on that I will workout a strategy for real time trading.
Chosen Scripts for Trading: CNX NIFTY FUTURE
Mode of Trade: INTRADAY (Either Buy & Sell Or Sell & Buy)
Capital Investment : Rs.1 Lakh
Risk Management Upto: Rs.20,000 (In a day)
Pls. clarify:
a) I would like to square off @ 3.00 pm, Is there an option like automatic square off?
(Can I use it for either Buy & Sell OR Sell & Buy)
b) What is the Maximum Qty that I can trade at one time in a day? How to work it out?
(Is it based on the Risk Management value or Capital Investment value)
Pls. explain with example….
c) Dealer’s Exposure in details for Intraday?
Pls. explain with example….
d) Overhaul Maximum Trading Qty (Including both My Capital + Dealer’s Exposure)
Pls. explain with example….
e) If Margin is applicable means, What kind of margin? How much do I need to pay? What I suppose to
do?
f) How much brokerage, Taxes & Duties & Other Charges?
Pls. explain with example….
g) Is Break Circuit applicable in CNX Nifty Future? If so then how to manage it?
Will Automatic Square off works, during this time or not?
Thanks in advance,
Kumar.
[…] Before we go ahead with this topic, please read this blog on Margin Policy. […]
So Nithin
When can we expect the intraday margin back to 9x..?
As soon as the volatility dies down after tomorrow, once the news is out.
Hi Mr. Nithin,
Hope all is well on your side.
I had an issue with a recent trade that I executed.
I initiated a call spread on the 9th of May 2014. I bought a May 2014- 7000 call at Rs 228, and I sold a May 2014- 7250 call at 133.8. The daily MTMs are given below:
12 May 2014 – 7000 call closing price – 289.3, total profit- Rs 61, 7250 Call closing price – 173, Total loss – Rs 39.2, net MTM- 1090 rs
13 May 2014 – 7000 call closing price – 291.3, total profit – Rs 63, 7250 Call closing price – 158.3, total loss – Rs 24.2, net MTM – 1940 rs
14 May 2014 – 7000 call closing price – 305.1, total profit – Rs 77, 7250 Call closing price – 172.55, total loss – 38.75, net MTM – Rs 1912
15 May 2014 – 7000 call closing price – 327.7, total profit – Rs 99, 7250 Call closing price – 196.65, total loss – 62.2, net MTM – 1840 Rs
On the 16’th of May, when I looked at my account cash limit, I had a negative account balance of -4500 rupees. I called the Zerodha helpline and tried to explain that I should be Rs 1840 in the money, not Rs 4500 out of the money, but I think the person who answered my call couldn’t understand my query and he kept saying that I had to deposit money in my account ASAP.
I don’t know why this has happened. Shouldn’t the profits from open positions be added to the losses to find net MTM ?? Please explain why this has happened.
Awaiting your response.
Hi Murtaza,
When you short an option, only margins get blocked. There is no “Mark-to-Market” that happens on a short option position. Assume you buy a Nifty call option at Rs.100, and if on that day it closes at Rs.120, you will NOT be given credit of the Rs.20. The credit is realised only if you sell and close the long option position. Similarly if you short an option and are in profits, such notional profits will no mark to market. Only realised profits reflect on your ledger for options. Mark to Market happens only for Future positions.
Hi Mr. Madhav,
What about losses on short options ? Are they deducted from from our account ? Because if I have executed a spread order, the loss on the short contract will be compensated for by the profit on the other contract.
Awaiting your clarification.
Regards,
Murtaza Telya
Hi Nithin ,
Why the margin limit is decreased from 9x to 6x.
Volatility expected in the markets with the results day after tomorrow, we have to be safe as a risk management team
Hello Nithin,
Can you please confirm if the below points are correct:
1) SPAN margin is the compulsory margin that is required to take a position, without maintaining the SPAN margin i can not take OR sustain a position.
2) After taking a position, i can keep my position even if i fail to maintain the Exposure margin required (May be because the position went against me after i took the position).
3) After taking a position, if the margin i maintain goes below the SPAN requirement, my position will be immediately squared off.
Thanks
1. Yes
2. Yes
3. Yes
🙂
Hi Nithin,
Thanks for your confirmation, that gives me confidence that my understanding is in the right direction.
My next Question is regarding my Point # 3 – “After taking a position, if the margin i maintain goes below the SPAN requirement, my position will be immediately squared off.”
Question: How frequent is my margin requirement calculated? Is it real time or at the End of the day?
Like when is it determined that i am falling short of required SPAN margin so that my positions are squared off automatically?
Thanks
It is real time, and unless the market is very volatile most square offs would happen between 3 to 3.30pm. You can see the SPAN margin requirement on the trading platform itself after taking the position, and if you want to know the requirement before taking a position you can use our SPAN calculator.
Thanks again.. That leads to my next question again (I know i have lots of questions and might be bugging u.. )..
If i have a mixture of F&O instruments open in my account and the positions start moving against me, then which one will be squared off? Will all my open positions be squared off at the same time?
For Example, i have 3 open positions A, B & C.. I had sufficient margin when i opened these positions however as time passed it went against me and the margin requirement started to increase and the funds in my account were eventually not enough to even fulfill the SPAN requirement..
Now once the margin maintained drops below the SPAN requirement, which of my positions will be squared off first? A, B or C or All my open positions?
Sukesh, if we had to pick one among 3 open positions to square off, the RMS team would typically pick up the position which is making the highest loss. But all 3 positions won’t be squared off at one time.
Thanks.. The main reason for my confusion is because i am thinking which of my positions would be squared off if each of my positions are supporting other positions?
Say i have shorted a CE and a PE at the same strike price & going log on a future of the same underlying? Since each position is supporting the other 2 positions in some way how will a decision be taken on which position should be squared off if i am not meeting SPAN requirements?
Thanks
Sukesh, if you are holding positions that hedge each other, the SPAN margin would come down, check our SPAN calculator for the same. But yes, it is best that you are always on top of your account and square off positions that you want to, before our RMS team does it.
Hi Nitin
Have a query regarding spread benefit. I have bought say 200 sep2015 nifty futures and after couple of weeks would like to hedge part of my position. So I would like to sell 100 oct2015 nifty futures. I know I need to provide the necessary margin required for the sell order. After my sell order is executed, would I get spread benefit as I am hedging part of my position even though mine is not a spread order?
Yep you get a huge margin benefit by taking the spread position.
Hi Zerodha,
Currently MIS product in commodity requires only 40% of Overnight Margin.My suggestion is that the 40% limit may be little bit reduced (My Expect is may be 30%).It will give more opportunity to investors to trade and make good return.Other option is you may reduce this limit on request basis from the client. I agree that High leverage result in High Profit as well as High loss.Buy Disciplined Investor can efficiently use this leverage.
Hello,
My assumption was that whenever the price of underlying goes up so does the margin required to trade in that underlying in F&O, however even if the margin required goes up the average margin required OR cash required to trade (i.e, Margin – Premium i receive for opening the position/Writing Options) should have been constant because if margin required goes up so should the premium i receive thereby almost nullifying the effect of increase in margins.
However this logic doesn’t seems to be working these days. Am i missing something here?
Sukesh, when an option position goes against you the premium goes up which gets credited to you, but in essence this is a loss. So the margin blocked has to go up atleast by how much you have lost the premium, but the deeper the loss gets the bigger your position becomes and hence the margin required to hold this position goes up more than how much the loss you are incurring on the option position.
hallo!
I appreciate the care and precautions you are following. I have one query though on how are planning to address this.
We observe that when there is a panic in market and particularly when we see lower circuit or upper circuit, most of the brokers disconnect their terminals due to their own mistakes on margins. I saw only one of my previous broker terminal on.
Can you assure that such thing wont happen here. Otherwise we can take positions accordingly in other accounts.
I hope you will understand the seriousness of my worry and not misunderstand me otherwise. Please pardon me in that case.
As you would have seen we are very conservative in terms of risk, and we don’t get into any margin funding activity which usually causes trouble to most brokerages. Also our margin utilization levels never exceed 60%, much lower than average levels of utilization at other brokerages.
Thanks for reply. I appreciate. I was told about conservative approach by your team when I approached Zerodha. This made me feel secure.
For getting doubly sure I asked this.
Hence I shall consider then you are assuring us that such things wont happen here.
me also facing the same problem
since having scrips for more than 2.50 lakhs rupees in the cash account
not able to buy even for shares for rs 25000.00 intraday or delivery base
rather it should be allowed
this one day or two days leveraged should be adjusted against cash or funds transfer or cash position squared off on third day
this type of facility should be there
ie margin against stocks in the account
I have another account with IIFL they allow such type of margin trading and with this we easily built up our portfolio easily than with Zerodha
I wish and request Zerodha to provide such facility
regards
akveenu
Hi, For CNC trades it’s bit disappointing not have any margin at all, I am a offline investor and put multiple order after market closing at low prices , if I am lucky I get my order executed next day. Now just to place a order I need to have money upfront !! Is something can be done for this?
We have a plan for this, but might take a while.
Please try to implement some margins against overall DP holdings for delivery trades, I have many blue chips shares in my DP but not able to take any advantage of the same.
Prashant, all you have to do is send an email to [email protected] asking to pledge your stocks, and we will provide you the margin based on haircut mentioned here: , for every pledge/unpledge there would be a cost of around Rs 60/scrip immaterial of the quantity.
Hello Nithin,
One more question. I’m observing that the margin requirement in Nifty F&O is constantly going up.
Earlier i was usually able to write a Nifty straddle (Selling/Shorting both Put & Call at the same strike price) for about 35k (After considering the proceeds i receive for selling the straddle). However now the requirement has come up to 50k.
Is this a temporary phenomenon due to increased volatility because of upcoming elections OR is it due to the fact that Nifty is trading at very high levels now?
Can you also please let me know the factors on which the margin requirement depends on?
Thanks
Sukesh
Yes Sukesh, there are two things happening, Nifty is up almost 12% in quick time and margin has also gone up by the same quantum. Secondly, with the expected increase in volatility, the margin requirements have also gone up, and probably will go higher closer to election results.
Hopefully this clarifies.
Thanks Nithin, That Helps..
Due to higher requirement of Margin these days i’m finding it difficult to trade. Will the margin requirements go down once the perceived volatility stabilizes?
Also will the price level of the underlying play a role in the margin requirement? (Because i feel whenever Nifty is on high levels the margin required too are at high levels).
If this is the case it would be difficult for traders like me to arrange the margin amounts if the Nifty goes higher – Any suggestions to overcome this hurdle?
Thanks
Yes, of course when the price of underlying goes up, margin will also go up.
Nifty at 6000 , contract value 3lks, margin required @10% : 30k
Nifty at 7000, contract value 3.5lks, margin required @10%: 35k
Usually when the margins go up significantly, exchanges will reduce the lot size, for example when nifty was at 3000, the lot size was 100 and today at 6000 odd it is at 50.
Thanks for the reply but that’s a kind of bad news for my strategy 🙁
I’m not able to trade due to high margin requirements these days.
My assumption was that whenever the price of underlying goes up so does the margin required to trade in that underlying however as the margin required goes up.
My rationale was that the average margin required (i.e, Margin – Premium i receive for opening the position) should have been constant because if margin required goes up so should the premium i receive thereby almost nullifying the effect of increase in margins.
However this logic doesn’t seems to be working these days. Am i missing something here?
Hello Nithin,
What will happen if the position starts going against me and i don’t maintain the required margin?
If my understanding is correct – Once i fail to maintain my margin below 80% of requirement, my position will be automatically squared off?
Can you please confirm my understanding?
Thanks
Yes, typically at 80% of requirement is when you will be hitting the SPAN margin levels, and yes we will square off once the margin goes lower than this.
Hi Nithin,
This has confused me for quite some time, i seem to have understood it now.. Can you please confirm if the below mentioned working for a hypothetical scenario is correct?
I have margin of 40k in my account and no other open positions.
DAY 1: I Sell a straddle (Say Nifty 6000 CE & PE).
Margin Requirement for this position – 50k
Amount i received from selling the straddle – 15k
Net cash margin blocked in my account – 35k (50k margin required – 15k i received)
Available cash in my account – 5k (40k cash in my account – 35k margin blocked)
DAY 5: Margin required went down to 40k (From 50k 5 days back)
Now cash in my account would be 15k (40k cash which was already in my a/c + 15k sale
proceeds credited to my account for selling straddle – 40k current margin required)
DAY 8: Margin required went up to 60k
Cash in my account -5k (Shortfall of 5k to the required margin)
-> I have margin of 55k in place of required 60k. i.e, short by about 8.33% OR I have 91.6%
of required margin.
Question: Now my position wont be squared off even if i am not maintaining the required
margin – because i am maintaining above 80% of required margin right?
DAY 9: Margin requirement went up to 75k however total margin available in my account is 55k
i.e, 73% of requirement
Question: Now my position will be automatically squared off because the margin available in
my account is below 80% of the requirement right?
This clarity would help me a lot in starting my new strategy confidently.
Thanks in Advance
Sukesh
Yes to both your questions, when the margin goes below 80%, it is not a guarantee that we will always square off positions, if we see that the positions are hedging each other (like in your example), we would probably wait for longer to help our clients out.
Thanks.. Also i have read in some places that when losses reach 80% of capital the position would be squared of automatically. Can you please provide some clarity on this aspect?
Thanks
Sukesh, the rule of squaring off positions would depend completely on market conditions, so it will be tough to put an exact number on this. What I’d say is if the margin required drops less than SPAN (around 60 to 70% of the total margin), our RMS team can square off the positions.
Thanks Nithin!
Hi Nithin,
Suppose I have 50000 Capital. I purchase 1 lot stock future for 30,000 and 1 lot Put option of same stock as a hedge for 10,000 and 10,000 cash left. What will happen when stock fall by 10% next day. Zerodha will trigger selling my future at what price.. will it will be sold after loss of 10,000 in future as after that margin requirement will break or will they keep counting my Option value as margin as well. so Is it possible that it won’t be sold, if option price increase significantly and generate enough profit (>=loss in future).. Please explain.. Thanks!
Firstly if you are buying futures and buying puts, you will get a margin benefit, you can use our SPAN calculator to see that.
If you start making loss on Futures, there would be a notional gain on puts, so we will wait as we understand that puts are hedging your position is above the SPAN required (not the SPAN + Expo, but only SPAN) for this, once it goes below that we will probably square off.
Hi Nitin ,
If I Buy any shares with NRML type, and not sold on same day, then
1) How much money will be deducted from my the savings account linked?
2) and next day if Sell those shares agian using NRML type, how many days it would take to get the settled amount to be credited to my account?
3) would ther be diffrences in brokerage charge when we buy Equity first dat with NRML type and sell it on on next day again with NRML?
Akash,
Firstly, if you want to buy stocks for delivery, u need use the product type as CNC and not NRML. NRML is for trading F&O on overnight basis.
1. The money has to be first transferred to your trading account from savings, before you can purchase.
2. When you sell next day, money will come to your trading account in 2 days after you selling if you want to withdraw, but if you want to buy something else, you can do the same day.
3. Brokerage at Zerodha is Rs 20 flat per executed order or 0.1% whichever is lower for delivery based trading, so it won’t change.
Hi Nitin,
Thanks for the quick reply, Currently I am holding an account with diffrent campony demat account, I wasnted to verify the charges they are doing, so that I can close the account immdeialty if ther is any thing wrong.
On thursday(10th april) I had bought 700 shares of compony (per share is Rs 197) with NRML type , on same day I could not square off all the shares that I bought( in last minute I had kept sell order with market price, in which 363 shares transaction is not completed), When I check my linked saving account next day(11 th april) they have deducted around 12.5 k rupees from savings account, and next day I have sold the same shares with NRML type(363 which was pending from last day at Rs 198, I had called up customer care to know which type I should be selcting to sell the shares that are penidng on previous day, that asked me sell with NRML type),
however on next day i.e on Saturday from my saving account around 71.5 k rupees is dedcuted ( which I belive 197*363). Today since it is holiday for Bank and tradinng I could not connect to their customer service to know about the deduction.
My question was ,
1)What could be the amount 12.5 k which was dedcuted from savings account linked on first day
2) when I inquired couple of weeks back for NRML type, Cusomter service guys said if u dont sell shares on same day there will be some percentg of amount will be held (around 10%) , if so then next day why the complete amount 71.5k is again taken from savings account, why not around 59 k , if it converted to CNC (i mean 71.5 -12.5 = 59 k)
3)Since I have sold the pending 363 shares at the price of 198 ( (363*198 =71874) + 12500 = 84374), should I get the 84374 k amount back into my savings account by Tuesday/Wednsaday ?
I know it is long story , however I wanted to Confirm what they are doing is correct if not I need to close account immdiately to save my hard earning money.
Thank you in advance
Regards,
Akash
Looks like the brokerage you are trading with is either a bank or else has POA on your bank account also as money is directly debited from your bank account. It will not be possible to comment on the process followed by the other brokerage, it will be interesting if you can fill us in, once you have the complete details on this in the next few days.
can auto-squared off time be extended further.
3.20 is already quite close to 3.30, and we will need 10 mins to be prepared for days when there might be issues with auto square offs.
Is the same process for Future selling also? But i read the article. If i sold for Rs. 100 next day it close too Rs. 80. I have to pay 20 rupees from my pocket. and after the day its closes to Rs. 75. I have to pay only 5 rupees from my pocket compare to previous close
What is logical behind in this? Why should not i have to pay 25 from account. only 5 rupees.
Nithy,
Futures have what is called as daily marked to market. So assuming you sold at Rs 100 and today it closes at 80, R 20 is paid to you as profit. Next day if it closes at Rs 75 you get paid Rs 5 because you again make a profit (since you are short, you make money when market goes down). If assuming the next day it goes to Rs 85 ( since you are short, u lose when market goes up), you have to now pay Rs 10. This process is called Marked to market.
Hi Nithin,
I have a small query about option writing.
For example: Today @ 11 am I sell Nifty 6300 put for 100 rs.
Today it closes of Rs.120. That means i have to pay 1000 rupees from account to maintain the margin before next trading.
Again next day , It closes to Rs. 110.
That means. I have to pay again 500 or 500 will be added to my account compare to previous close.
Are you getting what i am trying to convey?
Please clarify me.
Margin would be detected from the date which i write the option or the previous close of the day .
Nithy,
In option writing,
When you make a loss, margin required increases, and when you make a profit margin required reduces. So if price is 120 and then today closes at 110, the margin required will reduce.
Margin required is reduced/increased based on the price at which you would have shorted the option and not based on previous day close
Thanks lot for quick reply. That means again i should have to pay 500 rupees for the closing of 110 again on the next day.
No Nithy, if the price was Rs 120 the previous day and today it closes at Rs 110, you are in a profit of Rs 500, so you would not have to pay, Rs 500 will be credited to you.
will zerodha ever give leverage for delivery trades?
We might in the future, but no plans as of now. Presently if you need any leverage, we can help you setup a margin funding account through our Demat partner ILFS, after which you can use the additional leverage for both F&O and delivery trades.
only the thing that you hav to provide for zerodha clients is Sure tipz for weekly calls will be good for un employees.
It’s helpful
hi.
I want to do intraday trading.
can i place the buy and sell order with limit price at one go?
or i need to first place buy order at market price and later the sell order with limit price?
You can place a limit buy and limit sell at a same time, but you would require 2 times margin. But if you enter using market, and put a limit to exit, then you need only one time margin.
Hope this clarifies.
thank you.
could you please help me with the selection of the options in the drop down list while placing the order as you said using market and putting a limit to exit ?
swetha, I guess it will be best if I can get your client ID so that someone from our support can call and run a demo for you. It will be easy for you to understand. Can you send your client ID to [email protected]
Cheers,
A couple of questions.
1. How do I transfer Mutual Funds to Zerodha account. Which MFs can be transferred?
2. How do I pledge them after they are transferred?
You need to first transfer it to your demat account opened with us, once it is in the demat send an email request asking to pledge the MF. Email request is good enough. You can transfer most of the MF’s.
i want to know how is the volatality of Gold Regular Near month contract. if i trade in 10 contract on intraday basis , will i be able to square off my position easily. i mean are there enough traders available.
secondly, does Zerodaha execute my large order in one go or does it square of few contracts first then again the rest, like in batches.
thanks
Puneet,
Gold near contract is pretty liquid, and you should be able to trade all of them at one time. With Zerodha the order limit on big gold is 10 lots, what this means is that you can execute 10 lots at one time, you don’t have to break it into small orders. But if you have to place 20 lots of gold, you will have to place 2 orders of 10 lots each.
Hopefully this clarifies.
Cheers,
Hi:)
I have another crazy doubt.
Assume I have 1 lac rupees in my zerodha account.
Assume I am doing only intraday trades.
Now I want to take an intraday position in 1 stock which has a MIS margin of 3x.
So I will be able to do intraday for 3 lacs worth of shares, Correct?
……………………………………………………………………………………………….
Now is the crazy part:
Suppose I have spotted another 2 shares that also have an MIS margin of 3x each.
Now instead of trading 3 lacs(3x) worth of shares in 1 stock,
can i trade 3 lacs worth shares in 3 stocks(1x * 3=3x)??
I will be trading 1x in each of those 3 shares with the same 1 lac investment.
In either case I will be trading an amount worth 3 lacs in total.
In that way I could average my risks and stay in assured profit and also generate more brokerage
for Zerodha :p
sorry if this is a dumb question but this option would be really helpful:)
1st part: Yes
2nd part: If I am getting your question correctly, yes you can buy 3 different stocks for Rs 1lk which has 3x margin.
Let me tell you how it works, assume you buy 1lk of first stock, if it has 3x leverage, around 33k is blocked in your trading account. You still have 66k left that you can use anyway you want, trading 3x stocks, 5x stocks or whatever.. 🙂
hi
I wanted to intiate a strategy in Nifty options.I would be carrying the position till expiry.So I wanted to know that the margin required would be the one which is shown in span margin calculator after the margin benefit.Will I get Margin benefit or not??Actually I wanted to send you the screen shot of the span margin calculator which I had calculated for my positions.How do I send it to you?
You can email me the snapshot to [email protected]
But yeah, margin required is what is Total margin mentioned in the SPAN calculator, check this blog: http://zerodha.com/z-connect/queries/stock-and-fo-queries/zerodha-span-calculator, will answer all your queries on SPAN calculator
I came to know that one can pledge Mutual Funds (ETFs and non ETFs) with Zerodha now. If this is true, can you please let me know how this can be done?
Yes Kailas,
You can pledge MF’s and ETF’s, you will have to send an email request to [email protected] asking to pledge the quantity of MF or ETF which is in your demat account opened with us. You can send an email to [email protected] with your contact, he will get in touch and help you out with the same. We will soon have this put up as a post.
Cheers,
Nitin, thanks for the prompt reply. I will get in touch with [email protected]
only the stocks mentioned in this list can be traded in intraday?
http://zerodha.com/margin-calculator/Equity/
i mean is this a sample list and the actual list has many more stocks or
this is the current list which gets updated based on market conditions?
This is the real list and only stocks on this is available, and updated on market conditions.
So other stocks are not available for intraday or margin is not available on them?
Do you have the option of BTST?
Do you provide margin if i sell the stock before delivery (t+2) or am i not even allowed to sell?
Can i have 2 demat accounts? 1 existing and 1 with zerodha?
Sunny,
yes, stocks other than on that list is not available
Yes, we provide BTST facility, check this blog: http://zerodha.com/z-connect/queries/stock-and-fo-queries/btstatst-buyacquire-today-sell-tomorrow
Yes, you can sell before delivery, and the margin is released, but do understand the risk in BTST.
Yes you can have as many demats as you want, but you can’t have 2 with the same broker.
hi nithin, i understand a cover order has more leverage then a MIS order.
then why is the margin calculator for currency showing a higher leverage for MIS order over the cover order?
Thanks for pointing out, should be fixed by EOD.
Can u please tell me what is the square off timing for delivery based shares which I had purchased yesterday?
Is the square off timing is same for all traders or different for brokerage firms?
For delivery based shares, there is no concept of square off. Once you have paid full money, you can hold for as long as you want.
Hi Nitin, as stated by you in jan 2013, zerodha going to start leverage for delivery in Equity likewise in margin at present (e.g. Icicidirect T+5 days).
its almost end of the year now, when can we get it?
i m loosing money in MIS….
Deepak, leverage for delivery based trades is not something which is in our priority list right now. We will think about giving leverage for delivery based trades when we have a DP of our own.
My advice to you is to figure out a good system for trading intraday. Or if you feel your position will make money in a couple of days instead of on the same day, you can trade futures which is already a leveraged product that can be held until the expiry date with just a fraction of the amount.
hi Nitin, i have 30000 cash margin in my account , then how many lots of mis crude can i trade….
You can trade 2 lots of Crude Intraday with Rs.30,000 in your account.. You can look up for margins for Intraday(MIS)/Carry Forward(NRML) here: http://zerodha.com/margin-calculator/Commodity/
ok can i trade 10 lots of crude with 1.5 lacs cash margin for intraday
Hi Nitin, as stated by you in jan 2013, zerodha going to start leverage for delivery in Equity likewise in margin at present (e.g. Icicidirect T+5 days).
its almmost end of the year now, when can we get it?
sir i have seen today your web site zerodha i am interested how much times expose giving for mcx intraday and you given permission multy trade terminals pls give me repply as well as soon thank you
Ganesh,
We give 2 times leverage when trading MCX for intraday.
Thanks for the reply but can I trade with demat of other broker in Zerodha on intraday in equity trade
Yes you can trade intraday equity. Also you can trade futures and options for both intraday and overnight.
Cheers,
Hi
Have Pledged shares wortth Rs 6.5 L Haircut about 5.5 L.Cash balance of about 50 K.
Kept an overnight position which requires a margin of Rs 60 K. This has now been debited to my running account and the balance has gone into negative.
Shouldnt only the margin be debited to my collateral account and any MTM ( profit or loss) should be transferred to my daily running account.
Sir I have a Demat account with another broker and having only trading account with Zerodha and I am having soft copy of the said demat account detail, Further how can I link that account with my trading account at Zerodha with that soft copy details.
Surender,
Take a print, sign, and send the demat account details to our office in Bangalore asking to map it to your trading account. This will be mapped to your trading account, but do note that when you buy stocks at Zerodha it will go to your demat, but while selling you will have to sell with the same broker whose demat you map.
Sir I am a client of Zerodha and want my ledger balance for a particular fy like 2013-2014 or for any specific period than how can I get that
Surender,
Login to bo.zerodha.com using internet explorer, all your historical reports will be available there.
If I buy 10 Lot of Nifty then u ll charge rs 20 m i right.
Yep, correct Ronak!!!
I have pledged shares worth 6.5 lacs with you. You Still Require 30% Cash margin over and above the shares pledged to let me trade. Though I understand the logic of asking for a balance I still dont understand why you cant let me trade. If there is an MTM at EOD and I do not pay in you have enough stock with you to close the position the next morning.
Manoj,
We have been a little conservative on this side, but we are changing the policy of keeping 30% as cash margin to only 10% as cash margin in the next few days. One of the reasons for asking for this cash margin, is because selling a pledged stock is the last resort we want to take.
Can you email your client ID to [email protected], he will update you as soon as the new margin policy is in place.
Cheers,
thanx for the prompt reply.
Hi Nithin, Instead of blocking such a huge amount as margin, can you provide something like setting a global SL % on options sold. For e.g If I set it to be 10% then as soon as the price goes beyond 10% system can trigger buy and one needs to just keep required money to sell it at LTP + X% as per his/her choice…in current scenario even if you are selling far ends of the strikes systems blocks unreasonable amount.
Sachin,
We are among a select few brokerages who block the lowest margin for option writing for overnight position because we settle with exchange on T+0. These margin requirements are as stipulated by the exchanges, and not really in our control. Also, I get your point of SL and etc, but as you know when blocking margins exchanges have to think about the worst case scenario, is the margin enough if there is a drastic movement in the underlying, which probably happens once or twice every few years. It is important to not compromise on this risk as both exchange and us as brokers.
Yeah, you are right Nithin, I was not considering gap openings and as a broker one must have safe margins. Still have one more question, on a day like general election results when markets hits double circuits, how do you ensure margins?
The exchange SPAN margins usually go up around news events to cover for the risk, but one of the risks that brokerage run as a business is that nothing can be covered 100%, and hence it is better to be safe than sorry.
sir,
i just want to short 6600 ce and 5700 pe of dec expiry just targeting premium recievables. my doubt is that whatever required margin at the time of execution of trades is just enough to hold the positions till expiry date or i need to keep my margin requirements updated daily ?
Renjith,
Firstly I hope you are using our SPAN tool for calculating option writing margin, here is a blog on how to use it.
When you write options since the risk is unlimited a margin is blocked and similar to futures this is marked to market and hence need keep your margin requirement updated daily. So if the position starts going against you, you would have to ensure that the minimum required margins are present.
If I Sell Call Of NIFTY And Tomorrow If Markets Open 20% Up.What Next.You Just Take 10% Margin .
Ronak,
Risk of running brokerage business, whichever part of the world. 🙂 , The reason why we as a brokerage are very conservative in terms of leverage and usually the margin required keeps going up with increase in volatility.
Hi ,
Suppose if i want to trade in SBIN NOV FUT series intraday…what will be the margin requirement is it 40%of 28586 or 40% of(Span margin+Exposure Margin) ..i.e 36.500
Please clarify
Bharath,
have you checked out our Margin tool? , has list of all futures with NRML(overnight) and MIS(intraday Margins).
If you use the product type as MIS for trading intraday, the margin required is 40% of (SPAN +Exposure).
Cheers,
sir,
In futures we actually get Margin and we do not square off positions intraday. Can you tell me what is the interest rate that amount you give us on margin attracts. Thanks in advance.
Ashu, Futures are inherently leveraged and there is no interest that you have to pay to hold that position. Check this link: http://zerodha.com/margin-calculator/Futures/ for margins required.
Hi,
I am already a client for only trading in FNO. I am interested to do Intraday trading in NSE equity but its not showing in segment. how to add it ?
secondly,
I want to trade using Zerodha trader in NSE equity (no deliveries) in this case how to get userid for same and what will be margin? as i have heard of that in ztrader the margin is more as compare to NOW.
pl reply.
thanks
Sonu,
If you are not seeing the NSE segment then it means you didn’t open a demat account with us or didn’t link any other existing demat of yours. So you have 2 options for this:
1. If you have any existing demat account, send us a copy of your demat client master report( the statement which carries your Demat account number and your name) requesting to map to your trading account. Once this is done, you will automatically start seeing the NSE equity segment and you can start doing intraday trading in equity.
But note that if you link some other demat of yours, you will be able to buy stock for delivery, but you will not be able to sell that through us, you will have to sell that with the broker with whom u have opened the other demat account.
2. If you want to trade delivery based as well, open a new demat account with us. You can call the sales executive who helped u with the trading account or call on 080-49132020 for this.
margins on ZT is actually similar to NOW, ZT also gives u the option of cover order whereas NOW doesn’t.
Hello zerodha team ! I’m a brand new customer.
I wish to place a vertical credit spread on nifty options. But am confused regarding the margin requirements.
My account balance is 44000 rs.
I wish to sell (option writing) 4 lots of nifty 6500ce (November expiry) and buy 4 lots of nifty 6600ce (November expiry) to hedge it.
Is it possible for me to do so with 44000 rs margin ?
If yes how would I go about placing the orders ( sell 1 lot then buy 1 lot and repeat 4 times ? )
Also I prefer to trade on my iPad. Is there any app of zerodha for iPad ?
Thanks and regards.
Hey Risk,
The option margin system in India works very differently compared to the developed markets.
When you sell 6500 calls and buy 6600 calls, the risk is reduced and hence the margin required to take this position also reduces, but not to the extent u r expecting.
If you want to naked short 6500 calls Nov margin required is 21200 and to buy 6600 another 1500. If you take both the positions together the margin required is around 19700, so around 15% margin benefit.
So the example you have given, you can take position with 2 lots.
You can use our SPAN calculator for the same.
For IPAD you can use Z5, our HTML5 platform.
But theoretically maximum loss = difference in strike price- net credit received. So why does the exchange require a larger margin ? Is the margin benefit only 15% in the case of iron condors also
Theoretically yes, but there is an execution risk while taking this strategy. What if you exit one and not the other once taking a position with lesser margin? Unfortunately other than calendar spreads you cannot trade any other spread directly.
You can try the SPAN calculator to know the exact margin benefit.
Hi,
Can I change all my F & O open positions holdings from ‘NRML’ to ‘MIS’ to increase intra day liquidity? These positions might not have been taken on same day….Is that allowed?
Yes you can convert from NRML to MIS and if you want back from MIS to NRML. Check this blog on position conversion
Does the span margin calculator in Nest , works for currency options.
I tried checking margin for selling usdinr 62 CE , 29 oct 2013 with (net quantity -1) & it showed margin of 5406.
My understanding is for 1000 dollar ( 1 lot ) , it should be around 1800 rs at 3% .
Regards
PS,
The margin for trading currency went up quite significantly, we had sent an email to all our clients informing that. Here is the link of the email.
Cheers,
Hi,
If I sell the stocks from my demat holdings, Can I buy back the shares immediately if it comes to a lower price on the same day? Will it allow or should i wait T+2 days to buy the shares once I get cash?
Similarly after selling the stocks from my demat holdings, can I use that money for intraday trading on the same day or should I wait till T+2 days till the cash comes to my account?
Also by default, the intraday chart shows 22 days data. How to make it to show just the current day intraday chart by default? I tried using the template but it doesnt seem to work.
Please answer my queries.
Thanks,
Ganpat
Ganpat,
You can buy back immediately.
You can use the proceeds from the sale to do intraday trading immediately.
By default it will show 22 days and this has been made because of request of a lot of traders. To look at 1 day chart, you will have to zoom into or select by left clicking and dragging on the portion u want to see on the chart.
Thanks for the quick reply. Is there any way to make 1 day chart as default, as I will close and open the charts many times during a trade according to my convenience?
You press Shift + P after clciking on the scrip to open the whole chart. As soon as the chart is open, you press Ctrl + N, this will open 1 day chart.
hi ,
what are the margin blocked for option calendar spread:
1)sell oct 6000 call And buy Nov 6000 call
2)sell oct 6000 call And buy Nov 6200 call
3)sell oct 6000 call (naked call writing)
I do not have access to your software with margin calculator,it will be great if you can post the reply here.
Regards
1. Rs 14270
2. Rs 19009
3. Rs 27951
Cheers,
Thanks for your swift reply,appreciate that.
Can I use my demat holding of 1) stocks 2) Equity mutual funds 3) Debt mutual funds , for margin of option position.
Are there any extra charges for it.
regards
Yes you can give all this as collateral, will cost you around Rs60 in regulatory charges to pledge & unpledge for every stock/MF you hold. But once pledged you don’t have to pay any interest for the money you use for trading options..
Now that I have transferred Mutual funds to my zerodha account & trying to pledge them as collateral , I am being told that it is not possible.Can you please get my MF’s pledged to generate margin.
regards
PS, can you send an email to [email protected], with your client ID, he follow up on this and have this done immediately.
Cheers,
I am already in communication with aforementioned email id .But even after 1 month & dozen emails the mutual fund part is still not happening.can you please help.
regards
one final question.
Can I buy mutual funds through my Zerodha account OR can I transfer mutual funds from other demat account to zerodha account (I know shares can be transferred).
I actually hold quite substantial amount as MF in my other demat account & intend to use it as margin by transferring it to my Zerodha account.
regards
Yes PS,
You can transfer and use it as collateral, but presently the platform doesn’t let you buy or sell MF with us.
Do zerodha maintain any document where user can get the haircut percentage for the stock , mutual fund he wants to pledge.Couldn’t find the link.
regards
Hi Ps, we don’t have for mutual funds yet on our website, but you can see the haircuts for stocks in the download section of our page. You can click here..
thanks for the reply.
-Aforementioned document has list of mutual funds in the end.
-Document do not mention haircut percent for stock/mf
Dear Team
Does margin required for future trading depends upon whether i buy or sell future? e.g. if margin required for buying nifty 1 lot is INR 25000,will it be same for selling 1 lot of nifty future?Ifnot,from where I can find that one? In margin policy, it has been stated that
Once bought as NRML, you can hold the contract till the end of expiry as long as you meet the MTM obligations on a daily basis.
I have sold 1 lot of Mcleord Russel. If i check span margin excel, itsays margin required(not sure buy/sell) is 34685. Now If i check my open position at end of day, it has got 2 columns which is confusing me – clos. Price(13945.95) and MTM value (-13683450.000)
Total MTM value in this report is coming out to be -65671892(i do have other SELLS future also). SO I should infer from this big amount?
rgds
Gyan
Gyan,
Margin required is same for buy and sell.
Yes once bought as NRML, you can hold it till end of expiry.
I am a little confused on this last query of yours, will get someone to call you up and explain.
Cheers,
Hello sir,
I want to know the procedure for close nse f&o trading account (No DP Account).
Currently account don’t have any balance and not in use.
thanking you.
Send us a letter with your client id and asking to close your account with signature. We would do it.
Cheers,
VMG Sep 14 2013, 10:45 pm
Zerodha replyThanks (1) | Sep 14 2013, 9:27 pm
Send us a letter with your client id and asking to close your account with signature. We would do it.
Cheers,
Dear sir,
As per previous response from your side regarding trading account closing please provide address where
to send account closure letter with signature.
Is there any account closing form or only letter with signature is enough ?
Any document is required to attach with letter ?
Thanking you
Just a letter is good enough. Also, the trading account has no AMC or any running costs, not closing an account won’t add any overhead cost to you.
Cheers,
Can I use Zerodha Trading platform with Android Jelly Bean for eg: SAMSUNG tab2
Yes it should work.
Please let me know the constituents of Obligation Amount
An obligation amount can either be a debit/credit. Below are the constituents:
Equity Obligation:
*Debit: Purchase of Equity Stocks/ Intraday Loss/ Purchase and Sale of Equity Stock with Purchase Value > Sale Value
*Credit: Sale of Equity Stocks/ Intraday Gain/ Purchase and Sale Equity Stock with Sale Value > Purchase Value
*******************************************************************************************************
F&O / Currency Derivative Obligation:
*Debit: Purchase of an Option Contract/ MTM Loss on Futures
*Credit: Sale of an Option Contact/ MTM Gain on Futures
**Obligation amount posted is after Brokerage and all other statutory charges
Do you give any margin in niftyoption for intraday ?
For buying options we don’t give any margin, but if you are shorting/writing options using product type MIS for intraday, you will need 40% of exchange stipulated margin.
Wat are the margins required for commodity futures?
Vicky,
As mentioned in point 5 in the above blog. For overnight complete SPAN margin as per the commodity margin file and for intraday 50% of that margin.
Cheers
Vicky246 Aug 6 2013, 12:32 pm
I need file containing details about the span and complete exposure margin, amount of every commodity trading in commodity exchange.
[ Click to thank ]
As mentioned in the blog above, you can login to the backoffice and get the SPAN file. This will be updated everyday. You can also use the SPAN calculator for this.
Where can I get the span margin file in Q-Backoffice.
Rohit, the SPAN file can be found on https://zerodha.com/margin-calculator/Futures/ on the top right of the table.
Please check. The link “Equity margin (PDF)” opens a PDF that only has margin for currencies. Need the span margin file for equity option writing. Its a pain to use calculator for every trade.
The file I’ve stated gives SPAN margin for all equity futures.
Where do I get the span margin file for options?
Hello,
How to calculate the premium for writing/shorting options
thank you
You mean margin for writing options right? We have a tool for this called SPAN calculator , read the blog.
Usually writing for options is around future margin if you are writing in the money options and it keeps reducing as and when it goes out of the money. See the blog on Span calculator if you want to see the exact amount.
Cheers,
If i write an out-of-the money option that becomes in-the-money sometime later and i dont have the future margin+30% as required to hold it will it get squared off immediately or will i be given notice to arrange some more margin?
Also how far on in-the-money or out-of-the money must an option be to concider it deep?
Vivek,
When you write an OTM option, when market goes against you the margin requirement will keep going up daily. You will have to track the margin requirement for the option you hold and ensure that you have enough funds to hold this.
The logic of future margin +30% is not correct.
You can use the SPAN calculator to know what is the exact margin requirement at every point of time. Click here to read about SPAN calculator.
Sir i want to know does Zerodha have instant order execution. Lets say i have 10000 shares of IVRCL INFRA which i bought at 15.20 each and a put a SL of 14.60 and target of 15.35. Lets say after 1 hour the price is hovering around 15.35. then according to my target all the shares should have been sold out. but as we know the price of many shares fluctuates even in 1 second so as i have a huge number of share will all my shares be executed at 15.35 atonce or slowly slowly based on market prices fluctuation it will execute.
If all shares get executed when price touch 15.35 at once then i will be gaining 1400 approx. hahaha. Reply please i am curious and waiting
Praveen,
The order at 15.35, the executed will be based on first in first out. So if you were the first person putting the order at 15.35 and if someone comes and buys it at 15.35, then your order will be executed otherwise it will remain pending.
So execution of your order will depend on how many people buy at 15.35, it is the same way with every broker.
Cheers
Hello,
may i know the margins required for selling stock futures as shown in span margin file or other
and MIS, CO both are applicable for selling future contracts.
thank you
Tharun,
The margin required is as per the file for both buying and selling futures, margin doesn’t change for buying/selling.
Sir i checked out the margin policies Excel and found that in cover order the stop loss must be 1.5% range. But take this example. If i buy opto circuit at 30 and according to this stop loss should be 29.55 i think (using cover order) and lets say i got 10000Rs then leveraged amount will be 10000×17(as for opto circuit leverage is 17times using cover order). Now i can buy approx 5600 shares. As the stop loss is very near to share buy price if it hit stop loss then i will be losing 2617Rs(i got this answer from your ZERODHA BROKERAGE CALCULATOR PAGE).
All i want to ask is if i use only margin which gives 8times for opto circuit then my total money will be 80000 and i can buy 2600 shares approx. lets say i didnt use stop loss and my target is 30.25 then i will get a profit of 603 approx. It is much better to earn a little than losing a lot. so I want to know if i use only margin( i.e not cover order) then can i use it without stop loss with target price.
can i use target price without any stop loss in margin intraday sqaure off. Ya i know if price fell i will suffer huge loss but as opto circuit is a high volume stock increase in only 25paise is somewhat possible..
Awaiting your reply
Praveen,
Sorry had missed your query,
Yes you can use MIS as product type and you get an option to choose to have a SL or not have a SL. You can choose to place limit order as exit order as well.
Cover orders is for people who need that extra leverage, more than the 8 times that you will get from MIS, for these people only we ask to put SL if using cover order.
Sir as i am a student so i want to trade with little money. Can i trade with 5000Rs after i learn properly i will add more money to account.?????
If i use margin in my case let my investment is 5000 and i got leverage of 10times then i can total trade for 50000Rs then what interest i have to pay for using margin???????
Answer my questions ASAP. Awaiting your replies
Praveen,
If you are trading on equity depending on what stock you are trading you get 3 to 10 times. So yes for eg you can buy 50,000 worth of reliance with only 5000 in your account. But this leverage is allowed only for intraday trades and you have to square off by 3.20pm otherwise it gets autosquared off.
There is no interest charged for this intraday leverage.
Cheers,
Hello,
I have a question that how to short a stock, means SHORT XYZ JUL FUT@100 TGT 98,97
How to buy/short that stock future and how much margin required for that.
thank you
Tharun,
Check this blog on how to place orders,
To buy and sell futures, add the future to the marketwatch, use F1 for buy and F2 for sell, keep product type as NRML or MIS and place your order.
Margin depends on the future that you are trading, you can see the margin for various contracts as explained in the blog above. If you use MIS you will need only 40% of that margin, but you will have to square the positions off by 3.20pm.
Hello sir, I want information about intraday margin for equity future.
For example if I want to buy Nifty JULY future at 5800 for intraday(MIS) exactly how much margin is require. I am asking this because I dont know wheather it is 40% or 25% of original margin.
If Nifty margin is 23000 for positional, for intraday wheather it is 9000 or 6000. Please clarify this as early as possible.
Thanks.
VMG,
For intraday you can trade using MIS as product type or else you can also use cover orders. (In cover orders you have to buy market price and compulsorily put a Stop loss).
If you are using the product type as MIS then it is 40% of 23000 and if you are using cover orders as a product it is 25% of 23000.
Cheers,
VMGJul 10 2013, 8:25 pm
Thanks sir to solve my query about difference between MIS order and COVERED order and associated margin.
Now I want to confirm only about covered order. Covered order means just an automated order executed as per market rate and stop loss order is also automated calculated.
I want to know wheather CO is place manually, mean LIMIT order for buying (IF Nifty is at 5850 and I want to buy at 5840).
Can I place CO order as LIMIT order ?….
Cheers..
[ Click to thank ]
VMG,
Please read this blog on Cover orders: http://www.zerodha.com/z-connect/blog/view/cover-orders-for-higher-leverage
Explains everything clearly. You cannot place limit order while trading cover orders.
Cheers,
ok sir i am just a beginner in trading stocks so i dont know much about leverage. lets say i have 25000 rupees to trade then what wll be the leverage if i trade in blue chip stocks like HDFC,BAJAJAUTO,RELIANCE etc???????
Blue chips for intraday will typically be upto 10 times , but if you use cover orders you can get upto 20 times.
To know about cover orders check this blog.
Scrip “Aloktext” is supposed to give 9 times leverage , but according to Zerodha Customer Care its been diluted to 3 few days back , So my Question is When u gonna Update the IntradayMargins.xls , patiently waiting for it.
Thanks
Hello sir, i want to ask that how many margin zerodha gives for intraday trading , suppose i having 10,000 ???? how much u give me margin to trade for intraday…
Mayur,
Depends on what you are trading and the details are on the blog
Can you let me know what you trade?
Hello,
Your margin policy (ref: back office) is still dated 6 Dec 2011, despite said to be revised effective 21 May 2013
Thanks
Thanks for this, will have this updated soon…
Hi,
the CO margin of 25% is applicable for all stock futures or only for the index futures.
Thanks
All futures contracts
Hi,
I have a doubt, if i sell 10k worth options in morning and can i buy options in the afternoon same worth of 10k.
thank you
Yes you can buy back for options worth 10k
Hello Team Zerodha,
You have been evading answering this for a while. I hope you would own the responsibility of assuring your clients that.they can trade with confidence relying upon margin calculation interface of your trading platform. Please realize that not answering is not an option.
Can you confirm the following that :
1. Your trading platform takes care of stipulated margin requirements when a trader places order in FNO for taking overnight positions?
2. Trader need not worry when your trading platform shows enough acredit balance at the end of trading hours (3:30pm) while the margin statement generated in the evening (around 7pm) shows a much lower credit balance (or even a small debit balance) and next day morning trading platform again shows enough credit balance?
Here by ‘enough’ I mean about 8-10% of total funding available in the trading account.
Thanks & Regards,
Anil Kumar
Anil,
Firstly, didn’t understand your statement ” evading answering” ? Can you explain ?
1. As long as you are taking a position with order type as NRML, stipulated margin requirement will be blocked while placing an order.
2. Your definition of enough is not clear. in F&O margin requirement changes based on the contract you are trading, some of them might require 8 to 10% while others might require more. But as long as you are having exchange stipulated margin it should be enough and nothing to worry about.
That said, the important thing to note is that margin requirements are updated by the exchanges 5 times during the day. There is a possibility that on an extreme day, the movement in the stock could be so drastic that margin requirement might go up suddenly. This doesn’t happen often though.
When you write deep in the money options, this rule might again not apply. If you write deep in the money options, pocket the premium and use it to write more options, there might be a credit showing, but it won’t be a realized credit and hence it is possible that you have a short penalty as levied by the exchange.
But as long as you are playing by the rules, there is definitely nothing to worry..
Cheers,
Hello Zerodha Team,
Thanks for responding!
By ‘evading answering’ I meant actually what it literally means. Same query was posted about 3 weeks back along with a query on algoZ where I also mentioned that Zerodha seems to be ignoring the basics. While answering that query you assured to get back on the margin query but never came back.
I always want to play by the rules. That is the reason I also want that rules are being enforced in spirit and the mechanism to enforce them is not faulty. Helpdesk at one time has said that I can rely only on margin statement. Now that is not just impractical (but unfair too), as positions have already been taken relying on your trading platform.
By ‘enough’ I meant that if I have funded my trading account with 500K, I leave 40-50K unused (at the close of trading hours) to provide for the market fluctuation. The positions are always taken with ‘NRML’ order type. But the strange and worrying part is that while your trading platform shows withdrawable balance of 100+K (at 3:30pm) and also the next day morning at 9:15am, your margin statement shows just about 25K. And, this keeps happening for many days for without any change in the underlying positions. Obviously, this is not due to extreme movements in the stock/index. Snapshots of discrepancies have been sent to compliance dept multiple times.
I strongly feel trading platform (at EOD) and margin statement should reflect the same status (except for situations like T+1 credit, ITM options and violent market movements in between). It would be worth checking your systems for bringing them in sync.
Thanks,
Anil Kumar
My bad, if I missed your previous query, but can you email me your client ID to [email protected]. Now that I have heard your query out, I can see another reason why the margin statement may differ sometimes. Assume that you were carrying options from before, when you sell them, we let you take a fresh position using the same margin, but all f&O settlements happen on a T+1 day basis. So the margin statement for that particular day won’t show the credit you got by selling options held previously.
So for eg, if you 5lks in your account and bought 4lks of options. Tomorrow you sell the 4lks of options for 4lks. We will still let you buy for Rs 5lk, but the 4lks credit will happen only on T+1, day after tomorrow. In tomorrows margin statement we cannot show this 4lks credit because it is not realized. If we have to sync the margin statement with the trading terminal position on this, we will then not be able to allow trade on options carried forward and which is sold.
Hopefully this clarifies, but do send me that email with your client ID, will double check, also let me know which day’s margin statement are you talking about. [email protected]
Cheers. .
Hi,
Actually in terms of margin I usually face a problem, for many a times I do not regularly track my margin requirements and which in turn squares off my position, even though I wanted to continue in that scrip.
I have a suggestion, if zerodha even if at some cost, starts to provide us alerts before sometime for our margin requirements so that our position is maintained
Thanks
Tushar
Tushar, sorry for missing your post.. Presently there is no such facility for us to message you, but will bounce the idea of our risk management team and see if anything can be done.
Cheers,
hello sir,
i have a question on margin. if i buy a nifty future @5500 then about 27500 margin needed. now price goes up to 5600. now if i want to get a fresh sell call do i need more 28000 as margin. or due to hedge i can get any discount on margin?
Tintin,
When you bought nifty at 5500 , 27500 was blocked, if you are selling the same nifty at 5600, you are exiting and for this no margin is required. It is like you are selling what you have bought.
If what you mean is that you are writing/shorting a call option, yes you will get a margin benefit and don’t require 28000. We have designed a tool on ZT through which you can calculate the exact margin benefit even before taking a trade, Click here to see the SPAN calculator.
Dear sir i am sumit kumar jha i have started trading with your trading account i have some question from you
1>Do you have charge extra money if we are using margin money which is provide by you?
2>I have deposited 20000 rs and traded first time on 18/04/2013 i have earn approx 450 rs but in my account it is not showing as well as my balance shows 19989.89 instead of 20000 why please help me?
1> No, there is no extra charge for using our margin trading facility.
2> Looks like you are checking your balance before the trade process has been done. Friday was expiry of Global contracts and hence there was a delay in the file processing. Please check your account now and you would see the credit, if any.
am a new user of zerodh. if i want to trade in bse future of small lot of 5 in intraday future how much i have to pay
Hello Zerodha,
I want to buy 1 lot of NIFTY April 5800 Put(Price of 121.9) and sell 1 lot of April 5500 Put(Price of 21.5). Please note that the put that I am buying is fully covered because of the 5800 Put that I would be holding.
1) What would be overall margin requirement?
2) Can I place this order as limit order, say when I am able to enter the above two contract at 90/lot? If so, How do I do that?
Regards,
Chandra
Chandra,
Presently Nifty 5800 puts are 96 and 5500 puts at 15. To short 5500 put margin required is around 18k, but the combined margin required to short 5500 put and buying 5800 puts is only around 13k.
So you get a margin benefit of 5k on option writing + 5k on buying the 5800 puts, together a benefit of almost 10k.
We offer you a tool called (SPAN calculator)[http://www.zerodha.com/z-connect/blog/view/span-calculator] which is unique and will help you to know the margin benefits even before taking a trade.
You can place orders for both, but the margin benefit you will get only after the position is executed. So if you place an order to short the puts, you will need 18k, but as soon as you buy 5500 puts, it will drop immediately.
So yes place a limit order to buy 5800 puts at 90 and sell 5500 at 15, but you will need separate margins for this, once both are executed your margin requirement drops..
Hopefully this helps..
Taking example of prices that you have listed, to buy 1 lot of 5800 put I need 4800 rs. If I am selling 5500 put at 15 rs I am getting 750 rs back. As long as I have 5800 put, why is there a margin requirement for 5500 put. Isn’t my 5500 put that I wrote completely protected by the 5800 put that bought. Shouldn’t’ the margin requirement actually be 4800-750=4050?
Chandra,
I understand what you are trying to say, but unfortunately exchanges don’t recognize such spreads. The issue for the exchange is once you have taken the position, what if you first square of the long puts? You will be left with short puts with unlimited risk and only 5k margin…??
Hence exchanges won’t let you trade with the margins that you are thinking.
Why cant zerodha put a simple rule at the time of closing the contract. If I try to close the 5800 contract without first closing 5500 put then I am allowed to do that only if I have the required margin to write 5500 Put. If I close both of them in one go, then I am fine. For no additional risk of writing a covered put of 5500, why would you want a margin of close to 13K when 4K is sufficient. I mean I should be able to do three times with 13K in my account.
Chandra, this is not a rule we can put, these are rules set by the exchange. If we collect margin from you which is lesser than what is prescribed by the exchange, there is short margin penalty levied by the exchange.
As a trader, I understand what you are asking for, but unfortunately not possible today on the Indian exchanges.
The only positions that get a margin benefit is the calendar spreads, that is because the calendar spreads are quoted on the exchange. Check this link.
what is the process for getting extra margins from your side for intraday in commodities ??
say,i am having 15,000 in my account…can i get extra margins from zerodha for intraday..
if so…how much max i can get…
Harsha,
By using the product type as MIS while placing your orders, you will get a leverage of 2 times and this will be allowed till 25 minutes before closing of the market. If you don’t square it off, all your MIS positions would be autosquared off 25 minutes before closing of the commodity markets. You can use position conversion to convert MIS to NRML, once done you will be allowed to hold positions overnight, but you will require complete margins for that.
Read the following blogs:
[Margin policies](http://www.zerodha.com/z-connect/blog/view/zerodha-margin-policies)
[Position Conversion](http://www.zerodha.com/z-connect/blog/view/zt-position-conversion)
When are you planning to introduce cover order for Commodities ??
waiting for approval from MCX.
whether we have to maintain separate margin for Equity and commodity segment.
Example Am Having Rs 50000 in Trading account whether possible to buy 1 Lot nifty in NSEFO segment((app Margin of 25000) and Commodity segment (Goldmini 2lots of margin Rs 25000)).
Tuna,
Yes we have to keep separate margins as per SEBI/FMC regulations. The example you have given would not be possible, if you have 50k in your equity ledger you cannot use it to buy goldmini..
Cheers..
Do You offer Share as Margin concept as in IciciDirect, in this you can use some % (80 to 85%) of your equity positions as Margin money of future trades.
Yes we do, but unlike icici which gives you an interface, you will have to send us an email asking us to pledge stocks.. We will give you margins for the same from the next trading day.. How much margin depends on the stock, some stocks 80% some 60%.. We will put up a blog on this by the weekend, do keep following us on this..
For trading option strategies like iron condors, what would be the margin requirement for selling nifty 5600 put and buying 5500 put for the same month and 1 lot each? The SPAN calculator says it is 19249 – but shouldn’t it be less since the short put is hedged by the long put?
Hi Arup,
The margin benefit you see on SPAN calculator, is what NSE asks for, it reduces a bit when you are hedged, but not by much.. Remember on SPAN calculator, after adding both the positions using net quantity, you click on both of them when you click on get SPAN..
Presently for this position the margin requirement I see is : for shorting 5600 puts, Rs 18900, for shorting 5600 puts and going long 5500 puts: Rs 18000.. SPAN goes down and also you don’t require extra funds for buying the 5500 puts..
The reason exchange has to do this is because once you have both positions and if you exit the long puts, there still has to be sufficient margin to hold the short puts, otherwise it is considered a risk.. I guess this problem will get fixed only when exchange approves a product which let’s you enter a strategy in a single click and exit them in a single click…
Thanks for the detailed reply. Is the exchange at all looking to implement such a product in which we can enter/exit strategies in a single click as you mentioned? Do you know of any timelines in this regard?
Hmmm.. We as members have put a request to consider, but exchange doing it anytime soon, doesn’t seem like. When there is a question of risk getting reduced, they are for good or bad tough to change their policies..
Will exchange going to implement such policies like iron condor, vertical spread ? Really looking for this as combined order on single click will ensure less margin and hence less risk.
hmm.. don’t think exchanges can.
Can’t you provide this feature on your own?
A sort of multileg or combination order.
I am not sure if brokers have this kind of freedom.
I do appreciate the kind of system change this would entail even if it was given.
Regards,
Chandan
We don’t have the feature of placing multiple orders at one go yet. We’re working on making this happen; but it’ll take time.
Sir
Suppose I buy 1 lot (1000) of ZINCMINI @ Rs.112 of March 2013 Contract and I sell 1 lot (1000) of ZINCMIN @ Rs.113 of April 2013. The present rate of March contract is Rs.112.50 and March contract is Rs.113.50. What is the Margin Money required for this transaction and how to calculate margin. Please explain.
What you are trying do is called a calendar spread:
Read this for more on [Spread order](http://www.zerodha.com/z-connect/blog/view/zt-spread-orders)
and [SPAN calculator](http://www.zerodha.com/z-connect/blog/view/span-calculator)
I have got few clarifications.
1) I buy 10 shares at Rs 10. If the stock goes down I want to place a SL at Rs 8 and at the same time if the stock goes up I want to sell it at Rs 12. Can I place both the orders at the same time?
2) If buy one lot of USD INR at 53.9000 and it moves up to 53.9050 what is the profit I make. (I am not clear how sure on the increase in value)
Moses,
1. Yes you can place both the orders at same time, but make sure that you cancel the other when one gets executed. So if stock goes to 12 and you sell the stock for profit, make sure you cancel the stop loss that you had placed at 8 otherwise if the stock comes down to 8 it will get sold again..
2. In currency price is given till 4 decimal points. 53.0000 and minimum movement is 0.00025. So if USDINR is at 53.0000 it can to 53.0025 53.0050 53.0075 53.0100 53.0125 and so on.
For 1 lot every 0.0025 means a profit or loss of Rs 2.5 , So if you bought at 53.9000 and sold at 53.9050 that means a profit of Rs 5.
For brokerage charges and others you can look at the calcuator..
Hope this clarifies..
Thanks for the info on CDS
With regards to placing the orders.
– F1 to buy at Rs 10
– F2 to put the SL at Rs 8
– What is the order that I will have to place if i want to execute at Rs 12 profit?
f1 limit/market to buy
f2 limit to sell at 12
f2 SL-M/SL to put a stop loss at 8(keep trigger price as 8)
Thanks for the information.
Can I use the amount kept in NFO segment for trading Currency futures ?
Yes you can..
can you not make buy or sell cover order entry as a limit order instead of market order. that will enable us to place the order well before the required level is reached. can you consider
Vijay,
Cover order as a product is approved by the exchanges for lower margin requirements because both the entry and stoploss are market orders. Hence we cannot change anything on this, [Click here to know about cover orders](http://zerodha.com/z-connect/blog/view/cover-orders-for-higher-leverage)
Cheers
span calculator shows me a margin of 11470 for hindalco fut sell and 110 call buy. But when i put a spread order for the same it gets rejected saying that the margin required is around 42000, even though i have bal of 35000. can you explain
Vijay, Yes the margin required for both the positions together is around 11500.. The issue here is that to get this margin benefit you have to enter the position separately and not through spread or basket orders..
So if you short hindalco futures(you will need 35k for this) and then buy the calls, the margin drops down to 11500, but to first short hindalco futures you will need that 35k..
If margin in your account is less, what you can do is that use MIS product type to short hindalco futures, margin blocked will be only 40% of 35k and then buy the calls.. Now go back and convert your futures from MIS to NRML, to know more on position conversion [click here](http://zerodha.com/z-connect/blog/view/zt-position-conversion)
Cheers,
Then when to use spread order window? Explain with example…
Anand, Spread orders is ideally used only when you need immediate execution which is important when placing a strategy involving multiple positions..
So if you buy nifty futures and sell nifty calls, you need both to be executed immediately or get cancelled, otherwise there is a risk that you position is naked.. Use spread orders for that..
Does Zerodha has mobile trading platform for MCX?
Yes we do!
Thank you very much for the information. I have a small query about BSE & BFO
1. I am not getting how much margin i need to pay for One lot of Sensex?? Kindly tel me how much margin to be maintained to be kept for overnight position??? 2. BSE scripts how much leverage for intraday??
Hi, Presently we are not receiving the SPAN files for BSE and hence not able to share the details. But for sensex similar to nifty, the margin required is around 10% of the contract value.
How to access span calculator in my ZT
Sathya,
SPAN Calculator is available on this link, if you want to initiate it on ZT read this blog and if you want to know how to use it on the browser, read this.
In delivery based equity trading, after i sell a stock will the entire amt be available in my limit amt immediately or only after T+2 days? And why no margin for delivery trades? ICICIDirect provides margins for 5 days in equities cash segment.
The margin is available for you to take a fresh position immediately, but if you want to withdraw the funds you will have to wait for T+2 days.. We presently don’t allow margin for delivery trades, but during the course of this year, we will most likely start offering..
@karthikeyan, there is no margin provided for BTST trades on equity, you need complete money for holding positions overnight..
Hi ,If we are trading in BTST ,what would be margin for that whether it is similar to the intraday margin or exposure ..or it may vary ?
Hi Velu, As you would have received an email from our end already, the position was squared off because of insufficient margin to hold the Natural gas position. Do reply to the email if you need someone to get further clarity.
Sir, I bought 1 lot natural gas with expiry date feb2013 at 192.20. Then the price suddenly fall around 177 within 2 days. Then it was automatically sold by you. What is the reason? Even though validity upto feb 2013 and enough cash in account, why it was sold. my ID DK0313
Srinivas, it is possible only if you are holding stocks in your demat..
The same question arised for me also which srinivas asked you,
But I am asking you, without share holdings in demat account whether is it possible to do short?
Regards,
Srinivasan.
Yes srinivasan,
You can short, but only for intraday. At 3.20pm, it gets bought back if you haven’t bought back on your own. To be able to short intraday without stock in your account, you need to use the product type as MIS while placing your order. The list of stocks that can be shorted for intraday is available on this link.
Cheers,
How can I short the stock with CNC is it even possible?
With us, you will need the complete money for keeping overnight equity positions.
@Girish, if you are checking this position on a weekend, we run testing sometimes and it is possible that it will show 0 at those times..
cant view my limit amount
it was visible on friday as 1714 now it is zero
Hi,
I generally buy at close today & sell next day at open (BTST).
Is trading on margin allowed in this case on Zerodha or I can buy only my account balance without leverage.
someone told me that ICICIdirect allows to keep margin positions for 5 days.
Best regards
In case of delivery, leverage option is not there on Zerodha.
Yes ICICI provides leverage for T+5 days in case of NSE
and T+90 days for BSE.
But ICICI deducts every day some amount from your account till you exit the stock. And also brokerage charges are very high on ICICI, applicable both at buy and sell time.
can i do BTST trades in zerodha. suppose i bought today and want to sell tomorrow those shares can it possible bcoz in 1 day these shares would not come in my account so how it is possible to sell without coming in my account?
Aditya, yes we support. Check this post. Has everything you need to know.
Looking forward to cover order
facility in commodity also shortly
Great explanation.Really helpful for begainer like me.
Thank You.
can i trade using zerodha in indian markets , from USA?
Yes you can!!
is Zerodha trading platform available for Windows mobile?
The mobile version presently doesn’t work on windows phone.
We have a HTML5 version Z5 that will work on your windows mobile as well. Check this link
Hi,
Suppose your are holding rs 2 lakh worth stocks in ur demat account and have 1 lakh cash, wat wud be the initial margin for intraday trading in Nse Futures or options?
Yasaswi it depends on what stock you are going to pledge, if the stocks you hold has a 20% haircut, then you can use 80% of this 2lks which is 1.6lks + 1lk = 2.6lks for intraday f&O positions.
Pledge as in you have to transfer the stocks to any other demat account or will the stocks stay in your demat as the margin is only for intraday?
Yes, you need to send us an email request to pledge stocks, once you do this the stocks would move from your demat to Zerodha pledge account, and once there you will start getting intraday margins for F&O immediately
Can I use this margin for intraday equity trading too? Also are there any charges for pledging the stocks? And is it really necessary to send an email for the same? With traditional brokers like IIFL, one needn’t send any email and it is a very hassle free process.
No Prateek, this can be used for F&O trading only. One round trip of pledge and unpledge costs around Rs 55 per scrip (irrespective of the quantity).
On Q, we are giving an option to place a pledge request. It will still take around 24 hours to get the benefit.
Unlike brokers like IIFL who keep the stocks with them when they pledge, we pledge it directly with NSCCL (NSE). So we don’t end up lending the same stock to someone else, or charge interest on margin provided.
Thanks for such a prompt reply. Initially I was amazed when I saw 0.01% brokerage for intraday equity trading but now I guess I will have to continue with IIFL (who charge 0.05%).
And I am sure you would know this, but still just to clarify, IIFL doesn’t charge any interest on the margin they provide for intraday equity trading.
Prateek, we charge 0.01% or Rs 20 whichever is lower. 🙂 So you never pay more than Rs 20. But yes the pledging bit is something that will be simplified in the next few months.
Cheers,
Can you tell me why you are giving margin for future and option only, not for intraday equity scripts.
We give for intraday equity scrips as well, check this: https://zerodha.com/margin-calculator/Equity/ ,upto 10 times and upto 20 times if you use bracket or cover orders.
Can you please confirm –
1) Does Zerodha charge interest on the margin provided against shares pledged?
2) If yes, on just the margin utilised or the entire pledge created? Also how much %?
3) Am I eligible to get bonus, dividend etc on the pledged shares? I want to create a pledge and keep writing covered calls for a considerable duration.
4) If I have one lot size quantity of shares (Say 500 shares of RIL) pledged and if after haircut on that stock the margin available is more than the required to write a CALL on the same stock, Do I still have to bring some cash too? If yes, how much?
5) Same question for Futures. Asking separately because futures have EoD MTM. So, I believe some cash component will be required so as to avoid small transactions for any shortfall in margin.
6) Is Writing a CALL on the pledged underlying different than using that margin for writing CALL on some Index or unrelated stock? I am asking from Zerodha margin policy point of view and not risk-cover point of view.
7) Que 5 is asked because if I have 2 underlyings pledged to write covered calls will the margin be pooled or will it be recognised in pairs of (underlying-Call)? I hope it does. If one underlying falls in value reducing over all margin without increasing risk level will there be an auto square off? which position gets auto squared off? The other underlying may be up and that call might be showing a loss. Do I have any control on which position gets squared off? IMO, nothing needs to be squared off since there is no margin risk on any position. They are COVERED calls and any RMS should recognise that fact. If not, is there any way I can mark some position as a covered call position and pledge equivalent number of shares?
– Sorry for too many questions. Thanks,
1. Currently we are not, very soon we will as we intend to provide margins without even pledging (stocks lying in demat).
2. How much is still not decided. But for now, there is no charge. It will be charged based on how much margin used.
3. Yes, you are the owner of the stock, you will get benefit of all corporate action.
4. ALL MTM losses has to be paid in cash to the exchange. So we usually tell clients to keep anything between 10 to 20% of the margin required in cash.
5. Same as above.
6. No, it is all treated as call option writing. No margin benefit you get because you are writing calls on the same stock.
7. Unfortunately exchanges won’t recognize this as covered calls. All losses is debited immediately whereas all credits is received on T+1. You will not have control on what gets squared off first. So it is best to have some additional cash for all MTM losses.
Sir, Would it be Pledge or Pool transfer.? Coz in case of pledging the shares, our DP account get sealed by you which can’t be transferred even after selling for those stocks (which are in pledge), you need to let it released after selling it. Is it correct?
A follow up question on this one: is it possible to request Zerodha to sell shares that have been pledged by an account holder (via phone/email)? Also, if this is possible, can such an order be a Limit order or will it only be a market order?
Yes, you can send an email to unpledge. Yes both limit/market order is possible.
Dear Nithin
thanks but I guess it is not fully clear, perhaps because I didn’t ask the right question. Allow me to ask with a hypothetical example:
Let’s say I have Axis Bank stocks worth roughly 1lacs pledged and as a result have a margin of about Rs 70k (after haircut; I’m not sure the haricut is 30% but let’s assume for the moment that’s the case) Now let’s say I use this margin plus a little cash and buy futures to keep overnight. Next day markets cracks down and I have heavy losses – so much so that the cash isn’t enough to cover MTM losses.
Can I then send email (or phone) instructions to zerodha to unpledge+sell immediately and cover the losses?
Yes, you can send an email.
Vikesh, it will be a pledge. So we take the shares from your demat and depost it with NSCCL (NSE) directly, and this margin gets released for trading F&O to your account. If you want to sell, you will have to first unpledge and only then sell.
I have 50000 stock in south indian bank at ambalalshares and pledged them with axis bank and created a overdraft account for the stock, can i do this also in zerodha.
Yes, you can pledge the stock with us and take margin for trading F&O.
Hope you will provide the option to the customer of –
either
1) Pay Interest on margin and let the shares in demat
or
2) Pay pledge-release fees and no interest on margin (the present system)
Somehow your reply above did not have a “Reply” button next to it so I am asking it here. What is the right way of doing this?
Thanks,
PD, This process of manually having to pledge is something we will be stopping soon. It is quite painful operationally and also since the margin can’t be used for options/stock buying, it also causes some confusion. Will keep you posted on what route we take.
” if the stocks you hold has a 20% haircut ” whats haircut? and in which chapter of the module this term was explained??
Thanks for such a nice app on mobile android will also suggest to show volumes on app.
Dear sir,
I am a new trader in zerodha. Can you please tell me what is the exact square off time for intraday trade i.e BO. In your site time has mentioned as 3:20 but today my trade has square off at 3:15. And for 5 mints i had lost Rs. 400. Please clarify it.
Regards
3.20 is indicative time, sometimes it can be a little early or later based on market scenario. Best not to use BO and MIS till the end.
ok sir, thanks
Dear sir, there is only 3 times trading limit for intraday.( A and B . Both grade share). Compare to others too less. plz clirify me is this right or not?
It is upto 20 times based on the stock. Check this list: https://zerodha.com/margin-calculator/Equity/. If you use cover orders/bracket orders while trading, you get higher leverage than what is on this list. Check this: https://zerodha.com/margin-calculator/BracketCover/
Pls reply urgently as soon as possible,
I have entered in 4 fno stock futures position yeterday, while entering i have sufficient funds, later today wen i checked my acc is short of 18k funds, may be due to MTM..My question is today will get chance to exit and get some funds or is there anything like u will squareoff to provide for the margin
Varun, if you have any urgent query call our support numbers. If the margin in your account drops below the minimum SPAN margin, it gets squared off usually between 3.10 to 3.30pm.
Nithin Sir, I’ve read a lot of time the technical word SPAN & Exposure margin but not getting a clear meaning of it! can you please explain it?
Is there a way to pull daily margin values for CO or MIS using a pythong script?
No
sir i sold my share but its showing in margin available not n the funds why?
Hey Rahul,
The funds that you get from selling stocks is actually credited to you on the T+2 day, i.e., if you sell a stock today, you’ll receive the credit of the proceeds only on Friday. Until you receive credit, you cannot withdraw this fund. As such, you see this as a margin until then. Read more about the settlement process here: https://zerodha.com/varsity/chapter/clearing-and-settlement-process/
Hi Nitin,
If you could arrange the leverage for equity delivery trades for a week like 5 to 10 times would be helpful. The investor can expect bull trend and helps nations to uptrend attracting the investors.
Regards,
Mahendra
Margin policy coming soon for delivery reading…I heard this from last 7 months but when you started?
Zerodha is only who didn’t provide margin for delivery trading
Dear sir,
I have an account in zerodha I have a doubted.
Suppose I invest in X stock at 10,000 Rs investment at 100 rs * 100 quantity on January 2018 and wait for June 2018 in between at March or April month this stock is delisted by NSE or BSE due to some other issue In that case what happen.
Is investment value as per current value (March month) will added in my demat account or i should take some other step for return back my investment.
Waiting your positive reply…
If a stock is delisted for regulatory reasons then there is no way for you to sell unless the issue is resolved. However, if a company goes for a voluntary delisting then there will be a window wherein you can tender your shares at a price specified by the company.
Whats delisted? In what way it affects Intraday/ delivery trading?
Sir
Pls add weekly expiry dates also in the margin calculator
The margin requirements are the same as that of the monthly contracts.
So, are you saying for a particular strike the margin for contract expiring on 2nd July will be same as of contract expiring on 9th July? Doesn’t seem to be right, as for the same strike margins are different for monthly contracts (time decay has its role to play i guess)
Also, the margin for weekly options will be same as of current month contract?
This shouldn’t be an issue anymore. We now show the margin required on the order window on Kite. Read more here.
When will you guys offer trading in overseas market at least cash markerts like USA
Something we’re working on right now, Akhil. Should be available in a few months.
upto what maximum capital investment MIS margins will be applicable?
Hi nitin,
We have some margin(fund) in our demat acc
In equity intraday trade we used that margin with excess margin given by zerodha
That excess margin has any charges.?
What charges value?
How it will deducted?
Like in equity intraday trade I buy CANBK 1000 share for 140.
This total value wil be 140000
But in my fund I have only 40k,
Then excess 1 lac will be given by zerodha, that 1 lac is chargeable
What is charge & when it will deducted?
But also in trade actually it is showing that Amy is used less than 40k, what is that actually i don’t understand, can u explain.?
Zerodhas kite app is very bad.
Sometimes the app is hang
How much to invest in commodity fund margin please tell
How much is upto you. You can check out margin required to trade different commodities here: https://zerodha.com/margin-calculator/Commodity/
Great explanation.
I never spoke to any person in zerodha office. I dont know how to make call with the number given in the website. Please help me. I want to trade in commodities and currencies. I cannot buy huge quantities in index option and stock option. Only a few quantities are accepted. Please help me.
You should check out the Kite user manual, Zo.
Will Margin be available someday…
Shouldn’t you take a re look at the margin allowed for MIS orders. I have a feeling that the system has been designed to calculate margins according to the price of the stock. In actuality, the smaller value stocks are far more disastrous and prone to drastic movements than the high value stocks. However, for tried and tested shares such as HDFC and Reliance, you’re giving such a miserable margin amount whereas when I check margins for dangerous shares that make rapid swings like anything such as Yes Bank, you’re giving 15 or 20 times margin.
Margins are calculated using an algo called SPAN that determine margin requirements according to a global (total portfolio) assessment of the one-day risk for a trader’s account.
Sir,
On the question of margin and leverage, as long as we have squared off our existing positions, our entire funds are back with us for trading again right? Is this margin limited to a day or per trade irrespective of how many trades we place.
Take for example I have 100 Rs. There is 15x leverage for stock Tata Motors. So I buy shares worth 1500, book minimum profit, place an order again because I still find it bullish and I exited early, and so on. Can I keep on placing orders and exiting as many times a I want? I think this would be an easier option rather than trying to repeatedly keep editing several trades that get placed, but I worry that another order may get blocked.
That would work, yes.
Sir leverage provided by zerodha is chargeable of any form(means interest on leverage)
Man lo 10 times leverage mil raha h
Mere account me 40,000 Hain to me 4,00,000 ke share equity intraday me purchase karta sham me sell kr deta
To kya muje 3,60,000 jo broker ka amount use Kiya tha uspe broker ko interest Dena hoga?
2) agr Mera trade loss me Jane laga to broker automatic square off kr deta hai…kitne loss me Jane per ye bataiye
Hi Aftab.
1. No interest charges.
2. This depends on your position.
Can I short on margin?
Are we used balance capital for crude oil which is already used in options ?