Comment on Query of the Day
commented on
13 Sep 2013, 12:06 PM
What is the margin required for trading futures at Zerodha?
1. For Equity/Index/Currency Futures
“With NSE launching the “T+0″ same day settlement scheme and Zerodha opting for the same, your margin requirements for trading futures on NSE will come down by 20% effective May 20, 2013. So, for example, NIFTY margin requirement for an overnight position which was around Rs 30,000/lot is now reduced to Rs 25,000/lot. The new SPAN margin files is available on our backoffice. If you don’t know how to check the SPAN margin file, check out this blank”>blog”
What the above means is that we are among a few brokers who settle with NSE on T+0 and hence the margin required for overnight futures positions will be the lowest in the industry. The SPAN margin file which shows this is available on our backoffice.
If you need a higher leverage for intraday, you can use product type as MIS and you will be allowed to trade with only 40% of the total margin as per the SPAN margin file. This will be allowed till 3.20pm. Currency futures won’t get this benefit.
If you need an even higher leverage, you can use the product type as blank”>cover order and you will now need only 25% of the total margin to trade till 3.20pm. Again not allowed for currency futures.
2. For Commodity Futures
To trade for overnight, you will need 100% of the margin as per the commodity margin file. For intraday if you use the product type as MIS, you can trade the same with just 40% of the overnight margin upto 25 minutes before close of the market.
Cheers,