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
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.