Power of Attorney.<\/a>\u00a0\u00a0<\/p>\nFor all those who trade only Futures & Options, please understand that you don’t need a Demat account regardless of whether you’re an Intraday trader or a positional (overnight) trader. All Futures & Options are contracts which have an expiry date and hence there is no concept of a Demat Account for trading Futures & Options.<\/p>\n
Presently in India, we follow a T+2 rolling settlement cycle for Delivery based trading. What it means is that if you buy 100 shares of Reliance on Monday (T day as we call it) for delivery, the shares will come to your Demat Account only on T+2 day (Wednesday evening). Similarly when you sell stocks from your Demat Account, you’d be able to withdraw the money (Sale credit) only on Wednesday (T+2 day), you can however use the credit on T day itself to make fresh purchase of Equities. Once the stock is in your Demat Account, you can keep it for as long as you want. Annual maintenance charge (AMC) for a Demat account at Zerodha is\u00a0Rs.300 which is collected at the end of the financial year on a pro-rata basis and the Demat account opening charges are Rs.100<\/p>\n
Commodity Trading Account<\/h3>\n
A Commodity Trading account is what you open with a Trading Member (Commodity Broker as you call him) of recognized Commodity Exchange (MCX, NCDEX etc. in India).<\/p>\n
Similar to an Equity Trading Account, you will have to transfer funds into your Commodity Trading Account before trading Commodity Futures (Commodity Options have still not started in India). All settlements again are done on a T+1 day basis. If you make profits you get it the next day, but if you make a loss it is debited the same day.<\/p>\n
There are no Annual Maintenance charges for your Commodity Account at Zerodha and you can trade on MCX (Multi-Commodity Exchange). Only futures trade on MCX and hence there is no need of a Demat Account for trading Commodities. At the end of the contract, the Future is cash settled (if you haven’t already squared off the position)\u00a0 or you can opt for physical delivery (not allowed at most of the online broking firms, including Zerodha).<\/p>\n
Important things to remember while opening an account with us:<\/h3>\n1. Open only “Trading Account” if:<\/h4>\n
You intend to trade only Futures & Options and\/or Currencies, be it Intraday or Positional. Demat account is not required.<\/p>\n
2. Open “Trading and Demat” if:<\/h4>\n
You intend to take delivery of Stocks (buy and hold stocks overnight) along with trading in Futures & Options and\/or Currencies.<\/p>\n
3. Open “Commodity Trading Account” if:<\/h4>\n
If you intend to trade only Commodities.<\/p>\n
Welcome on board,<\/p>\n","protected":false},"excerpt":{"rendered":"
Traders, At Zerodha you can open an Equity & Derivatives Trading account, Demat account and Commodity Trading account. Let me explain what can be done with each of these accounts: Equity & Derivatives Trading Account An Equity & Derivatives Trading account is what you open with a Trading Member (Stock Broker) of a recognized Stock […]<\/p>\n","protected":false},"author":176551,"featured_media":2047,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[531],"tags":[101,67,100,99],"class_list":["post-27","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-demat-account","tag-pricing","tag-trading-account","tag-various-accounts"],"yoast_head":"\n
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