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Zerodha Margin/Exposure Limit for Intraday and Futures

Zerodha Track Record Of Best Online Stock Broker In India

  • Life

    4.2

    Company Rating

  • Life

    75+

    Cities Covered

  • Life

    5 Lacs+

    Orders Per Day

  • Life

    20 Cr Lacs

    Daily Turnover

  • Life

    3+ Million

    Our Client Base

  • Life

    4.5

    Mobile App Rating

  • Life

    4.2

    Company Rating

  • Life

    75+

    Cities Covered

  • Life

    5 Lacs+

    Orders Per Day

  • Life

    20 Cr Lacs

    Daily Turnover

  • Life

    3+ Million

    Our Client Base

  • Life

    4.5

    Mobile App Rating

 
 
 

Zerodha Account Opening Enquiry

 
 
 
 

Zerodha Margin Exposure Limit

Zerodha is the biggest stock broker in India in terms of the highest active clients. It was founded by Nitin Kamath, the CEO of Zerodha. They started their operations from 15th August 2010 in Bangalore. The only motive on which Zerodha focused on was to break the barriers that traders and investors usually face in terms of cost, support, technology and other trading platforms. Zerodha pricing structure and in-house technology successfully stands out and this makes it the largest and popular stock broker in India.
Zerodha 3-in-1 account facilitates its customers with easy and quick fund transfer facility. Zerodha is the safest stock broker because its ratio of complaints to active clients is among the least on the exchange. It is a zero-debt company. It does not focus on offering margin funding. It never keeps the client securities in the pooled account. It does not do proprietary trading with client funds.
Zerodha exposure and the leverage facility of Zerodha allows its customers to trade multiple times over the funds available in their account. It offers the margin exposure only on the intraday trades. There is no margin facility available on the delivery trades. The Zerodha intraday margin depends on the funds available in the account.

Zerodha Margin Limit
The Zerodha exposure allows its customers to trade multiple times over the funds in their account. The extent of Zerodha exposure is different for different sections and trades. Zerodha leverage depends on the funds in the customer’s account for Intraday trades in stocks.
Note: The Zerodha margin limit is different for different stocks.
You can take the help of Zerodha Margin Calculator to know the margin limit that is available on the Zerodha website.

Zerodha Margin Policy
The Zerodha Margin can be changed at any time based on the market volatility.
1. Stocks or Equity or Shares Trading:
a) Intraday Equity: Zerodha provides its customers the margin or leverage of between 3 to 20 times on around150 liquid stocks to trade for Intraday. The customers can trade intraday in Zerodha with leverage by using two of its products which are:
I. MIS (Margin Intraday Square Off)- When the customer uses this product, they commit to keeping the trade intraday. The leverage provided is based on the risk and volatility of the stock.
II. Cover Orders (CO) and Bracket Orders (BO)- These orders are the unique orders at Zerodha where you can trade intraday with a definite and compulsory stop loss. Usually the risk with such a position is low, the margin required is less and therefore, the leverage is higher. When the customer trades intraday using cover orders, the leverage he/she gets is 30% of the VaR+ ELM +Adhoc mandated by the exchange
Note: All the orders will be automatically squared-off around 3:20 pm but it is the trader’s responsibility to square off all open positions. All open MIS positions get converted to Cash and Carry (CNC) or normal positions. The company squares off all such positions if there are insufficient funds in the account.
Zerodha provides a higher margin on trades with Bracket order (BO) and Cover Order (CO)
b) Delivery Equity: Zerodha provides no leverage when the customer is executing delivery trades which simply means that if the customer is wishing to buy Rs. 1k stock as CNC, then he needs this Rs.1k in his trading account and similarly he wishes to sell Rs 1k shares with product type as CNC, then he needs these shares in his demat account mapped to their trading account.

2. Future Trading – Equity (Stock and Index), Currency and Commodity
Futures are inherently leveraged which means that to buy Y amount of futures the customer needs a small portion of it called as a margin in their account. This margin to buy futures is stipulated by the various exchanges.
For NSE, Zerodha settles with exchange on T&O and hence it has the lowest margin requirement.
When you trade futures at Zerodha you can use its three product types:
a) NRML (Normal): To take position as NRML the customer needs to complete the exchange stipulated margin, but once the customer takes a position as NRML he can hold the position till expiry, providing that the customer is maintaining such stipulated Exchange Margins Until expiry.
b) Zerodha MIS (Margin Intraday Square off): This service is used by Intraday traders as all the open positions get squared off before the end of the 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. The 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 the market gets closed.

Latest Intraday Leverages on MIS, BO and CO

Leverages for MIS are:

SEGMENT

LEVERAGE/MARGINS

Equity

50% of the VaR+ ELM +Adhoc mandated by the exchange

Index F&O

3.7X(27% of NRML margins )

Stock F&O

2.85X(35% of NRML margins)

Currency Futures

2X(50% of NRML margins)

Commodity Futures

2X(50% of NRML margins)

 

CO leverages for day are:

SEGMENT

LEVERAGE/MARGINS

Equity

30% of the VaR+ ELM +Adhoc mandated by the exchange

Index F&O

3.7X(27% of NRML margins)

Stock F&O

3.7X(27% of NRML margins)

Currency Futures

3.33X(30% of NRML margins)

Commodity Futures

3.33X(30% of NRML margins)

 

Note:
• The leverage offered is for the minimum stoploss set. For a higher stoploss margin will increase proportionally.
• The crude oil current month contracts will attract an additional margin of Rs.1,00,000 and other contracts will attract an additional margin of Rs. 50,000.

Bracket orders
Due to an expected volatility for Equity, F&O, and CDS, the bracket orders have been blocked. It will be allowed once the volatility will subside.




Frequently Asked Questions


Zerodha do not offer home pickup service of account opening forms. The customer is required to courier the forms at Zerodha Bangalore office. The forms can also be filled online.
Yes. Zerodha’s free Kite trading platform provides advance technical charts. The advance charts are provided by Zerodha are among the best in the Industry.
No, at present the investing in stocks is listed in foreign stock exchanges is not possible through Zerodha. If you are still wishing to invest in Apple, Google, Facebook, etc. then mutual funds are the easiest way.
Zerodha is completely an execution platform only. It does not provide any form of advisory or tips. We believe that traders and investors should make educated and informed trades based on the research and analysis.
Zerodha is an online discount brokerage model where only online trading services are offered to the customers or traders. It uses the latest and advance technology to serve its customers and has less branches and offices. The technology helps its customers to scale and reduce the operational cost which in-term helps them to maintain huge profits despite offering low-cost trading.
Zerodha charges an amount of ₹20 per executed order or .03% whichever is lower for equity, currency and commodity futures trading.
No, Zerodha does not provide the margin funding facility.
Yes, some of the services provided by Zerodha are free. It offers Mutual fund investment and brokerage free equity delivery trading. The brokerage fee for Intra-day and F&O trading is ₹20 per executed order or 0.03% (whichever is lower).
Yes, the BTST i.e. buy today- sell tomorrow facility is available in Zerodha. It allows the traders to sell shares before they deposit into your demat account on T+2 days.
Zerodha does not provide interest on the money that is held in the trading account. It does not accept any personal Fd’s as margin for trading.
Zerodha offers the service to place AMO orders. These AMO orders are placed after the market hours for the next trading day in advance. AMO (After Market Orders) allows the customers to place online buy/sell order before the stock exchanges are open for trading. The order timing for AMO order changes by the trading segment.
No, Zerodha doesn't offer any trading account on minor's name even if you are below 18 years, you can not open a trading account.
No. A customer can open only one trading account or demat account with Zerodha. You cannot open two trading accounts with same PAN number with Zerodha. Note: You can open other trading or demat account with the same name and PAN number with other brokers. But this can't be done with one broker because of SEBI regulations.
LTT in Zerodha stands for Last Traded Time. The last traded time shows when a particular share or contract was last bought or sold. It helps the traders to know the demand for a particular share on that particular day.
No, it is not compulsory to maintain a minimum balance in the Zerodha Trading account.
If the customer wants to change the bank account that is linked with their Zerodha account. The customer needs to submit the 'Account Modification Form' with a bank proof document. The steps to change the Zerodha bank account are: 1. Visit the Zerodha website 2. Move to the 'Download & Resources' section. 3. Download the 'Account Modification Form' 4. Fill the form, sign it and get a print out. 5. Attach the bank proof documents like bank statements, cancelled cheque etc., along with the form and send it to the Zerodha Bengaluru office.
Yes. Zerodha offers trading in forex but as per NSE we can trade only in USDINR, EURINR, GBPINR and JPYINR in India with any stock broker. You can trade in currency derivatives at BSE and NSE exchanges using the Zerodha trading account. The customer needs to enable the currency trading segment before starting the trading in currency.
CNC stands for Cash and Carry. It is simply a product code and if you use them to buy and sell shares on the same day, they will still be considered as Intraday trade. NRML (Normal) is used for overnight trading for futures and options.
In Zerodha the customer has to open a demat account along with the trading account. It does not allow linking of its trading account with a demat account from some other depository participant (DP). Note: • You can have multiple demat accounts if you want on your name with different brokers. • You can continue holding your Sharekhan demat account if you wish to do so. • You could transfer all your holdings in the Sharekhan demat account to Zerodha demat account at the time of closing the Sharekhan demat account. It is a simple process.
The Margin for Zerodha is reduced across all the segments including Intraday at BSE, NSE and MCX on 2 January, 2019. It is in line with the new margin policy introduced by SEBI. As per the policy, the brokers cannot offer ab additional margin to customers. The margins are now prescribed by the exchanges and are the same across the brokers.
Once you apply in Zerodha for opening an account, it takes 24-48 hours to get activated. Any kind of discrepancies in the submitted forms or documents can delay the account opening process.
An individual need to have 3 accounts i.e. Trading, demat and a bank account. Zerodha offers trading and demat account services to its customers. Trading account is required to place buy & sell orders and the demat account is required to hold all the bought securities in electronic form. The trading and demat account of the customer are linked to their bank account.
Zerodha is safe as any other stock broker in India. It is a genuine and the trusted stock broker and comes among the lowest risk broker in India. It is a debt free company and they only offer broking services. In the last 9 years, there is no single major violation has been reposted. Thus, it is the safest stock broker of India.
Zerodha offers truly brokerage free equity delivery trading and mutual fund investment. It charges flat Rs. 20 or 0.03% (whichever is low) per executed order for intraday trades.
Yes, Zerodha favorable for long term investors. Zerodha offers the Equity delivery brokerage at free. It automatically brings down the trading costs thereby helping a lot of money in the long term. It also offers commission-free direct mutual funds that results in additional earning of 1% yearly.
The SMS facility in Zerodha is optional and is charged at Rs. 1 per SMS.
You can place an MIS buy order in one exchange and the MIS short order in the other exchange. However, by the end of the trading day, both of these trades are required to be squared off individually on each exchange.
NFO stands for New Fund Offer. An NFO is the first time when a fund is offered for subscription by an AMC. The customer cannot invest in NFO through Zerodha Coin currently. However, you can buy NFO from the AMC directly.
All the orders will get squared off before the end of the day. IOC stands for 'Immediate or cancel'. It means that the order is executed as soon as it is released and in case the order fails to execute, then it is immediately canceled.
The Z Pin is the 4-digit telephone code. This is the customer’s personal identification number. This number is required to place orders through the call, trade desk and to raise support requests. Whenever the customer will call Zerodha customer support or call & trade desk, he/she have to authenticate themselves using the Z Pin code.
Yes, Zerodha offers trading in foreign exchange (currency). The customers can trade in currency derivatives at BSE and NSE exchanges simply by using the Zerodha trading account. The customer is required to enable the Currency trading segment before he/she start to trade in the Forex.
Discount brokers are the brokers that offers only online broking services to its customers and at a very low-cost. Zerodha discount broker uses the latest computer technology to offer online trading services to millions of customers. The brokerage charge for discount brokers are usually less than the traditional full-service brokers. Zerodha is an online discount broker.
The Zerodha is a depository participant of CDSL depository. This means it works as a service agent for demat account which is held by CDSL, one of the two central depositories.

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