Zerodha margin calculator is an online tool developed in-house by the broker. This tool helps traders in calculating the margin/leverage required for buying or selling a particular stock on the firm’s trading platform. But many traders still don’t know how to use Zerodha Margin Calculator? We’ve got your back!
We are assuming that you are aware of the concept of margin in the stock market and the benefits & risks it involves. If not, you may know a complete detail on margin trading before moving ahead.
Coming back to the margin calculator online tool offered by Zerodha, it indicates the leverage/exposure provided by the broker. While anyone can use it online for calculating leverage, you must have a Zerodha Demat account or a trading account to be able to place such orders.
How to Use Margin Calculator in Zerodha?
From equity, to commodity and intraday trade you can use the margin calculator offered by Zerodha efficiently. The calculator keeps the trader aware of the margin money thus helps them to prevent the margin call.
Below is the detailed guide of the margin calculator use in Zerodha.
How to Use Zerodha Equity Margin Calculator?
If you are already a Zerodha user, you would know that the broker allows leverage on equity intraday trades. This, therefore allows the traders to buy stocks worth more than the actual capital they have.
Here’s how you use the Zerodha Margin calculator for intraday trading/ the Zerodha equity margin calculator:
Open any search engine (google or firefox) and visit the official “Zerodha Margin Calculator” page
On that page, click on “Equity” (that is on the top of the dashboard)
You will find around 450 stocks listed under “equity”
Note that there are two major rows here – “CNC” (cash and carry) and “MIS” (margin intraday square off). Under CNC you will only find 1x because it denotes delivery trades on which no margin is provided. MIS, on the other hand, denotes the leverage on Zerodha intraday trading
If you wish to know the leverage of a particular stock, type the name of that stock in the search section and you will be able to view its leverage under “MIS”
Now, besides every stock, there is a “calculator” option
To know the exact margin based on your “cash availability” and the “stock price” click on “calculate”
Once you do so, a calculator window will appear for that particular stock
Fill in the cash available amount and the stock price and then click on “Go”
You will now be able to view the exact number of your selected stock (under MIS) that can be purchased at the cash available and the stock price entered by you
This also means that a rise in the stock price would bring you profit while a fall in stock price would mean a loss.
For example, if you had set the stock price as 150 the number of stocks that can be bought was 1000, a fall in the stock price by ₹1 i.e, ₹149 would cause you a loss of ₹1000 while a rise of ₹151 would mean a profit of ₹1000
In the calculator window, there is a CNC section as well. The number appearing under it denotes the number of stocks that can be purchased as delivery with your given cash available amount
Also, if you have a considerable capital/cash available you may buy the “CNC” defined number of stocks in intraday. If the stock price happens to increase, you may earn great profits
The benefit of using “cash and carry” CNC is that even if the stock price falls, you can covert your intraday position to CNC so that your risks are reduced and you do not incur losses that you may have otherwise incurred in a day trade
Once you have made all the calculations using the Zerodha Margin Calculator, you can log in to your Zerodha account and place the order with the prescribed details.
Here’s how to use the Zerodha Margin calculator for F&O:
Visit the margin calculator web page of Zerodha and click on F&O on the top
Scroll a bit and you will find the calculator
Under “Exchange”, select either of NFO, MCX, and CDS as you desire
Now, under “product” you may select futures or options as per your need
Under “symbol”, write the name of the stock whose margin you wish to find
Finally, fill in the required quantity under “net quantity” and click on “Add”
Note that for MCX, you must enter the quantity in multiples of the lot size. If the lot size given is 100 for a particular stock, that means 1 quantity. 2 quantity means 200 lot size
Once you click on add, you will be able to view the initial margin, exposure and the total margin for your selected stock
Also, remember that the margin showed applies to CNC i.e. you can purchase the given quantity of stock in the calculated margin amount as “NRML” order
How to Use Zerodha Margin Calculator Equity Futures
If you wish to deal in Futures, choose “equity futures” on the Zerodha margin calculator page. The first thing you will see on that page is the various product types (NRML, MIS, CO, MWPL) and their usage/purpose.
If you scroll down, you will find the list of various stocks provided by Zerodha under equity futures” along with their expiry date, lot size, NRML margin, MIS margin, and MWPL (market-wide position limits) percentage.
Just remember that even the delivery orders (CNC/NRML) have an expiry date if you trade in futures. You can hold your order, as you normally would but only till the stock’s expiry date (which is usually the last Thursday of every month).
Now, you may either select among the stocks listed or simply type the name of the stock in the search section to know it’s the margin. When you do so, you will see the NRML margin the MIS margin as well as the MWPL % of the stock.
You may also calculate the exact margin as per the cash available and stock price of your choice by clicking on the “calculate” option (present beside every stock).
How to Use Zerodha Margin Calculator Commodity
The process is similar to the commodity trading segment as well. You just need to select a stock from the list or search for a commodity of your choice to know its leverage.
Besides, the Zerodha Commodity Margin is available as per the lot size which is equal to 1 quantity. If the lot size is 1700 then, 1 quantity of that stock included 1700 lots.
Coming back to the margin, you will be shown both – the NRML as well as the MIS margin for all stocks.
You can further calculate the exact commodity margin by customizing the “cash available” and the “price” as per your needs. Just click on the calculate option and the end of the column to do so.
The calculated number denotes the total number of stocks that can be bought at the given cash and stock price. This number is available for NRML as well as CNC orders.
Just visit the online page on the Zerodha margin calculator, select “currency” from the top and you shall be able to view the NRML and the MIS margin along with the expiry date, lot size, and the current price of each currency stock.
You may further customize your search by clicking on “calculate” where you need to fill the cash available and the price for a particular stock.
How to Use Zerodha Margin Calculator BO & CO
BO stands for bracket order while CO for cover order. These are special order types that tend to minimize or limit your losses due to the “stop-loss” amount that is set by the trader while placing such orders.
Moreover, BO & CO offers the maximum leverage and is considered the most profitable in margin trading.
To calculate the Zerodha margin on BO and CO:
Visit the margin calculator page of Zerodha and select BO & CO from the top
Now, scroll down and under “segment” choose NFO, MCX or CDS as per your need
Then under “symbol” select the stock whose margin you wish to calculate and enter the quantity you require
Then enter the stop-loss amount and click on “calculate”
Suppose you choose MCX as your segment and crude oil as your symbol, a default price and quantity will appear on the screen
This can be customized
Fill in your desired price, quantity (as multiples of the lot size) and the stop-loss price of your choice
Once you click on calculate, a box will appear showing the actual value, the margin required and the leverage of that particular stock
The “actual value” denotes the actual/NRML cost of that particular stock while the “margin required” is the amount you need to pay for the given quantity of stock labeled as BO or CO
Let’s have a quick overview of the leverage offered by the Indian discount broker – Zerodha.
The table below summarizes the exposure/leverage provided by Zerodha for different segments:
Zerodha, or any stockbroker for that matter, keeps revising their leverages. The information presented in this blog is as per the current scenarios. The objective behind this blog was to help our readers understand the usage of Zerodha’s margin calculator.
We have tried to cover every segment as the ways to calculate its margin. Hope this helped and you are now clear with the procedure.