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Zerodha Intraday margin allows the Intraday traders to trade more than the available cash balance of their trading account
Let’s dig out the specific details that you may want to know while using margin trading through Zerodha.
Zerodha Intraday Margin Calculator
The Intraday traders are supposed to square off their position before the end of the trading session of the day. If it remains an open position, it is automatically squared off by the exchange on the next trading day.
For the intraday trader with Zerodha, the Intraday Margin is available in the range of 3 to 20 times for the traders.
We can see that the range of margin has a wide variance, that is because the margin value is not the final value but it is decided on the basis of some more factors like the stock volatility and lot size (more on that later).
An Intraday trader with the Zerodha can avail the Intraday margin at two levels.
- MIS (Margin Intraday Square off)
- CO (Cover Order)/BO (Bracket Order)
We will discuss the details of above both levels of Intraday margin with their value after going through some more discussion about the Zerodha Intraday margin.
Zerodha Intraday Margin Limit
Following are the segments in which a trader can avail the facility of Intraday trading.
Now, Let’s talk about the method to check the value and scrips available to trade with the margin.
How to check Zerodha Intraday Margin?
First of all, it is very important for a trader that he/she must have information about the scrips in which the stockbroker is providing margin. After that, the second step is to get information about the value of the margin offered.
Most of the time, you would get the name of scrip and the margin value in front of you on the screen but, if it is not available on the initial screen, you can go to the search bar and type the name of scrip.
You will find the scrip and their margin value right on the screen.
For example, if you want to check whether the stockbroker is offering margin on ACC or not, you need to scroll down the equity section, type the name of the scrip (here it is ACC) and if the company offers margin on it, the value will be displayed to you on the screen.
Now, we are going to start a detailed discussion on the Intraday margin offered by Zerodha.
Zerodha Intraday Margin Charges
There are no specific charges or subscription plans in order to use Zerodha Intraday trading.
However, you need to make sure that whatever leverage you pick from the broker is returned back within the requisite timelines. If you fail to do so, then you will be required to pay off 18% interest on the loan taken.
This is the only charge levied by the broker (applicable to all the stockbroker providing margin trading) and that too when you fail to pay back.
Otherwise, there are no separate intraday margin charges.
Margin Intraday Square Off Zerodha
When you start trading in using Zerodha equity margin and square off the position before the closing of the trading day that is before 3:30 PM, it is called Intraday equity trading.
As an intraday trader, you don’t hold the position overnight so the margin offered by the stockbroker is in the range of 3 to 20 times on approximately 150 scrips for Intraday.
Following are the two product types at Zerodha with which the company offers leverage.
MIS (Margin Intraday Square off):
The product type Margin Intraday Square off means you are committed to square off your trade Intraday.
It does not matter whether you are earning the profit or bearing loss, you are supposed to square off your position before the closing bell. Zerodha offers margin on Zerodha intraday trade in the range of 3 to 14 times.
The range is decided on the basis of risk and the volatility associated with a stock.
CO (Cover Orders) & BO (Bracket Orders):
Zerodha also allows you to trade with Cover Orders and Bracket Orders. Both are the unique intraday facility offered by the stockbroker to its clients which has a compulsory stop-loss order.
Also Read: Zerodha Bracket Order
The stop-loss order stops you from moving towards a higher loss in the equity market. Since the risk associated with the CO & BO orders is low, the margin offered by the stockbroker is low and the leverage offered is high.
As a trader of Cover Order and Bracket Order, you will get leverage in the range of 6 to 20 times (Almost double than MIS).
Also you can use IOC in Zerodha, which allows you to immediately cancel or execute the order. The order gets canceled if it doesn’t meet your set criteria. You can avail of this facility at their app in the order validity section.
Margin requirement differs based on the price of Stop loss.
Zerodha Intraday margin for Futures
If you are a trader of equity futures, you need not worry much about the margin offered by the stockbroker. To buy a particular amount of futures you need a small portion of it which is called margin.
The margin requirement of futures is determined by different exchanges in India.
In case of Zerodha Intraday Margin for the equity futures, the trade settled by Zerodha at NSE is T+0. Hence, the requirement of margin to trade in equity future at Zerodha is lowest.
To check the margin value and the scrips, you can go through the below-mentioned table of margin:
Zerodha Intraday Margin for Options
As far as options trading is concerned, the margin availed depends on the trading segment you are into. If we talk about the specific values here, then following Zerodha intraday margin for options is provided:
- Index options, 35% of the NRML margin is needed.
- Stock options, 45% of the NRML margin is needed
- Commodity options, 50% of the NRML margin is needed.
- Currency options, 50% of the NRML margin is needed.
Thus, in simpler terms, the margin values provided for options trading are not so high and thus, keep your expectations low if you are looking for high exposure low brokerage set up.
Moving Ahead, Let’s talk about the Zerodha Intraday margin offered for the commodity trading.
The below-mentioned table will display the name of the commodity and its margin level provided by the company at each commodity level. It will give you an idea about the investment amount you will be required to trade in the commodity by using the margin offered.
MIS: Margin Intraday Square off product type in commodity gives you an opportunity to trade with an additional margin starting from 10 am to the 25 minutes before the closing of the market.
Here are the details of the margin offered by the company across the commodities:
Zerodha Intraday Margin For Currency
The stockbroker also offers Intraday margin for the Currency segment. So, if you are the one who is looking to invest your money in the currency market, here are the details of the margin level offered by the company.
You can go through the below-mentioned table to check the Intraday margin level for currency at Zerodha:
Zerodha Intraday Margin: Points to Remember
As a trader of Zerodha Intraday Margin, you need to remember the following points:
- The Intraday square off the timeline for different segments are as follows:
- Equity/cash/stocks: 3:30 pm
- Future Trades: 3:20 pm
- Commodity trading: 25 minutes before the market closing session.
- Currency futures: 4:30 pm
- Although Zerodha run square offs automatically, a trader is supposed to square off their trading position according to the above timelines.
- Zerodha offers a higher margin to the traders of BO &CO.
- The margin value varies according to the risk and volatility associated with the particular scrip or segment.
- If you are a trader with Zerodha, the settlement cycle is T+1 in case of F&O and T+2 in case of equity Intraday. The credit facility is available for intraday traders. A short margin penalty is levied, if use this unrealized credit to carry forward positions.
Zerodha offers Intraday Margin across the segment i.e. the equity, currency, futures, and commodity. The margin value offered by the company attracts traders towards the company.
Also, the stockbroker provides intraday margin on many scrip which a trader can check by going through the above-mentioned table of different segments.
In case you are looking to get started with share market trading or stock market investments, let us assist you in taking the next steps ahead:
More on Zerodha
If you wish to learn more about this stockbroker, here are a few references: