Check All Margin Calculators
Zerodha Margin calculator is an important tool the clients of this discount broker look for. Although, the broker provides limited margin values but we have tried to be detailed out in the break up at each segment level.
This Zerodha margin detail page will mention the specifics on the exposure offered across Equity, Commodity and currency.
Zerodha Margin Calculator Review
We are assuming that you understand how the concept of Margin works in the stock market. How it can help to amplify your profits and at the same time, heighten your losses as well. Thus, we always advise that you should use the concept of margin on your trades only if you understand the risks and implications associated with it.
Now, before we get to the business and talk about different Zerodha Margin policies, list of margin across trading segments and so on, let’s digest some important notes about how this concept works within Zeordha’s eco-system. We will also talk about how it impacts your trades and take away the profit.
How to Use Zerodha Margin Calculator?
Using this Zerodha margin calculator is one of the simplest ones. You don’t really need to do anything apart from searching for the specific scrip or investment product in different asset types.
Most of the times the scrip values are displayed right in front of you. However, if that is not appearing in the initial display, you can always search for it.
For instance, if you are looking to check the latest zerodha margin offered for Zinc, you just need to scroll down to the Commodities section, search for Zinc using the search bar at the right part of the screen and that’s it, the latest margin values offered by the discount broker for that commodity will be displayed to you.
This is unlike most of the margin calculators where you need to first look for the scrip and all you get to see is the margin multiples. Here you get to see the different types of margins available with information like expiry date, span margin and so on.
Zerodha Margin Calculator For Equity
Last updated 20th November 2019
Let’s talk about Zerodha Equity Margin first. This is one of the most popular trading segments and at the same time, it reciprocates with a promise of reasonable returns too. Nonetheless, do not forget to perform a thorough analysis of the stock before employing margin on top of it.
You may get a margin of anything in between 3 times to 20 times depending on the stock and the order type. If you go ahead and put an MIS, your leverage is in the range of 3 to 10 times and the order will get auto-squared off around 3:20 pm if you do not do it yourself manually.
There is an option to use cover order as well, where you are required to put a stop-loss as a compulsory metric. With this taken care of, the risk level is mitigated and your Zerodha Equity Margin can fall anywhere from 6 to 20 times.
Here is the list of stocks with details on how much margin you get depending on the order type (MIS (1x) allowed on all stocks except mentioned in this list).
Feel free to use the ‘Search‘ functionality to look out for the stocks you are interested in. And the search can be done across any column and not just the scrip name.
Furthermore, you can skip to the specific page as the stocks are sorted alphabetically.
For more information, you can check this detailed Zerodha Equity Margin review as well.
A lot of traders tend to ask whether Zerodha provides margin against shares.
Well, the answer to that query is yes, it does. Based on your stock and ETF holdings, you can get margin values through the process that is called ‘Pledging’. It is an industry norm where most of the stockbrokers provide this provision.
There is a specific fee of ₹60 + Taxes that you need to pay per round of pledge irrespective of the number of shares being pledged.
Zerodha Margin Against Mutual Funds
Then a few other investors ask whether they can use Zerodha margin against the mutual funds they hold in their portfolio.
Well, this facility, as of now, is NOT offered by the discount broker and thus, you cannot pledge your mutual funds in order to avail Zerodha margin in your trades.
Zerodha Margin Calculator Intraday
For intraday trades, the zerodha margin values have been listed above with the details of each scrip and the corresponding CNC and MIS multiplier. However, just to give you a quick summary, here are a few details:
While you use Zerodha margin for intraday trading, depending on the scrip, you can avail a margin in the range of 3 to 20 times. Although that is a wide variance of margin, however, it has a lot to do with the stock volatility.
Within Intraday trading, you can use zerodha margin at two levels:
- MIS (Margin Intraday Square Off)
- Cover Order/Bracket Order
Here are the details:
1. Zerodha Margin Calculator MIS
Here you promise the trade to be kept at an intraday level, where, you end up squaring off your position before the market closes for the day.
You get a range of 3 to 14 times of your trading account balance in this product type.
The values of margin can be seen in the table displayed above under the MIS multiplier column.
2. Zerodha Margin Calculator For BO & CO
When you use the order type as Bracket order or cover order, you put a stop-loss against your trade as a mandate. When you do so, there is a huge amount of risk mitigation happening since even if the market goes against your position, you will end up incurring a limited loss.
Thus, the Zerodha margin range, in this case, is 6 to 20 times.
Having said that, this needs to be understood that Zerodha automatically squares off intraday trades position before the market closes. However, when it comes to MIS/CO/BO orders, the onus of closing the position lies with you. If that is not done, the order is converted to Cash and Carry.
You have to make sure that necessary cash is available in the account otherwise the position will be manually squared off by the Zerodha team without any margin call.
Zerodha F&O margin Calculator
Similarly, if you are someone who likes to trade in the equity derivatives segment, you need to use margin in a different manner.
At the same time, you need to consider a dimension called – Expiry date since while trading in calls and puts, you would need that information and the corresponding margin values that you can avail on those specific dates.
- Contracts under NIFTY allowed: 10550 TO 13550 CE & PE
- Contracts under Bank NIFTY allowed: 31300 TO 31900 CE & PE
- There are NO securities banned as of now
Zerodha Margin Span
For Zerodha Margin in the equity derivatives segment, here are the details for your reference:
Few Considerations that need to be taken care of while using Derivatives margin:
As per the new circular by SEBI, Zerodha and all the registered stockbrokers are required to collect the total exposure as well as span margin so that the derivatives positions can be carried forward the next trading session. Thus, its client’s responsibility to have a reasonable amount of margin in the account.
This will help in avoiding any penalty and automatic squaring off of the positions held up.
Zerodha Margin Calculator Options
Under equity options trading, you can place cover orders as well along with NRML & MIS orders. While placing cover orders with Zerodha, you need to have a relatively low margin requirement for overnight trades. These trades are settled with the National Stock exchange on T+0 basis.
Zerodha Commodity Margin
Moving ahead, let’s talk about Commodity Trading margin.
The below-displayed table talks about Zerodha margin provided at each commodity level with the corresponding lot size. This gives you a decent idea of how much investment you need to put in while using the margin provided for that commodity.
Furthermore, there are a couple of products with different margin values discussed below:
NRML is the normal order and can be held till expiry with a condition that the margin is present in the trading account.
MIS: Margin Intra-day Square Off gives you an additional margin starting from 10 am every trading day till before 25 minutes market close.
Here are the details of the Zerodha margin across different commodities open for trading:
This needs to be noted that Zerodha does not levy the extra 5% special margin, thereby, reducing the margin requirements for NRML trades.
Zerodha Margin Currency
Be aware of the fact that currency, like commodity trading, has its volatility dependent on the global markets as well. Indian stock market does not allow you to trade in Forex, but you can certainly trade in some of the regulated international currencies that provide a reasonable promise of investment returns.
Nonetheless, for all the investors and traders looking to put their money into currency trading – here are the margin values you are going to get if you are a client of Zerodha.
Zerodha Margin Requirement
While you use margin in your trades, there are specific requirements and policies that you need to adhere to.
Zerodha is pretty clear in the values or the range of margin values it has to offer across the trading segments. For instance, in intraday trades, you can avail margin in the range of 3 to 20 times while there is no margin offered in the delivery segment.
Thus, the client needs to have sufficient balance in his or her trading account in order to take corresponding market positions.
Furthermore, when it comes to commodity trades, margin values may change depending on the market conditions and volatility. For MIS trades, 50% of the total margin is needed and in case of NRML orders, 100% of the total margin is a requisite.
The requirements are similar in the case of MCX as well with an exception where the margin is provided across commodities except Brent Crude and Silver 1000.
Lastly, if you fail to produce the margin in your trading account, the RMS team may decide to square-off your position and save any further damage.
Here are the square-off timelines you MUST remember:
- Equity or Cash: 3.20 pm
- Futures trades: 3.20 pm
- Currency futures: 4.30 pm
- Commodity: 25 minutes before the market session closes
Zerodha Margin – Points to Remember:
- Margin policies can change anytime depending on the market momentum and any direct or indirect impact on the specific sector, both positively and negatively.
- You are supposed to settle the margin amount within a stipulated time frame depending on the trading segment.
- On almost a similar note, the funds you get after selling stocks gets credited to you on T+2 day, although it can still vary depending on the trading segment.
- The auto-square off time for orders is around 3:20 pm on any trading day. Also, it is more of an indicative timing and can be plus-minus a few minutes.
- You get higher margin if you trade in Bracket or Cover orders
There are some more points that we will discuss as we move ahead and talk about the Zerodha margin provided across different segments.
Zerodha Margin FAQs
Some of the Important Questions You might have about Zerodha Margin:
Q. Does Zerodha give margin to its clients for trading?
A. Yes, you can avail margin trading using Zerodha. However, these margin values may change based on the market conditions and volatility of listed entities.
Q. Is there any upper limit on the Zerodha Margin I get? For instance, if you provide a margin a 10X on a specific stock and I want to invest ₹25 Lakh, will you go ahead and provide me with leverage of ₹2 Crore+?
A. There is no limit on the margins you can get irrespective of the amount you are looking to invest.
Q. The margin value was different yesterday than what is being provided today. How?
A. Yes, margin values change every day.
Q. Are there any separate charges in order to use Zerodha Margin?
A. No, you are supposed to pay just the brokerage and the taxes levied. There are no separate charges added when you use margins on your trades.
Q. Do I need to keep a minimum balance in order to use the margins provided by Zerodha, especially when I use MIS orders?
A. No, there is no such minimum balance you need to maintain. Although, you could use the funds in your Trading account as margins in your trades.
Q. Are margin values provided for derivative trading? How is the segregation done with different order types?
A. Yes, 2.5 times for intraday (using MIS) and you can avail Zerodha margin up to 4 times if you are using bracket and cover orders.
Q. Does Zerodha or any other stockbroker use the blocked margin amount for their own business? Is my money safe if I get the amount blocked or shares pledged with a broker?
A. Exposure amount is blocked by the exchanged. Client funds cannot be used for any other business needs.
Q. Can I withdraw my margin amounts?
A. No, you cannot.
Q. Does Zerodha provides a margin for stocks listed on NSE?
A. Zerodha provides margin on stocks listed on NSE. Check the ‘Zerodha Margin Calculator for Equity’ section above.
Q. Does Zerodha provides a margin for commodities listed on MCX?
A. Yes, it does. For more information, you may check the ‘Zerodha Margin Commodity’ section above.
Do you have any specific queries or questions regarding Zerodha Margin on Equity, Commodity or any other trading segment?
Mention your concern in the comments below and we will try to answer that as soon as we can.
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Here is a quick look at some of the other margin calculators available for you:
More on Zerodha
If you wish to know more about this discount broker apart from Zerodha Margin, here are a few reference links for you: