Margin trading has always been a popular concept among traders. It allows them to trade for more value of the stock or other financial instruments than the amount of cash they hold. Margin trading helps in multiplying the profits but at the same time heightens your risks. Therefore, it is always advisable to use the concept of margin only when you understand its risks and implications very well. In this article, you will learn about the Zerodha Margin Calculator.

How to Use Zerodha Margin Calculator

Zerodha margin calculator is an important tool that this discount broker provides. It is very easy and simple to use. All you need to do is look for the script or investment product that you want to trade and look for the margin against it. Every script or product has a different margin. Like for example, you want to trade in the copper commodity. All you need to do is search for the copper commodity and look for the latest margin value given by the discount broker. This service is very different from what other brokers provide in the market because here you get the exact margin multiples that can you avail. Moreover, the information of margin comes along with other data like the span of margin, expiry of the contract, etc. which is very useful for the trader.

Video Credited: Zerodha

Zerodha Equity Margin Calculator

Zerodha margin calculator promises good returns when the trade is taken with a thorough analysis. Before employing the margin amount, you must carefully analyse the stock. Zerodha provides a margin of anything between the range of 3 to 20 times depending on the type of stock and type of order. When you put an MIS (Margin Intraday Square Off) trade,the leverage range available to you is 3 to 10 times. When you trade using the margin money, you must square of the transaction around 3:20 p.m. in case you do not do so, Zerodha will do it automatically. When you are using the margin to trade, Zerodha provides you with an option to use the cover order where you must put a stop loss in place. By using the stop loss, you mitigate your risk level and your equity margin would be between 6 to 20 times.

Let us learn whether Zerodha provides margin against shares.

Zerodha Margin Against Shares

If you are a trader you must want to know whether the margin on shares is available for trading. The answer to it is yes. Zerodha provides a margin on your stock holding and Zerodha ETF holdings. Going with the industry norm, you can pledge your holdings and avail the margin against the shares. Such a margin can be used for derivatives trading, intraday trading, etc. However, you must pay a fee of Rs. 60 along with taxes per round of pledge.

Let us now learn whether Zerodha margin is available against mutual funds.

Zerodha Calculator: https://zerodha.com/margin-calculator/SPAN/

Zerodha Margin Against Mutual Funds

Many traders want to know whether they can use their mutual fund holdings in their portfolio to avail of the Zerodha margin facility. As of now, this facility is not available and the discount broker does not provide the pledge facility on mutual funds.

Let us now learn more details about Zerodha margin calculator for intraday.

Zerodha Margin Calculator For Intraday

Zerodha lists margin values for every script along with its CNC and MIS multiplier. With the range of margin available, you can avail of a margin of 3 to 20 times depending on the type of script. Stock volatility determines the margin available on a particular script. For intraday trading you can use two types of margin; Margin Intraday Square off (MIS) and Cover Order/Bracket Order.

  • Zerodha Margin Intraday Square Off (MIS)

By using this margin to trade, you promise to square off the position before the closing of the stock market. Here you get the margin in the range of 3 to 14 times of the trading account balance.

  • Zerodha Margin Calculator for Bracket Order / Cover Order

Bracket order or cover order means you are taking a trade with a mandatory stop loss in place. By having a stop loss, you mitigate your risk by closing your position with limited loss. The Zerodha margin in the case of BO or CO is 6 to 20 times. However, you must remember that Zerodha will not atomically square off your position like in the case of MIS before the closing of the market. Here the onus of closing your trade position lies in your hands. If it is not done by you, the order is converted to cash and carried forward.

Let us now learn about Zerodha F&O margin calculator.

Zerodha Futures and Options Margin Calculator

When you trade in the equity derivative segment you must know how to use the margin in a different way. While taking a margin trade you must consider the expiry date when using the calls and puts. This information is important as you can avail of different corresponding margin value for the specific dates. Before taking the position in the derivatives segment you must know that as per the circular of SEBI, the stockbrokers must collect the total exposure and margin so that derivatives can be carried forward to the next trading session. Thus, it is your responsibility to have a sufficient margin in your account for avoiding penalties and automatic squaring off the trade position.

Let us now learn about Zerodha commodity margin calculator.

Zerodha Commodity Margin Calculator

For trading in commodity, Zerodha provides different commodity margin values. NRML is the normal order in which you can hold your position till the expiry if you have sufficient margin in your trading account. In the case of Margin Intraday Square off (MIS) provides you with an additional margin from 10 a.m. till 25 minutes before the closure of the market.

There are a few important things that you must know regarding Zerodha Margin Requirement.

Zerodha Margin Requirement

Since Zerodha provides a wide range of margin products across different trading segments, you must have a sufficient margin amount to take the corresponding positions. The margin value in the commodity market varies depending on the market conditions and volatility. If you fail to deliver the margin amount on time, the Zerodha team will square off your trade and protect themselves from any further damage. Zerodha is one of the leading discount brokers of the country. Its margin policies keep changing depending on the market conditions. It is always advisable to settle your margin amount on time to avoid legal action. If you want to learn more about the stock market, you can visit Trading Fuel. By visiting our blogs and articles you get to learn about the important and latest information about the market. Moreover, everything on our website is free of cost. To subscribe to us or know more about us, you can contact us via email or phone.

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.