In this post, I write about Zerodha Margin details and also provide the link to access Zerodha Margin Calculator 2024 using which one can calculate how much exposure is being provided.
What is Margin Trading
Margin trading is the act of borrowing money from broker to trade the securities. It is in general parlance known as “buying on margin”
So the trader puts in only certain percentage of his own money and borrows rest from the broker. Once trading is completed, the trader settles the money with broker
Suggested read : My detailed review of Zerodha and their offerrings
Pros and Cons of Margin Trading
Traders utilize the money borrowed from the broker to trader large quantity of shares and hence more profit.
However, on the other hand, if the trade ends up in loss, the loss is also amplified.
So margin trading is a double edged sword.
Zerodha Order Types
One can choose the order MIS to use the margin from Zerodha.
The CNC type is for delivery trade and does not involve any exposure.
One need to choose the type of order while placing the order.
Zerodha Margin/Exposure Details
Below table shows the segment wise leverage/margin provided by Zerodha.
Zerodha Margin Calculator
Zerodha provides margin calculator for all the scrips across all segments.
It has detailed information including SPAN margin and Exposure margin and the total margin required to take a position.
You can visit Zerodha margin calculator for Intraday, Futures and Options, Currency and commodity segments.
Please use below button to visit Zerodha Margin calculator
Zerodha Margin – FAQs
Q: Is there any charges levied to use Margin from Zerodha?
A: No. there is no separate charges for using the Zerodha margin.
Q: Do I need to keep minimum balance to use Zerodha Margin?
A: No, one can utilise the entire amount present in the trading account for margin trading
Q: Does the margin value change daily?
A: Yes, margin amount changes on daily basis
Q: Can Zerodha utilize the amount blocked as margin in my trading account for their own business?
A: No, the margin is blocked y stock exchange and hence a broker can not use those funds
Q: Is it possible to withdraw the funds blocked as margin?
A: No, once the funds got blocked, it can be withdrawn only when the trade is settled.