Zerodha Margin Calculator (July 2020)

Many of us have been using Zerodha for trading stocks, commodities etc using Zerodha. Zerodha charges lowest brokerage and provides a robust platform for trading.

But to leverage that, we often need to know what margins we have got from Zerodha. This post will help you understand

1. What is Zerodha Margin and how is it helpful
2. How can you use Zerodha Margin Calculator to boost your trade
3. Different Types of Zerodha margin Calculators
4. How to find the exact Margin for any type of trading
   

The Zerodha Margin Calculator is an innovative tool designed to calculate the margin available for different scripts offered by Zerodha. It also calculates the number of shares that can be additionally bought through the leverage provided. The Margin Calculator Zerodha helps to calculate margin for various trading segments like Intraday, Delivery, F&O, Currency and Commodity.

Open Paperless Zerodha Account

When you login to your Zerodha account, you will land to your dashboard and see your current margins available like below

This snapshot was taken on Saturday during holiday. Along with your own amount, there are margins provided across various Zerodha Products or Segments that will help you while you trade to multiply your profits. Not only Zerodha, but other brokers also provide such leverage. This provides you leverage to trade but you should also note that this additional leverage can cause losses too, if the script value goes down, totally depending upon you trade.

What is GST? How much GST is charged on the products you buy?

Also Read: How to calculate Brokerage in Zerodha

What is Zerodha Margin

Margin is the  amount of additional money borrowed from a brokerage firm to buy additional shares. It can be considered as a short term loan from the broker (not sure if broker keeps your securities as guarantee!).

In simple words, it is the act of lending money to the client to buy securities. Hence, they are able to buy more stocks than they can actually afford. If the strategy is applied correctly, It can yield huge profits.

Hence, they are able to buy more stocks than they can actually afford. If the strategy is applied correctly, It can yield huge profits. But if it fails, the client loses his own money and he/she is indebted to the broker as well. It’s better to enter this kind of trading with adequate knowledge and a plan. This is the reason Zerodha Margin Calculator provides you different multipliers for different scripts.

Start Your Own Business: Apply For GST Registration Today

There are also certain restrictions placed by the Securities and Exchange Board of India on marginable stocks. The brokers are not permitted to purchase penny stocks and Initial Public Offerings as the risk involved with these stocks is high.

Hence, as an advice, you should know your leverage for trading before initiating your buying/selling trades using Zerodha Margin Calculator.

How much late fees penalty you will have to pay in case of late GST return filing?

Types Of Zerodha Margin Calculator

Depending upon the stocks you are trading in, the Zerodha margin calculator equality provides you with different margins.

Zerodha Margin Calculator MIS

1. In case of MIS trading i.e. Margin Intraday Square Off, the position held by the trader is squared off at the end of the day i.e. before 3:20 pm.
2. If the position is not squared off by the client, Zerodha does so automatically on his/her behalf.
3. Zerodha Margin MIS Calculator will provide you margin ranging from 3-12.5 times.

Zerodha Margin Calculator CO

1. Zerodha provides its users an option to provide cover to their orders, this means, in order to play safe during trading sessions, you can put a stoploss to your trade which helps you cover your trade in case of untimely loss. This is known as Cover Order.
2. We recommend our users to put stoploss ranging 0.5%-2% while you trade.

List of Latest Plans and their Premium

Zerodha Margin Calculator BO

1. Bracket Order means putting a Target along with the Stoploss with the desired Buying price for your trade. This means a Bracket Order has 3 components –
   1. Buying Price
   2. Stop Loss
   3. Target Price
2. This strategy is generally used during Intraday trading where traders target leveraging profit booking in short terms within 1%-5% or as per market conditions.

Open Paperless Zerodha Account

How to use Zerodha Margin Calculator

The Zerodha Margin calculator is very user friendly tool. The user is merely required to search for the desired script. The margin calculator displays the margin provided on that particular script and the additional number of scripts that can be bought.

The user can choose the desired product segment and accordingly search for the desired script while using the Zerodha margin calculator. The calculator helps a trader to keep their accounts stable amidst prevailing market uncertainties depending upon the existing market values and provides an automatic square off system to safeguard against any losses that may arise.

For instance, if you wish to know the margin available for Tata Motors Equity using the Zerodha Margin Calculator, you can go to the equity section in the Zerodha Margin cal. There, in the search tab, type Tata Motors. The zerodha margin calc will display the multiplier and allow you to calculate exact leverage provided for trading.

Zerodha Margin Types

Zerodha Equity Margin

1. CNC Equity Margin
   1. Known as Cash and Carry
   2. Does the delivery based trading of quity.
   3. CNC method does not provide any leverage.
   4. Zerodha does not provide the option of squaring off the position automatically either.
   5. Under CNC, if shares are purchased and sold on the same day, it is considered as intraday trading.
   6. It also does not involve any kind of brokerage charge.
   7. As soon as the stock is bought by the client, it will be delivered to their account and if they are selling a particular stock, it gets debited from their account in case of Equity Delivery.
2. MIS Equity Margin
   1. Also known as Margin Intraday square off
   2. Timings allowed between 9.15 am – 3.20 pm
   3. Timings can change depending upon Market volatality
   4. Almost 500 stocks eligible for Intraday Margin
   5. Eligible for both Buy/ Sell
   6. Calculate Intraday margin for your stock simply by multiplying it by 10 times to assume the minimum value
3. Co Equity Margin
   1. Additional leverage for Cover Orders since they are supported by a Stoploss
   2. Eligible for both Buy/ Sell.
      
      How to Open Zerodha Account Online

Zerodha Equity Futures Margin

1. For trading in equity derivatives segment, the clients must ensure that they have sufficient margin in their account. The brokers are required to collect the total exposure and span margin so that the trading can be carried forward to the next trading session.
2. Along with MIS and CO, you get margins for
   1. NRML (position can be held till expiry provided in the account)
   2. MWPL (Market wise Position Limit)
      

Zerodha Futures & Options Margin

1. The Zerodha F&O Margin calculator is designed to calculate margin for option writing or shorting.
2. The Zerodha Margin Calculator Futures one of the simplest and most efficient tool to calculate margins across various options and futures segments.

Zerodha Commodity Margin

1. Provides Margin for MIS, NRML and CO trades.
2. As an example for finding out margins by using Zerodha Margin Calculator, mentioned below are a few commodities with their respective lot sizes, NRML margin (or Normal Margin) and MIS margin as given by Zerodha

Here NRML stands for normal margin. When the client takes the position as NRML, he/she should have the relevant margin amount in their respective trading accounts. This will permit them to hold the intraday trade futures position or overnight position till the expiry.

Can you search GST Number by Name?

MIS stands for Margin Intraday Square off. When the client enters intraday trading using MIS, they get the benefit of extra leverage which is approximately 50% of NRML margin. The MIS trading bracket opens at 10am and closes 25 minutes prior to the market shutting down.

Zerodha Currency Margin

1. The India Exchange Board does not permit traders to trade in FOREX.
2. Lot Size is 1000 and is shared for coming 3 months
3. However, with the formulation of certain rules and regulations, traders are permitted to trade in certain currencies which offer good returns

What is Span Margin and Exposure Margin

1. Span Margin Zerodha

Span margin is the margin blocked for F&O trading by the broker and calculated basis worst possibility of a one day move for that particular trade.

2. Exposure Margin Zerodha

The exposure margin is a type of emergency edge and is calculated based on the exposure taken. It is collected to prevent a broker’s liability which may arise due to market variations. The Securities and Exchange Board of India has formulated a new set of rules and regulations which mandates the brokers to collect the SPAN margin and Exposure margin from traders.

Hence, users are expected to maintain a good amount in their respective accounts so that they can square off the positions held or avoid any penalties. Span Margin calculations are carried out based on the risk and volatility of basic assets. All these information is clearly mentioned along Zerodha Margin Calculator section on their site.

The main objective of developing SPAN was to identify the largest possibility of loss that any portfolio is likely to suffer. The exposure margin as suggested by Zerodha Margin Calculator is a type of emergency edge and is calculated based on the exposure taken. Span margin does not remain constant.

It continues to change for specific security based on market volatility. Usually, the exposure margin remains constant and it is basically collected for additional security. The brokers are asked to collect SPAN + Exposure margins from their clients to maintain a level of safety over and above what SPAN requires.

Everyone in the market needs to keep the boundary amount in their account called an initial margin calculated using software – Standard Portfolio Analysis of Risk (SPAN). It is also known as the edge of the span. Along with this, an additional edge is collected to protect brokers against any kind of MTM (mark to market) losses that may arise due to frequent market variations. This extra edge is collected by the brokers near the revelation. In the Indian stock market, exposure margin is always charged above the SPAN margin.

Total Range = SPAN edge + Exposure edge

Zerodha Brokerage Charges:

While now you know how to use the Zerodha margin calculator, let me also share basic brokerage charges Zerodha applies.

The Zerodha Brokerage calculator takes into account Stamp Duty by respective states, Securities and Transaction Tax (STT), Goods and Services Tax (GST), Exchange transaction charges, SEBI Turnover fees, etc.

For equity trades, Zerodha charges lowest value of –

1. INR 20 or
2. 0.03% of total Turnover of trade.

The Zerodha Brokerage Calculator, therefore also helps to calculate the actual profit earned on any transaction after taking into account all the relevant charges.

Steps to view P&L in Zerodha Console

1. Login to your Zerodha account using your password and PIN
2. Click on Reports on top right
3. Select From Date and To Date for which you want to view the Profit or Loss of your trades in detail
4. You will arrive at a dashboard view like below

5. Click on Charges and view all charges along with brokerage levied by Zerodha.

Zerodha Margin Calculator Final Tips

1. BO and CO orders provide more leverage as compared to others.
2. The square off time for automatically closing the position is 3:20 pm on any trading day, but can happen in additional 4 minutes basis market volatility.
3. Whichever trade you’re performing or dealing in, you should always consider using a margin calculator.
4. The traders should have sufficient balance in their trading accounts to take any market position.
5. If you do not have the sufficient amount in your account, zerodha automatically squares off your position to save you from any further loss.
6. Policies can change subject to market fluctuations or variations.
   
   Open Paperless Zerodha Account

People also Read:

• How to register your own GST Number?
• Latest SBI FD Rates
• What is Coverage in Car Insurance Policy?
• Car Insurance Benefits and Discounts
• List of Top Term Plans in India

Zerodha Margin Calculator FAQs