Thanks for the quick ptu Nithin. Please note that at all times you would continue to remain the owner of the securities that you have transferred and hence would be eligible for all corporate benefits, whatsoever. You mean margin for writing options right? I want to do intraday trading. Cheers 1 I buy 10 shares at Rs Microsoft's fiscal 3Q revenue falls short of expectations.

You can trade equity either intraday or delivery on NSE, BSE and MCX-SX. When you take a trade in equity and square the position off before the end of day, it is called as intraday equity trading. You can trade intraday at Zerodha with leverage by using these 2 product types while taking a trade. When you use this product type, you commit on keeping the trade intraday and hence we give you a leverage between 3 to 10 times based on the risk and volatility of the stock.

Our margin calculator tool has a list of all stocks and the MIS leverage you get. Cover orders is a unique feature at Zerodha where you can trade intraday using market orders but with a definite and compulsory stop loss. Since the risk with such a position is low, the margin required is less and hence the leverage higher. When you trade intraday using cover orders, the leverage you get vary from 6 to 20 times twice as much as MIS. But again all open positions get squared off around 3.

Read this to know more on cover orders. When you buy stock and hold it overnight, it is called a delivery trade. At Zerodha, you need to use product type as CNC while placing a trade to take delivery of equity stock. The product type CNC will show up on your order window only if you have a demat account mapped to your trading account since you would require a demat to take delivery of the equity that you purchase.

At Zerodha we provide no leverage when you are executing delivery trades which mean that you if you want to buy Rs 1lk of stock as Put option writer profit 360, you will need this Rs 1lk in your trading account and similarly if you want to sell Rs put option writer profit 360 of shares with product type as CNC, you will need these shares in your demat account mapped to your trading account.

Futures as such are inherently leveraged which means that to buy X amount of futures you need only a small portion of it called as margin in your account. This margin to buy futures is stipulated by the various exchanges. MIS is used by intraday traders as all open positions get squared off before the end of day. But since no position is carried forward overnight the margin required is also lesser than the exchange stipulated margins.

Using cover orders, you can trade futures with lesser margins than NRML and MIS. Presently Cover order facility is available for equity, commodity and currency futures. When you buy options, either equity or currency there is no additional leverage we provide except in case of market orders where orders may get traded in value excess of funds available in the account. So if you are buying calls or puts of any contract, the premium required to buy them has to be present in your trading account.

You can trade options either with product type as NRML or MIS, but since there is no additional leverage provided if you use product type as MIS, it is advisable not to use MIS while buying options since all MIS positions would get squared off before the close of markets. When you short an option, the margin required depends on various aspects like underlying, expiry, volatility and more. We are the first brokers in India to have an online SPAN calculator tool which lets you calculate the margin requirement for shorting an option by mocking the position in the tool.

You can short option either using the product type as NRML or MIS. Love playing poker, basketball, and guitar. We have a HTML5 version Z5 that will work on your windows mobile as well. Check this link Suppose your are holding rs 2 lakh worth stocks in ur demat account and have 1 lakh cash, wat wud be the initial margin for intraday trading in Nse Futures or options? Pledge as in you have to transfer the stocks to any other demat account or will the stocks stay in your demat as the margin is only for intraday?

Also are there any charges for pledging the stocks? And is it really necessary to send an email for the same? One round trip of pledge and unpledge costs around Rs 55 per scrip irrespective of the quantity. On Q, we are giving an option to place a pledge request. It will still take around 24 hours to get the benefit. Unlike brokers like IIFL who keep the stocks with them when they pledge, we pledge it directly with NSCCL NSE.

Thanks for such a prompt reply. Initially I was amazed when I saw 0. Prateek, we charge 0. But yes the pledging bit is something that will be simplified in the next few months. Can you tell me why you are giving margin for future and option only, not for intraday equity scripts. Can you please confirm —. I want to create a pledge and keep writing covered calls for a considerable duration. If yes, how much? Asking separately because futures have EoD MTM. So, I believe some cash component will be required so as to avoid small transactions for any shortfall in margin.

I am asking from Zerodha margin policy point of view and not risk-cover point of view. I hope it does. If one underlying falls in value reducing over all margin without increasing risk level will there be an auto square off? The other underlying may be up and that call might be showing a loss. Do I have any control on which position gets squared off? IMO, nothing needs to be squared off since there is no margin risk on any position. They are COVERED calls and any RMS should recognise that fact.

If not, is there any way I can mark some position as a covered call position and pledge equivalent number of shares? Currently we are not, very soon we will as we intend to provide margins without even pledging stocks lying in demat. How much is still not decided. But for now, there is no charge. It will be charged based on how much margin used. Yes, you are the owner of the stock, you will get benefit of all corporate action.

ALL MTM losses has to be paid in cash to the exchange. No, it is all treated as call option writing. No margin benefit you get because you are writing calls on the same stock. You will not have control on what gets squared off first. So it is best to have some additional cash for all MTM losses. Sir, Would it be Pledge or Pool transfer.? Also, if this is possible, can such an order be a Limit order or will it only be put option writer profit 360 market order? Vikesh, it will be a pledge. If you want to sell, you will have to first unpledge and only then sell.

I have stock in south indian bank at ambalalshares and pledged them with axis bank and created a overdraft account for the stock, can i do this also in zerodha. Hope you will provide the option to the customer of —. What is the right way of doing this? PD, This process of manually having to pledge is something we will be stopping soon. Will keep you posted on what route we take.

I am a new trader in zerodha. Can you please tell me what is the exact square off time for intraday trade i. In your site time has mentioned as but today my trade has square off at And for 5 mints i had lost Rs. Best not to use BO and MIS till the end. Dear sir, there is only 3 times trading limit for intraday. Compare to others too less. It is upto 20 times based on the stock. My question is put option writer profit 360 will get chance to exit and get some funds or is there anything like u will squareoff to provide for the margin Varun, if you have any urgent query call our support numbers.

If the margin in your account drops below the minimum SPAN margin, it gets squared off usually between 3. How much is upto you. Is trading on margin allowed in this case on Zerodha or I can buy only my account balance without leverage. Best regards In case of delivery, leverage option is not there on Zerodha. But ICICI deducts every day some amount from your account till you exit the stock. And also brokerage charges are very high on ICICI, applicable both at buy and sell time.

Aditya, yes we support. Has everything you need to know. With us, you will need the complete money for keeping overnight equity positions. Girish, if you are checking this position on a weekend, we run testing sometimes and it is possible that it will show 0 at those times. You can short, but only for intraday. To be able to short intraday without stock in your account, you need to use the product type as MIS while placing your order.

The list of stocks that can be shorted for intraday is available on this link. Sir, I bought 1 lot natural gas with expiry date feb at Then the price suddenly fall around within 2 days. Then it was automatically sold by you. What is the reason? Even though validity upto feb and enough cash in account, why it was sold. Do reply to the email if you need someone to get further clarity.

Hi ,If we are trading in BTST ,what would be margin for that whether it is similar to the intraday margin or exposure. And why no margin for delivery trades? ICICIDirect provides margins for 5 days in equities cash segment. Thank you very much for the information. I am not getting how much margin i need to pay for One lot of Sensex?? Kindly tel me how much margin to be maintained to be kept for overnight position???

BSE scripts how much leverage for intraday?? Hi, Presently we are not receiving the SPAN files for BSE and hence not able to share the details. SPAN Calculator is available on this linkif you want to initiate it on ZT read this blog and if you want to know how to use it on the browser, read this. But when i put a spread order for the same it gets rejected saying that the margin required is aroundeven though i have bal of The issue here is that to get this margin benefit you have to enter the position separately and not through spread or basket orders.

So if you short hindalco futures you will need 35k for this and then buy the calls, the margin drops down tobut to first short hindalco futures you will need that 35k. So if you buy nifty futures and sell nifty calls, you need both to be executed immediately or get cancelled, otherwise there is a risk that you position is naked.

Use spread orders for that. Cheers 1 I buy 10 shares at Rs If the stock goes down I want to place a SL at Rs 8 and at the same time if the stock goes up I want to sell it at Rs Can I place both the orders at the same time? I am not clear how sure on the increase in value 1. Yes you can place both the orders at same time, but make sure that you cancel the other when one gets executed.

So if stock goes to 12 and you sell the stock for profit, make sure you cancel the stop loss that you had placed at 8 otherwise if the stock comes down to 8 it will get sold again. In currency price is given till 4 decimal points. So if USDINR is at For 1 lot every 0. For brokerage charges and others you can look at the calcuator. With regards to placing the orders. The present rate of March contract is Rs. What is the Margin Money required for this transaction and how to calculate margin.

The margin put option writer profit 360 you see on SPAN calculator, is what NSE asks for, it reduces a bit when you are hedged, but not by much. Remember on SPAN calculator, after adding both the positions using net quantity, you click on both of them when you click on get SPAN. Presently for this position the margin requirement I see is : for shorting puts, Rsfor shorting puts and going long puts: Rs The reason exchange has to do this is because once you have both positions and if put option writer profit 360 exit the long puts, there still has to be sufficient margin to hold the short puts, otherwise it is considered a risk.

Do you know of any timelines in this regard? When there is a question of risk getting reduced, they are for good or bad tough to change their policies. Will exchange going to implement such policies like iron condor, vertical spread? Really looking for this as combined order on single click will ensure less margin and hence less risk. A sort of multileg or combination order.

I am not sure if brokers have this kind of freedom. I do appreciate the kind of system change this would entail even if it was given. Yes we do, but unlike icici which gives you an interface, you will have to send us an email asking us to pledge stocks. We will give you margins for the same from the next trading day. We will put up a blog on this by the weekend, do keep following us on this.

Example Am Having Rs in Trading account whether possible to buy 1 Lot nifty in NSEFO segment app Margin of and Commodity segment Goldmini 2lots of margin Rs The example you have given would not be possible, if you have 50k in your equity ledger you cannot use it to buy goldmini. By using the product type as MIS while placing your orders, you will get a leverage of 2 times and this will be allowed till 25 minutes before closing of the market.

You can use position conversion to convert MIS to NRML, once done you will be allowed to hold positions overnight, but you will require complete margins for that. Please note that the put that I am buying is fully covered because of the Put that I would be holding. If so, How do I do that? Presently Nifty puts are 96 and puts at To short put margin required is around 18k, but the combined margin required to short put and buying puts is only around 13k.

You can place orders for both, but the margin benefit you will get only after the position is executed. So if you place an order to short the puts, you will need 18k, but as soon as you buy puts, it will drop immediately. So yes place a limit order to buy puts at 90 and sell at 15, but you will need separate margins for this, once both are executed your margin requirement drops. Taking example of prices that you have listed, to buy 1 lot of put I need rs.

If I am selling put at 15 rs I am getting rs back. As long as I have put, why is there a margin requirement for put. The issue for the exchange is once you have taken the position, what if you first square of the long puts? You will be left with short puts with unlimited risk and only 5k margin…?? Why cant zerodha put a simple rule at the time of closing the contract. If I try to close the contract without first closing put then I am allowed to do that only if I have the required margin to write Put.

If I close both of them in one go, then I am fine. For no additional risk of writing a covered put ofwhy would you want a margin of close to 13K when 4K is sufficient. I mean I should be able to do three times with 13K in my account. Chandra, this is not a rule we can put, these are rules set by the exchange. If we collect margin from you which is lesser than what is prescribed by the exchange, there is short margin penalty levied by the exchange.

As a trader, I understand what you are asking for, but unfortunately not possible today on the Indian exchanges. The only positions that get a margin benefit is the calendar spreads, that is because the calendar spreads are quoted on the exchange. Friday was expiry of Global contracts and hence there was a delay in the file processing. Please check your account now and you would see the credit, if any. When you bought nifty atwas blocked, if you are selling the same nifty atyou are exiting and for this no margin is required.

It is like you are selling what you have bought. We have designed a tool on ZT through which you can calculate the exact margin benefit even before taking a trade, Click here to see the SPAN calculator. Actually in terms of margin I usually face a problem, for many a times I do not regularly track my margin requirements and which in turn squares off my position, even though I wanted to continue in that scrip.

I have a suggestion, if zerodha even if at some cost, starts to provide us alerts before sometime for our margin requirements so that our position is maintained Tushar, sorry for missing your post. Presently there is no such facility for us to message you, but will bounce the idea of our risk management team and see if anything can be done. You have been evading answering this for a while. I hope you would own the responsibility of assuring your clients that.

Please realize that not answering is not an option. Can you confirm the following that :. Your trading platform takes care of stipulated margin requirements when a trader places order in FNO for taking overnight positions? Trader need not worry when your trading platform shows enough acredit balance at the end of trading hours pm while the margin statement generated in the evening around 7pm shows a much lower credit balance or even a small debit balance and next day morning trading platform again shows enough credit balance?

As long as you are taking a position with order type as NRML, stipulated margin requirement will be blocked while placing an order. Your definition of enough is not clear. But as long as you are having exchange stipulated margin it should be enough and nothing to worry about. That said, the important thing to note is that margin requirements are updated by the exchanges 5 times during the day.

There is a possibility that on an extreme day, the movement in the stock could be so drastic that margin requirement might go up suddenly. When you write deep in the money options, this rule might again not apply. Same query was posted about 3 weeks back along with a query on algoZ where I also mentioned that Zerodha seems to be ignoring the basics.

While answering that query you assured to get back on the margin query but never came back. I always want to play by the rules. That is the reason I also want that rules are being enforced in spirit and the mechanism to enforce them is not faulty. Helpdesk at one time has said that I can rely only on margin statement. Now that is not just impractical but unfair tooas positions have already been taken relying on your trading platform.

And, this keeps happening for many days for without any change in the underlying positions. Snapshots of discrepancies have been sent to compliance dept multiple times. It would be worth checking your systems for bringing them in sync. My bad, if I missed your previous query, but can you email me your client ID to nithin zerodha. Now that I have heard your query out, I can see another reason why the margin statement may differ sometimes. So for eg, if you 5lks in your account and bought 4lks of options.

Tomorrow you sell the 4lks of options for 4lks. In tomorrows margin statement we cannot show this 4lks credit because it is not realized. If we have to sync the margin statement with the trading terminal position on this, we will then not be able to allow trade on options carried forward and which is sold. I have a doubt, if i sell 10k worth options in morning and can i buy options in the afternoon same worth of 10k.

Your margin policy ref: back office is still dated 6 Decdespite said to be revised effective 21 May Hello sir, i want to ask that how many margin zerodha gives for intraday tradingsuppose i having 10,???? Blue chips for intraday will typically be upto 10 timesbut if you use cover orders you can get upto 20 times. Hello sir, I want information about intraday margin for equity future.

For example if I want to buy Nifty JULY put option writer profit 360 at for intraday MIS exactly how much margin is require. If Nifty margin is for positional, for intraday wheather it is or Please clarify this as early as possible. For intraday you can trade using MIS as product type or else you can also use cover orders. In cover orders you have to buy market price and compulsorily put a Stop loss.

VMGJul 10pm. Thanks sir to solve my query about difference between MIS order and COVERED order and associated margin. Now I want to confirm only about covered order. Covered order means just an automated order executed as per market rate and stop loss order is also automated calculated. I want to know wheather CO is place manually, mean LIMIT order for buying IF Nifty is at and I want to buy at Can I place CO order as LIMIT order? I have a question that how to short a stock, means SHORT XYZ JUL FUT TGT 98, Margin depends on the future that you are trading, you can see the margin for various contracts as explained in the blog above.

Sir as i am a student so i want to trade with little money. Can i trade with Rs after i learn properly i will add more money to account.????? If i use margin in my case let my investment is and i got leverage of 10times then i can total trade for Rs then what interest i have to pay for using margin??????? If you are trading on equity depending on what stock you are trading you get 3 to 10 times.

So yes for eg you can buy 50, worth of reliance with only in your account. But this leverage is allowed only for intraday trades and you have to square off by 3. Sir i checked out the margin policies Excel and found that in cover order the stop loss must be 1. But take this example. If i buy opto circuit at 30 and according to this stop loss should be Now i can buy approx shares. All i want to ask is if i use only margin which gives 8times for opto circuit then my total money will be and i can buy shares approx.

It is much better to earn a little than losing a lot. Ya i know if price fell i will suffer huge loss but as opto circuit is a high volume stock increase in only 25paise is somewhat possible. Yes you can use MIS as product type and you get an option to choose to have a SL or not have a SL. You can choose to place limit order as exit order as well.

Cover orders is for people who need that extra leverage, more than the 8 times that you will get from MIS, for these people only we ask to put SL if using cover order. Sir i want to know does Zerodha have instant order execution. Lets say i have shares of IVRCL INFRA which i bought at Lets say after 1 hour the price is hovering around If all shares get executed when price touch Reply please i am curious and waiting The order at So if you were the first person putting the order at So execution of your order will depend on how many people buy at When you write an OTM option, when market goes against you the put option writer profit 360 requirement will keep going up daily.

You will have to track the margin requirement for the option you hold and ensure that you have enough funds to hold this. You can use the SPAN calculator to know what is the exact margin requirement at every point of time. Click here to read about SPAN calculator. You mean margin for writing options right? We have a tool for this called SPAN calculatorread the blog.

Usually writing for options is around future margin if you put option writer profit 360 writing in the money options and it keeps reducing as and when it goes out of the money. See the blog on Span calculator if you want to see the exact amount. As mentioned put option writer profit 360 point 5 in the above blog. Vicky Aug 6pm. I need file containing details about the span and complete exposure margin, amount of every commodity trading in commodity exchange.

This will be updated everyday. You can also use the SPAN calculator for this. Send us a letter with your client id and asking to close your account with signature. We would do it. VMG Sep 14pm. Zerodha replyThanks 1 Sep 14pm. Cheers, As per previous response from your side regarding trading account closing please provide address where. Is there any account closing form or only letter with signature is enough?

Any document is required to attach with letter? Just a letter is good enough. Does margin required for future trading depends upon put option writer profit 360 i buy or sell future? Ifnot,from where I can find that one? In margin policy, it has been stated that. Once bought as NRML, you can hold the contract till the end of expiry as long as you meet the MTM obligations on a daily basis.

I have sold 1 lot of Mcleord Russel. Now If i check my open position at end of day, it has got 2 columns which is confusing me — clos. Total MTM value in this report is coming out to be i do have other SELLS future also. SO I should infer from this big amount? Can I use my demat holding of 1 stocks 2 Equity mutual funds 3 Debt mutual fundsfor margin of option position. Are there any extra charges for it. I am already in communication with aforementioned email id. Can I buy mutual funds through my Zerodha account OR can I transfer mutual funds from other demat account to zerodha account I know shares can be transferred.

Do zerodha maintain any document where user can get the haircut percentage for the stockmutual fund he wants to pledge. You can click here. Also by default, the intraday chart shows 22 days data. How to make it to show just the current day intraday chart by default? I tried using the template but it doesnt seem to work. By default it will show 22 days and this has been made because of request of a lot of traders.

To look at 1 day chart, you will have to zoom into or select by left clicking and dragging on the portion u want to see on the chart. Thanks for the quick reply. Is there any way to make 1 day chart as default, as I will close and open the charts many times during a trade according to my convenience? Does the span margin calculator in Nestworks for currency options.

The margin for trading currency went up quite significantly, we had sent an email to all our clients informing that. Here is the link of the email. These positions might not have been taken on same day…. Yes you can convert from NRML to MIS and if you want back from MIS to NRML. Check this blog on position conversion I wish to place a vertical credit spread on nifty options. But am confused regarding the margin requirements. I wish to sell option writing 4 lots of nifty ce November expiry and buy 4 lots of nifty ce November expiry to hedge it.

If yes how would I go about placing the orders sell 1 lot then buy 1 lot and repeat 4 times? When you sell calls and buy calls, the risk is reduced and hence the margin required to take this position also reduces, but not to the extent u r expecting. If you want to naked short calls Nov margin required is and to buy another So why does the exchange require a larger margin?

What if you exit one and not the other once taking a position with lesser margin? Unfortunately other than calendar spreads you cannot trade any other spread directly. I am already a client for only trading in FNO. I am interested to do Intraday trading in NSE equity but its not showing in segment. I want to trade using Zerodha trader in NSE equity no deliveries in this case how to get userid for same and what will be margin?

So you have 2 options for this: 1. If you have any existing demat account, send us a copy of your demat client master report the statement which carries your Demat account number and your name requesting to map to your trading account. Once this is done, you will automatically start seeing the NSE equity segment and you can start doing intraday trading in equity. But note that if you link some other demat of yours, you will be able to buy stock for delivery, but you will not be able to sell that through us, you will have to sell that with the broker with whom u have opened the other demat account.

If you want to trade delivery based as well, open a new demat account with us. You can call the sales executive who helped u with the trading account or call on for this. In futures we actually get Margin and we do not square off positions intraday. Can you tell me what is the interest rate that amount you give us on margin attracts. Ashu, Futures are inherently leveraged and there put option writer profit 360 no interest that you have to pay to hold that position.

Risk of running brokerage business, whichever part of the world. Firstly I hope you are using our SPAN tool for calculating option writing margin, here is a blog on how to use it. When you put option writer profit 360 options since the risk is unlimited a margin is blocked and similar to futures this is marked to market and hence need keep your margin requirement updated daily.

So if the position starts going against you, you would have put option writer profit 360 ensure that the minimum required margins are present. These margin requirements are as stipulated by the exchanges, and not really in our control. Also, I get your point of SL and etc, but as you know when blocking margins exchanges have to think about the worst case scenario, is the margin enough if there is a drastic movement in the underlying, which probably happens once or twice every few years.

It is important to not compromise on this risk as both exchange and us as brokers. Yeah, you are right Nithin, I was not considering gap openings and as a broker one must have safe margins. Still have one more question, on a day like general election results when markets hits double circuits, how do you ensure margins? I have pledged shares worth 6. Though I understand the logic of asking for a balance I still dont understand why you cant let me trade.

If there is an MTM at EOD and I do not pay in you have enough stock with you to close the position the next morning. One of the reasons for asking for this cash margin, is because selling a pledged stock is the last resort we want to take. Can you email your client ID to siva zerodha. Sir I am a client of Zerodha and want my ledger balance for a particular fy like or for any specific period than how can I get that Login to bo.

Sir I have a Demat account with another broker and having only trading account with Zerodha and I am having soft copy of the said demat account detail, Further how can I link that account with my trading account at Zerodha with that soft copy details. Take a print, sign, and send the demat account details to our office in Bangalore asking to map it to your trading account. This will be mapped to your trading account, but do note that when you buy stocks at Zerodha it will go to your demat, but while selling you will have to sell with the same broker whose demat you map.

Thanks for the reply but can I trade with demat of other broker in Zerodha on intraday in equity trade Yes you can trade intraday equity. Also you can trade futures and options for both intraday and overnight. Have Pledged shares wortth Rs 6. Cash balance of about 50 K. Kept an overnight position which requires a margin of Rs 60 K. This has now been debited to my running account and the balance has gone into negative. Shouldnt only the margin be debited to my collateral account and any MTM profit or loss should be transferred to my daily running account.

You can trade 2 lots of Crude Intraday with Rs. Deepak, leverage for delivery based trades is not something which is in our priority list right now. We will think about giving leverage for delivery based trades when we have a DP of our own. My advice to you is to figure out a good system for trading intraday. Or if you feel your position will make money in a couple of days instead of on the same day, you can trade futures which is already a leveraged product that can be held until the expiry date with just a fraction of the amount.

I came to know that one can pledge Mutual Funds ETFs and non ETFs with Zerodha now. If this is true, can you please let me know how this can be done? You can send an email to siva zerodha. We will soon have this put up as a post. Nitin, thanks for the prompt reply. I will get in touch with siva zerodha. I wanted to intiate a strategy in Nifty options. I would be carrying the position till expiry.

So I wanted to know that the margin required would be the one which is shown in span margin calculator after the margin benefit. Will I get Margin benefit or not?? Actually I wanted to send you the screen shot of the span margin calculator which I had calculated for my positions. How do I send it to you? Now instead of trading 3 lacs 3x worth of shares in 1 stock.

I will be trading 1x in each of those 3 shares with the same 1 lac investment. In either case I will be trading an amount worth 3 lacs in total. In that way I could average my risks and stay in assured profit and also generate more brokerage. Let me tell you how it works, assume you buy 1lk of first stock, if it has 3x leverage, around 33k is blocked in your trading account.

You still have 66k left that you can use anyway you want, trading 3x stocks, 5x stocks or whatever. Gold near contract is pretty liquid, and you should be able to trade all of them at one time. But if you have put option writer profit 360 place 20 lots of gold, you will have to place 2 orders of 10 lots each. A couple of questions. How put option writer profit 360 I transfer Mutual Funds to Zerodha account.

Which MFs can be transferred? How do I pledge them after they are transferred? You need to first transfer it to your demat account opened with us, once it is in the demat send an email request asking to pledge the MF. Email request is good enough. I want to do intraday trading. You can place a limit buy and limit sell at a same time, but you would require 2 times margin. But if you enter using market, and put a limit to exit, then you need only one time margin.

It will be easy for you to understand. Can you send your client ID to nithin zerodha. We might in the future, but no plans as of now. Today it closes of Rs. That means i have to pay rupees from account to maintain the margin before next trading. I have to pay again or will be added to my account compare to previous close. Margin would be detected from the date which i write the option or the previous close of the day. When you make a loss, margin required increases, and when you make a profit margin required reduces.

So if price is and then today closes atthe margin required will reduce. That means again i should have to pay rupees for the closing of again on the next day. No Nithy, if the price was Rs the previous day and today it closes at Rsyou are in a profit of Rsso you would not have to pay, Rs will be credited to you. Is the same process for Future selling also? But i read the article.

If i sold for Rs. I have to pay 20 rupees from my pocket. I have to pay only 5 rupees from my pocket compare to previous close Futures have what is called as daily marked to market. So assuming you sold at Rs and today it closes at 80, R 20 is paid to you as profit. Next day if it closes at Rs 75 you get paid Rs 5 because you again make a profit since you are short, you make money when market goes down.

If assuming the next day it goes to Rs 85 since you are short, u lose when market goes upyou have to now pay Rs This process is called Marked to market. If I Buy any shares with NRML type, and not sold on same day, then. Firstly, if you put option writer profit 360 to buy stocks for delivery, u need use the product type as CNC and not NRML.

The money has to be first transferred to your trading account from savings, before you can purchase. When you sell next day, money will come to your trading account in 2 days after you selling if you want to withdraw, but if you want to buy something else, you can do the same day. Brokerage at Zerodha is Rs 20 flat per executed order or 0. Thanks for the quick reply, Currently I am holding an account with diffrent campony demat account, I wasnted to verify the charges they are doing, so that I can close the account immdeialty if ther is any thing wrong.

On thursday 10th april I had bought shares of compony per share is Rs with NRML typeon same put option writer profit 360 I could not square off all the shares that I bought in last minute I had kept sell order with market price, in which shares transaction is not completedWhen I check my linked saving account next day 11 th april they have deducted around Today since it is holiday for Bank and tradinng I could not connect to their customer service to know about the deduction.

My question was. I know it is long storyhowever I wanted to Confirm what they are doing is correct if not I need to close account immdiately to save my hard earning money. Looks like the brokerage you are trading with is either a bank or else has POA on your bank account also as money is directly debited from your bank account. It will not be possible to comment on the process followed by the other brokerage, it will be interesting if you can fill us in, once you have the complete details on this in the next few days.

Suppose I have Capital. I purchase 1 lot stock future for 30, and 1 lot Put option of same stock as a hedge for 10, and 10, cash left. Zerodha will trigger selling my future at what price. Firstly if you are buying futures and buying puts, you will get a margin benefit, you can use our SPAN calculator to see that. This has confused me for quite some time, i seem to have understood it now. Can you please confirm if the below mentioned working for a hypothetical scenario is correct?

Margin Requirement for this position — 50k. Amount i received from selling the straddle — 15k. Net cash margin blocked in my account — 35k 50k margin required — 15k i received. Available cash in my account — 5k 40k cash in my account — 35k margin blocked DAY 5: Margin required went down to 40k From 50k 5 days back.

Cash in my account -5k Shortfall of 5k to the required margin. Question: Now my position wont be squared off even if i am not maintaining the required. DAY 9: Margin requirement went up to 75k however total margin available in my account is 55k. Question: Now my position will be automatically squared off because the margin available in. Can you please provide some clarity on this aspect? Sukesh, the rule of squaring off positions would depend completely on market conditions, so it will be tough to put an exact number on this.

However now the requirement has come up to 50k. Is this a temporary phenomenon due to increased volatility because of upcoming elections OR is it due to the fact that Nifty is trading at very high levels now? Secondly, with the expected increase in volatility, the margin requirements have also gone up, and probably will go higher closer to election results.

Will the margin requirements go down once the perceived volatility stabilizes? Also will the price level of the underlying play a role in the margin requirement? Because i feel whenever Nifty is on high levels the margin required too are at high levels. If this is the case it would be difficult for traders like me to arrange the margin amounts if the Nifty goes higher — Any suggestions to overcome this hurdle? Nifty atcontract value 3. My assumption was that whenever the price of underlying goes up so does the margin required to trade in that underlying however as the margin required goes up.

My rationale was that the average put option writer profit 360 required i. Now just to place a order I need to have money upfront!! Is something can be done for this? Please try to implement some margins against overall DP holdings for delivery trades, I have many blue chips shares in my DP but not able to take any advantage of put option writer profit 360 same.

Prashant, all you have to do is send an email to india zerodha. I have another account with IIFL they allow such type of margin trading and with this we easily built up our portfolio easily than with Zerodha. I wish and request Zerodha to provide such facility I appreciate the care and precautions you are following. I have one query though on how are planning to address this.

We observe that when there is a panic in market and particularly when we see lower circuit or upper circuit, most of the brokers disconnect their terminals due to their own mistakes on margins. I saw only one of my previous broker terminal on. Can you assure that such thing wont happen here. Otherwise we can take positions accordingly in other accounts. I hope you will understand the seriousness of my worry and not misunderstand me otherwise.

Put option writer profit 360 pardon me in that case. I was told about conservative approach by your team when I approached Zerodha. This made me feel secure. Sukesh, when an option position goes against you the premium goes up which gets credited to you, but in essence this is a loss. So the margin blocked has to go up atleast by how much you have lost the premium, but the deeper the loss gets the bigger your position becomes and hence the margin required to hold this position goes up more than how much the loss you are incurring on the option position.

It will give more opportunity to investors to trade and make good return. Other option is you may reduce this limit on request basis from the client. I agree put option writer profit 360 High leverage result in High Profit as well as High loss. Buy Disciplined Investor can efficiently use this leverage. Thanks for your confirmation, that gives me confidence that my understanding is in the right direction. Is it real time or at the End of the day?

Like when is it determined that i am falling short of required SPAN margin so that my positions are squared off automatically? It is real time, and unless the market is very volatile most square offs would happen between 3 to 3. You can see the SPAN margin requirement on the trading platform itself after taking the position, and if you want to know the requirement before taking a position you can use our SPAN calculator. That leads to my next question again I know i have lots of questions and might be bugging u.

Will all my open positions be squared off at the same time? I had sufficient margin when i opened these positions however as time passed it went against me and the margin requirement started to increase and the funds in my account were eventually not enough to even fulfill the SPAN requirement. Now once the margin maintained drops below the SPAN requirement, which of my positions will be squared off first? A, B or C or All my open put option writer profit 360 Sukesh, if we had to pick one among 3 open positions to square off, the RMS team would typically pick up the position which is making the highest loss.

The main reason for my confusion is because i am thinking which of my positions would be squared off if each of my positions are supporting other positions? Since each position is supporting the other 2 positions in some way how will a decision be taken on which position should be squared off if i am not meeting SPAN requirements?

Sukesh, if you are holding positions that hedge each other, the SPAN margin would come down, check our SPAN calculator for the same. But yes, it is best that you are always on top of your account and square off positions that you want to, before our RMS team does it. Have a query regarding spread benefit. I have bought say sep nifty futures and after couple of weeks would like to hedge part of my position.

So I would like to sell oct nifty futures. I know I need to provide the necessary margin required for the sell order. After my sell order put option writer profit 360 executed, would I get spread benefit as I am hedging part of my position even though mine is not a spread order? Volatility expected in the markets with the results day after tomorrow, we have to be safe as a risk management team I initiated a call spread on the 9th of May I bought a May call at Rsand I sold a May call at The daily MTMs are given below: 12 May — call closing price — Please explain why this has happened.

When you short an option, only margins get blocked. Assume you buy a Nifty call option at Rs. The credit is realised only if you sell and close the long option position. Similarly if you short an option and are in profits, such notional profits will no mark to market. Only realised profits reflect on your ledger for options. Mark to Market happens only for Future positions. What about losses on short options? Are they deducted from from our account? Because if I have executed a spread order, the loss on the short contract will be compensated for by the profit on the other contract.

I furnished the details below. I request your good-self to clarify the same pls. Based on that I will workout a strategy for real time trading. Chosen Scripts for Trading: CNX NIFTY FUTURE. Capital Investment : Rs. Risk Management Upto: Rs. How to work it out? Is it based on the Risk Management value or Capital Investment value.

How much do I need to pay? What I suppose to. If so then how to manage it? Will Automatic Square off works, during this time or not? Yes we will start mutual funds very soon. Zerodha gives margin to its clients for the securities held in their demat account. The way it works is, the shares would move from your beneficiary account to our Zerodha beneficiary account through an Off-Market transfer which you have to initiate and in turn these stocks would be moved to the margin account.

We would then provide you margins against these shares after considering NSE VaR margins and your limit would be enhanced on your trading platform. Whenever you wish to not receive these margins, you can just send us an email request to withdraw the securities held in our beneficiary account and we would in turn move them to your beneficiary account. Please note that at all times you would continue to remain the owner of the securities that you have transferred and hence would be eligible for all corporate benefits, whatsoever.

Such corporate benefits would be passed on to you. Every broker does this as a value-added service and not necessarily as a money making process. We understand that not all clients can bring in cash to trade and since securities are assets, we could give margin against such assets for the client to trade. For example, if you have stocks worth Rs. The Cash-Collateral proportion in your account for the position held by you will always put option writer profit 360 calculated in the ratio of Accordingly, to utilize the entire 85, collateral benefit you will need to have a minimum cash margin of Rs.

In this way whole process will become seamless as stocks. So that means if price goes below Auto square offs happen at 3. So with 1lk you can trade 3 lots. So you can trade 8 lots, but everything gets squared off at 3. But will be around 10k, you can trade 10 lots, again square off at 3. Check out our SPAN calculator. No concept called dealers exposure, the above rule is for everyone. Check out our brokerage calculator and charge list.

Nishant if you place a limit order to buy at a price higher than the market price, it will get bought at market price immediately. So in your case if the stock is at It is, but like any industry of skill music, sports, arts etconly a few people end up being successful. I am both Zerodha and ICICI Direct user. ICICI Direct provides a intraday feature called OptionPlus only for Nifty ATM Options. We have similar order types, Check out Bracket orders and Cover orderswe provide higher leverage if you use this.

Nithin sir ,thanks for your answer sir. Sir please tell me if i buy stock in intraday trading and price of the stock falls so much that i cannot sell it without making loss sir and as it has to be square off before pm ,sir can i convert that sell order into CNC and hold it for unlimited time. Yes you can convert MIS to CNC before 3. So if with 10, you have bought foryou can only convert 10, worth of stocks to CNC. Because whatever is sold and if you keep the position overnight has to be delivered to the exchange.

What you can do is use Liquid BEes for this, you can check the product note on liquid bees for this. Thanks for the quick reply Nithin. Problem with Liquid bees as margin is that i put option writer profit 360 end up taking a long position on the market — i would ideally like to avoid such risk. How about a reasonably actively traded debt security like Nhai bonds? If you are trying to sell as CNC, you need to have shares already in your demat account.

If you have it and sell it, you can buy back anytime before 3. Do understand that margin of safety would be lower and position exposed to square off if SPAN margin is disturbed. Assume you shorted 10 shares of Reliance in MIS at and stock price went to making you a Rs loss. Senthil, check this link. Rajas, whatever is bought or sold as MIS gets squared off as an intraday trade. So you will be still holding 1 lot of DLF in your account. You can exit that only tomorrow, but from next time if you have bought as NRML, make sure to sell as NRML itself.

If the difference between the stock price and futures price is different from the theoretical price, then this strategy can be employed. So if Reliance is trading at in cash and future trading atyou can buy shares of Reliance and Short 1 lot of Futures. On the expiry day both cash and future will be trading at same time, at that time the idea is to reverse this trade and earn Rs 20 as profit.

Nithin sir, what is margin in stock futures in NRML and in MIS. Nishant, I guess you are just getting started and suggest you to read something on futures pricing. Nishant, your question is quite broad and I will have to explain you from the basics of pricing on futures. Check thisyou have a link to take a course in intermediate modules called Derivative markets dealer module, read this module up and you will have a better understanding of how futures pricing works.

But what I can tell you is that calendar spreads buying one month futures and selling another month futuresmight seem like an opportunity, but what you need to understand is that if something seems too easy to earn, the opportunity probably never existed. This said, we at Zerodha are starting a new online education initiative to help people get started and learn from the basics.

Dins, SPAN calculator shows you the margin requirement after taking all the positions. So, if one of your positions is giving you a margin benefit, you get this only after taking the positions. The other thing is, if you want to execute using basket, ensure that there is extra margin to take care of individual orders, once all positions are taken, the margin blocked will be as on the SPAN calculator. If i am buying SBIN equities and selling SBIN futures, what is the required margin?

Hi Nithin, Thanks and yes i saw that. Currently i could only access it by coming to this blog and then clicking on the link that is provided in the blog. Nishant when Nifty is at and you buy a call it will be trading at a minimum of Rs if it is early in the month as much as So if you buy it at say and if Nifty closes atthe will be come and you will end up losing points.

Suppose I am buying 1 lot of nifty of October expiry. And say the amount is 30K. Sayan, exchange puts a penalty in case the margin in your account drops below the SPAN margin requirement. Put option writer profit 360 can see SPAN margin requirements by clicking on the PDF link Equity SPAN margin PDF on the right top of the table.

Viki, if any stock is in T2T category like penny stocksyou are not allowed to trade intraday on them as per exchange compliance requirement. So no, you cannot use MIS or CO. In cover order calculator under cds future segment it show Margin required Rs 0 when i choose eg:- EURINR DEC So suppose one has pledged shares worth 1,00, and after haircut the margin amount available is 80, If then one writes an option with margin requirement of 60, Can that position be carried without adding cash margin or Will it be squared off at 3.

For Intraday Equity trading, the Equity calculator page gives only around stocks in that list. Leverage of 3 to 10 times. So the stocks which are not in the list, can I consider as 1x leverage. I mean I will buy put option writer profit 360 which are not in the list as MIS product type, provided I have sufficient margin in my account to cover for the entire cost of shares. These margins 3x, 6x9x etc are zerodha specific margins or it is common between all brokers as if stipulated by NSE.

NSE provides Equity Calculator, with VaR margin etc. If so what is the interval. When is the last time the scrips updated for the margin it is showing currently. For example, if NSE gives margin around 5x fx solutions metatrader australia 8 children in zerodha margin page it shows only 3x Is there a chance for this, I dont know, since NSE margin requirement varies every daywill my order gets executed even if I place 5 times the margin I have in my trading account.

Will zerodha platform by itself will check for margins before placing the put option writer profit 360 to NSE? Or the orders get placed and NSE rejects the order if it fails to meet the NSE margin requirement? In later case 5x may get executed. Zerodha Specific, every brokerage will have a different policy based on their risk tolerance. This has nothing to do with NSE VAR, we have our own internal formula to calculate it.

Changes only at the end of the day, usually a change only if there is tremendous volatility in a stock. As I said, there is nothing called NSE gives margin. When you buy or sell stocks, NSE will ask for the entire money or entire shares respectively. Because you commit to trade intraday by using our product type as MIS, the brokerage gives you the additional leverage. So for stocks which I have bought under 9x for example, margin amount blocked sayand I dont have any margin left say my margin left is only 50 rs after blockage, If I make a loss in that MIS stock of more than or which one I dont knowwill the stock be automatically squared off by zerodha?

Is some team monitoring for this square off or it is done automatically by the system. I know the leverages are calculated based on put option writer profit 360 and there is really a very rare chance I make a loss of more than the margin which got blocked. Still wanted to know what would happen in such case. Our Risk management team monitors this. I want to do calendar spread in futures in niftydifference between august and september nifty is 50 and i bought 10 lots of nifty and i expect the price to reducesuppose price reduced to 48my position will get automatically clear on falling of price or i have to do something else?

Your system blocks margin first on pay-in, then on pledge. Due to this, pay-in money is blocked and not available for withdrawal even when margin on pledge is available. My customer ID is: RM Highlighted this twice to your support staff, but the response is the same. My experience is that your support staff is only trained to provide standard answers copy-pasteand not to look at exceptions or to forward exceptional queries to knowledgeable people.

Let me have this checked, we have just reworked on our collateral margins, so ideally should not happen. On the ledger, the margins that get blocked is on the cash balance. Margin blocked for position taken: 1,23, If you view your ledger, you will see a negative balance of Client confidentiality should not be taken lightly. Secondly, nothing irritates a client more than highlighting the same thing multiple times and receiving standard responses even after highlighting to the CEO.

Did have a look at the screenshot. Ideally you should not have faced any issue whilst placing the withdrawal request. While we checked in put option writer profit 360 test servers, the withdrawal request was going through. In case you face this issue again, please shoot an email to venu zerodha. Before the market closes i plan to take this position overnight, now the cash in my account 9k is more than the required compulsory SPAN margin of 8k but less than the required overall margin of 10k.

Will i be allowed to convert my intraday position to overnight, with total cash of 9k in my account? If the position makes further losses does not maintain SPAN requirement then chances are your risk management team will square off my position? Thanks, so this penalty is not applicable if my margin is above SPAN but below total margin rite? And what happens to the funds ,do they reflect in my trading account as soon as i sell stocks.

Yes, you can buy and sell using CNC during a day, it will be considered as an intraday trade, yes the funds will be available immediately along with the profits you made or minus the losses you made on the trade. Check this post Hello Nitin, I have a query regarding margin provided. My friend opened a trading account with a broking house, where only margin is required to sell an out of the money NIFTY call.

Is ZERODHA also thinking of reducing margin requirements? This margin you are talking about must be for intraday, because for overnight position, exchange has set a minimum otherwise which a penalty is levied, immaterial of which broker you trade with. Check our SPAN calculator, to short a call overnight margin requirement is around mt4 forex accounts receivable management, so intraday is around 10k.

Yes you are absolutely right. However, I went through the details and observed that there is a difference between zerodha and other brokerage in following scenario:. Current Nifty —. Note that this is not intraday margin. Is it that they are charging only one way considering that there could be risk at one side only? Kailas, margin required for holding positions overnight is as stipulated by the exchange and there is be a penalty in case it is blocked lesser than what exchange says.

My guess is that you are comparing with what the other broker is charging you for intraday with ours which is for overnight. Just want to ask why the margin for cover order for Futures has been increased recently,it has been doubled for each lot, I really love Zerodha for initiatives like crowd. We increase margins usually if a particular stock becomes extremely volatile.

Most of the stocks like india cement,oriental bank of comm,justdial,crompton,jubfood…they used to show for 1 lot as or justdial it was …now they are showing asit is almost times you have increased. Please look into matter as it hampering my trading plan. Yogesh, you must have mistaken, just double checked margins have put option writer profit 360 been increased in the last 2 months.

Suppose I wanna buy nifty future oct 1 lot I shld have margin of Rs. I wanna sell nifty future nov 1 lot I shld have margin of Rs. Now during 10 a. I had only one position i. Once I clear One Of position from above do I immediately need to deposit the margin or how will It go? Can you please explain In detail. No, you will need atleast 31k to enter the positions as the margin required to enter the first lot is 31k.

Yes, if you exit one of the positions in the spread contract, you will need enough margin to hold the other. If not, the positions could get squared off by our RMS team immediately. I believe total margin is SPAN margin plus additional margin RMS margin — I believe the SPAN is calculated based on volatility and VaR and mandated by exchange; how is RMS margin calculated at Zerodha? Also on related trades e. At the beginning of the month:.

I sell 10 ATM CE contracts of A for a premium of Rs. I buy at the same time as above 10 ATM CE contracts of B for a premium of Rs. Clearly the margin that I paid initially for shorting CE options in A is completely eroded because of the increase in prices BUT at the same time I have made a lot more money in options for B. Also volatility for B prices is more. Also, exchange will charge a short margin penalty if you hold position without the minimum SPAN margin in your account.

Scrip — Tata Steel — NSE —. Buy Amount with Margin as per your Intraday Margin Calulator 9x — nos — In many cases the margin requirement is illogical and ridiculously high. Few days back you had invited for feedback from trading community which you will pass on to the stock exchanges — can we give this as a feedback to reduce the margin requirement to logical levels? Yep, we have already sent this to the exchanges.

As you are probably aware, the lot size of Nifty is reducing to 25 by October 31st. I hope NSE will do something soon to reduce these ridiculously high margin requirements. I was not aware of the change in lot size of Nifty. Will that be split as 2 lots automatically? Also reducing the lot size will only reduce the entry barrier but the cost of trade will still remain high due to high margins rite?

Margins will also automatically drop per lot, as in you will be able to trade 1 lot with around 15k in your account. Check the circular here. I guess the reason for doing this is to improve liquidity, as the margin requirement per lot had gone up quite a bit with Nifty going from odd levels to Margin requirement will basically drop by half, so if you could trade 1 lot with 30k, you will need 15k to trade 1 lot from now.

You can find it on this link. Yes, if the margin drops below SPAN is only when we square off for your NRML positions. And that too this is typically done only by end of the day between 3pm to 3. Typically when big market movements happen, like yesterday, exchange margin requirements go up during the day. This is not captured by the SPAN. I tried keying in the contracts again. The Exposure margin matches exactly.

SPAN still is off by 0. Just saw a very interesting thing — The Exposure market in SPAN calculator matches exactly; within 25 paise; the difference is due to rounding error the Exposure market in the Daily Margin Statement that came on Nov The SPAN margin matches the SPAN margin exactly; the difference is Rs. Click here to see the option chainyou can use the drop down on expiry date to choose the expiry. Are the margin requirements that are prescribed by exchanges same for everybody including retail investors, Brokers, FII etc?

Please let me know if i can do something like register as a sub broker or something so that my margin requirement for shorting options can go down? As per my logic the margin requirements is somehow proportional to the option premiums. Is there some reason for this or am i missing something? The reason i said that the option premium goes up as the value of the underlying put option writer profit 360 goes up is because i made a simple calculation using the Black Scholes option calculator.

Keeping everything constant i. Of course Sukesh, if you have bought calls and market goes up, the value of call will definitely go up. That is because ATM options would have now become ITM and that would mean that for every point movement of the underlying the option premium also goes up by the same. The best you can do is place a limit order and hope that it gets executed. You can see the margin required to write options on our SPAN calcualtor. Nishant, you have bought deep out of the money option, so Nifty has to move significantly from the current odd levels for you to see any uptick in the option price.

Buying deep OTM options, are like buying a lottery, the chances of getting it right is very very slim. Traders actually write more calls than puts. This blogpost on margin policy has nothing to do with the question. By asking in the right places, will help anyone else in the future having the same question. Send a request to india zerodha.

By next day you will have that margin in your trading account. Yes you can trade on BSE derivatives with us, the exchange derivatives bit on BSE is relatively new and probably will take a while before retail participation picks up significantly. At expiry, all out of the money option prices go to zero so option writers make profits. Open interest refers to the number of contracts that are active for that particular scrip.

Total Open Interest refers to the total number of active contracts for that entire derivative chain. Yes STT is on premium — 0. If you write CE and Nifty closes at or anything below that, the entire premium that you would have received would be your profit. So if you have shorted at Rs 15, 4 lots orthat would mean profit of Rs as profit.

It has to be her bank account. If you have shares as CNC, it will remain like that and the shares will be credited to your demat account. If you have bought another quantity as MIS intraday it will get squared off at 3. If in this 10, you want to convert to CNC, you need to do it before 3. I am new to futures, trying to understand few things. Please excuse me if i dont make any sense. I sell nifty future at say which has lot size of 25, so how much money should my account have.

Now while squaring off for the dayi buy back nifty futures at with a profit of 10 points. So it is as good as margin leverage provided by you guys on equity intraday but put option writer profit 360 the leverage is straight from exchange. Vicky, let me look at that answer, if someone as answered like that on tradingqna he is wrong. If you have written options, STT is already paid. That is how markets are demand and supply. At Rs 11 there was no demand, at Rs 10 there was.

It is not because of expiry, that is how markets are every day. Do be more specific when asking on tradingqna. Both American and European options, can be bought and sold or vice versa on the same day. The difference in American and European is that all European options can be exercised only on the last day of expiry.

In Indian context where all options are cash settled, the difference is hardly any. There will be no trades in future. I have margin benefit through pledged shares. Yes works like on NSE. Put option writer profit 360 this option chain for liquidity on BSE website. Liquidity on BSE options are usually available on a few contracts. Put call ratio isopen interest of Puts divided by open interest of calls. Have you seen this post? Sir, If I Buy Nifty Dec14 CA and short Nifty Jan CA, What will be the total margin requirement?

If yes, what is the no of times margin. Also plz let me know the amount required in account for executing the above strategy for quantity each side including the margin given by zerodha Varun, you can use our SPAN calculator to have this checked. Best to see how PCR changes with change in market, this might be more insightful. For past several days it is the other way round; the Exposure margin is showing in its proper column.

In your own interest, its best to maintain both SPAN and Exposure margins for any carry forward positions. At the time of entering the position I keep some extra money in the account; however if the market turns suddenly then I may not realize in time that margin has gone low before the market close. And as last week has shown I may not even be able to logon to the system even if I had an idea that something is going wrong.

Hence the question about square off — Nithin had earlier on this blog on Nov 1 and Nov 4 commented that positions will not be automatically closed as long as there is enough money to cover SPAN margin. Is that still true? Even if we do have funds, mobilizing them into your accounts may take a few hours and better to have some forewarning. Yes, sending alerts on margin is something that we definitely intend to have in the things we have planned for future.

They are different things, check this link. You can ask all your market related queries on TradingQNA directly. You can use the collateral margins for both equity and currency trading. Where do I get list of approved securities including ETFs that can be pledged to create margin? If you can email support zerodha. Nishant, there are blog posts on everything here on Zconnect. The sales person who helped you get started, will call and give you a demo.

Penalty is charged by the exchange when the margin in your account is lesser than the minimum SPAN margin required for the futures. So for Nifty 10 lots, if SPAN is k and your account balance becomes k. We are one of the few members to clear with the exchanges on T day, so our margins are lower than most brokers out there. Same with currency and equity options. Arvind, out of the odd members on NSE, only or are retail brokerages.

The rest are doing some kind of proprietary trading, and with decent amount of capital. So yes, there are many such professional trading firms sitting on big capital who like to short and especially out of the money call options. The margin requirement is same for everyone. Example: Natural gas trading at Rs I want to place a buying order Rs and stop loss with a target By selecting product type as MIS how can I handle this situation? Is there any extra margin required to place 3 order at the same time when none of these get executed?

Buy SL-M triggerSell Sl-m TriggerSell limit If there is no cash, we will square off your position to the extent of the losses. If you have cash balance, it gets adjusted with this cash. If there is no cash, liquid bees gets squared off to the extent of the losses. Every broker who allows you to trade online takes a POA on the demat account. The POA is limited power and can be used only to debit shares from your demat account. This is required because when you sell shares, without the POA we will not be able to debit and provide those shares to the exchange.

Yes you need to open a demat. Cost is Rs which includes upfront AMC of Rs for the first year. Yes you can using after market order option. I want to know is there any option of intraday margin trading where i can keep the position open for 5 days like the client mode trading of icicidirect. Do i need to square off my open intraday positions the same day? Thanks Param, the exchanges give you the margin benefit only once you have taken both the positions.

So you will still need to have funds to get into the both the positions individually. Once you take the position, the margin blocked will drop automatically. I short RELIANCE MAR — call options Rs5 sometime in first week of March. I do not square it off until the expiry. On expiry day the underlying closes at and the last traded price of this option is Rs 1. What would be my gains? Do I have to pay Rs 1 for options to settle? First let me thank you for giving me this platform to gain the experience of genuine investors.

Its a very big knowledge repository you have created here, which made me to learn trading. As I was only a long term investor till last month. Thanks for that and I have noticed that the Windows application Zerodha Trader always have product type as NRML by default, whereas the mobile application ZerodhaMobile Trading has the default type as MIS. Which is considered to be a defect in the mobile platform, since mobile info is more prone to ignore because of the size.

Could you please change the default type to NRML in the mobile platform as like in Windows application. Since I had a successful 1st trade in windows application, but when I trade in mobile today I didnt notice this and ended up buying as MIS:. Attached the screenshot for reference. Log into the mobile app and tap the orange settings button. Setup the default product type you want, the default lot size, etc.

If i short stock option and incurr MTM loss, whether it would be debited on same day or on the day of squarring off the position? Quick question regarding pledged shares: Can the collateral amount made available after pledging shares be used to purchase additional shares for overnight delivery CNC? Will this result in the ledger balance becoming negative?

Collateral amount can be used only for futures and option shorting trades trades where margin gets blocked compared to money getting debited from your ledger. Yes this will result put option writer profit 360 ledger becoming negative as the money gets debited once u have bought. A quick question may be repititive:. Rajesh, when you pledge, your account is credited with margin for you to trade.

Hi, i am prely an intraday tradermost of the tme i keepscalping and have a margin amount of 50k to trade under MIS, but with my amount of 50k i can trade either in commodity or FNO of equity, so can u alow me to trade both using same margin amount, if not permanently then atleast for some days. Hi, i am purely an intraday tradermost of the time i keep scalping and have a margin amount of 50k to trade under MIS, but with my amount of 50k i can trade either in commodity or FNO of equity, so can u allow me to trade both using same margin amount, if not permanently then atleast for some 45days, by the end of which i am sure to make another 50k and maintain a seperate account.

If I have say stocks of company A and I am writing a call option of company A stocks in 1 lot. So do I need to keep margin in that case? Yes Deepak you will need margin for writing options. But if you have pledged these stocks with us, you get a margin using which you can write put option writer profit 360 of that stock or any other that you want. To pledge, send an email to support zerodha.

Flat Rs 20 per executed order for all type of orders? Yep flato for all order types. All other charges as stipulated, check our brokerage calculatorand our charge list. Brokerage will be Rs 20 or 0. In this case, since you bought for Rs and sold forthe total turnover is around 20k, and hence brokerage will be only Rs 2. I have one small query.

Does Zerodha supports long dated Index Nifty option? So can I buy a NiftyDec,CE option on Zerodha? I can do that with my current broker, wanted to know whether you support or not. My current broker has a feature where if you buy a stock for delivery and before end of the day you square it off, then it is treated as intra-day and the corresponding brokerage is applied. So does the same work at Zerodha as well if I buy a CNC order in morning and then sell it by PM?

The margin money I pay is my capital locked and my returns from the spread is not even sufficient to meet the costs like riskfree interest cost of my capital, taxes and brokerage etc let alone to cover the kind of risk I take. I can probably make some money only by selling naked options which in my opinion is mindless way to trade. I have gone through various posts of yours and I find your reasons for not giving this margin benefit for spreads like 1.

What if I close the bought portion of the spread leaving the written option open. What if there is no liquidity in the market etc. You also say that unless NSE introduces spreads as seperate products, this margin benefit will not become a reality. If this is the scenario, how can we expect to see increased liquidity in the markets.

The most important part here is, western countries offer this benefit to spread orders limiting the margin requirement only to the extent of risk exposure. I believe they follow the same SPAN. How do they manage to give this benefit. How about you brokers join together to convince stock exchanges to introduce spread products with margins only to the extent of risk. Are these exchanges focussed on cashflows they get rather than boosting the system with quality products? What is SEBI doing?

In my opinion, this encourages Naked option writing which will leave the investors broke and on the road when a black swan event happens. Unless and until such sensible limited risk, limited return products are available in the market with reasonable margin requirements, liquidity will be a distant dream. I have just let out my frustration for not being a part of a sensible game.

Understand your frustration Shiva. The issue with India is the abysmally low retail participation. NSE launched some really nice products like Interest rate futures, VIX, among others. If you look at the liquidity on these contracts, it is zilch today. I guess the exchanges are also in a catch 22 situation, they can launch new products only if there is liquidity and participation from the broader market.

But yeah, we have already represented this issue to the exchanges multiple times. As for protecting the small investor — this morning SBI futures seemed to be selling cheaper than SBI stock based on both bid and ask quotes. I actually sold the futures before I realized this was the case! The difference was about Rs. ICICI bank Jun futures are selling cheaper than May futures; but there is a Rs. Best to send an email to support zerodha. They will check and get back.

I have a question on intraday trading. Which order type MIS or NRML or CNC should I use? If you want to short sell a stock you have to use MIS, but all MIS positions get auto squared off at 3. The only way you will be able to do this is by shorting futures — you can short futures using NRML and hold it till close of the day. If it goes up, it will show in your trading platform in cash positions, and are you are supposed to keep the minimum SPAN margin atleast.

If market goes up points and you hold 75 short nifty, you make a loss of 30, Your total account balance isbut you are holding positions worth Assuming the losses exceed and your account balance reduces fromthat is when you need to bring in more margin. Shashank, the trading platform will be updated with the latest margins. So you get enough time to transfer. Equity Margin are Provided only to listed stock put option writer profit 360 zerodha or all the stock traded in BSE or NSE hi nithincan i open an trading account of my 5 family member different ids with single login and can execute orders behalf of my 5 family members i can see my holding details from back office login, but its not visible in trading portal….

Divesh, sometimes the holdings get updated on the trading platform a little late. But do refer the backoffice Q for it. Yes you can, send an email asking to pledge the stocks to support zerodha. You will get margin from those pledged stocks after haircut for you to trade futures or shorting options. Make sure to keep some cash in your trading account for any MTM requirements. The systems will allow you to. We are more lenient on days when market is not moving around, but around times of volatility we get a little put option writer profit 360 with our rms.

Put option writer profit 360 assumed your were asking on an intraday futures position. But that said, if markets suddenly get volatile, we would definitely get stricter. In both the cases you have Rs 1lk in your account right? So there is no need to worry off square off. The second case is called a calendar spread, margin requirement for calendar spread is quite less. Once you buy this month and sell next month or vice-versathe margin required for this will not be 32k, but only around 5k.

Yes Dharani, you will have to bring in more funds to place the new order, and only once position is taken does the margin drop. I read through this blog and understood initial margin requirements well from your answers. But I have a question related to Put option writer profit 360 Margin Requirement. Please consider following scenario. Current market is at My position is LONG NIFTY — FUTURE- and covered this position with BUYING NIFTY-PUT ATM.

Though its tightly covered, I have a hypothetical question. Lets assume due to whatever news, Market goes down points in a day or two, and would you require me to pay Maintenance margin, if so how to find out how much it is, or will you allow my position to stay not force closed by your brokerage, means allowing with Initial margin alone, as it put option writer profit 360 tightly hedged with PUT option.

Thanks for your reply. Jai, the position is hedged, so the margin required to trade futures will be lesser once you have taken both the positions. But once you have taken the position, any loss on futures is debited on the same day. The profit you make from Puts is not realized until you sell it. So you will be required to maintain the margin at all points of time, if you make a loss, you need to transfer more.

My ID :DT There was mock trading held by exchanges today, we had put option writer profit 360 dummy margin money of 10lks to everyone for that. Account balance will be normal from monday. We have added this on put option writer profit 360 brokerage calculator put option writer profit 360. Squareoffs are automatic, no intimation is given out. NSE gives out adjusted closing price around 3. If you loose money, we will first square off 1 lot, i.

Ankit if the money is lesser than exchange stipulated SPAN margin, then yes penalty is charged by the exchange. Yes, similar penalty on MCX also on short margin. As shares are transferred from my Demat account to brokers Demat account for margin, what happens in case of brokers defaults in margin requirement with exchange. This question raised Just to understand the risk involved in pledging of shares.

Risk arising not due to my trade but due to brokers non compliance with exchange regulations. KAG, if a broker goes bust then both your funds and stocks lying with the broker might get blocked for a bit. In the worst case scenario, exchanges have the investor protection fund to guarantee that your investment comes back to you. Thanks Nitin for your prompt reply…. If I can ask this…. Bought Nifty Aug CE for Sold Nifty Aug PE for Bought Nifty Aug PE for For my position mentioned above.

Is my understanding correct? Or is there any thing else that I need to monitor? Yep you are right, just monitor those two things. Hi Nithin, i would like to switch from ICICI direct to Zerodha but iam currently as a traveller in Thailand for 4 months. Is there any way that i can open account? What is the maintenance margin required in my account before my position is automatically squared off? SPAN is the put option writer profit 360 margin required below which there will be a penalty from the exchange.

So by the end of day if your margins are lesser than SPAN it will get squared off. You can use our SPAN calculator to check for this. Do you allow mutual put option writer profit 360 to be pledged for margin money to write options? Somewhere I had read that Zerodha will allow mutual fund investing in some months. If true, is it possible to invest in mutual funds and use that for margin?

What would be the haircut on that? Thanks, Abhishek, currently no. But yes we are working on taking the MF module live at Zerodha soon. Once done it should be possible to pledge. Details of Haircut, and etc will share once we are live. There are two possibilities. Trade goes in my favour…so there is no question of providing margin.

If nifty goes at … my loss in futures lot will be approximately equal to my profit in Put option. So is there any need to provide any additional margin? If yes, what will be the margin requirements in that case? The margins required would be Rs. What will be the margin requirement if i have availed collateral margin against my securities? Sir, Please clarify this. Supposing if I buy 10 Nifty contracts with the help of leverage margin all contracts under MIS type and sell a certain number of contracts before the system automatically square off them, Can I be able to convert the balance contracts to normal order and carry forward next day as I have squared off certain contracts and hence some more margin is available.

Assume today is the expiry day, NiftyI write CE 2 at AM under MIS. Now assume at PM Nifty and there is NO buyer for CE. Hence at what price system will automatic square off at PM. System places a market order, but yeah if there is no buyer it will get carried over to the next day. There will be no way to exit this. Also, do I need to pledge the equity shares to get margin against them? Or simply by holding these shares in my Demat account, I can get the margin?

Can you pl help? The user experience will remain the same. It would be better if you provide margin calculator for shorting in equities too!!! I doubt if it is same as in case of buying in intraday, like if it is reliance then 9x for buying and for shorting too?? Buying and shorting is the same margins.

Hi, Nithin, there is no doubt that you have done a lot with regard to developing new put option writer profit 360 like, Pi, Quant, Q backoffice, Kite and many more, but what could have been more useful to the traders has not yet been done. You provide very less margin in equity for stocks such as Jindal steel, DLF which is just 3 times, and at max you provide 9 times for intraday. Can you please reconsider increasing the limit for the equity 15 times or more.

In this regard, RKSV securities is much better. They are providing 15 times for MIS for all stocks listed in FO put option writer profit 360 20 times for CO and BO for all stocks. I humbly want to say that simply saying we are Zero Brokerage and all will not benefit traders but give more margin for intraday so that traders can trade in more volume and can get benefited. Request to look into for providing atleast 4 times margin on available capital like many other brokerages for intraday trading MIS positions.

We will let you know when we have pledging for MF ready. There are many stocks which are frequently traded with high volumes are given only 3 times. Kindly look into this. Uniform margin is not really possible. This is not a risk a brokerage should ideally take, being aggressive on leverage is what causes brokerages to go bankrupt.

You are right, but still 3 times is very less. At least 5 to 6 times would have been better. If possible, then the current margin policy is okay. Kindly do something pls. I want to do trading. Could some ome come to my place and teach me once. Please reply to my mail. Yesterday i purchased 10 share of idea at and sold at pm noon. After that i purchased AMTEK 10 shares at and sold pm.

Similariy i purchased COALINDIA 05 shares and sold at pm. But at pm 03 orders COALINDIA,IDEA,AMTEK are placed and orders are complate also. But the problem is that these orders are not placed by me. It is shown that these orders are placed by ADMIN2. Kindly tell me how these three orders at are placed automatically and who is ADMIN2?

DT All positions that you take as MIS intraday get auto squared off at 3. The user will show as Admin 2 for those. My guess is that either your buying or selling was taken as MIS. Gettting someone to call you up. Do send such queries to support zerodha. You are right but still 3 times margin for some good stocks is very less. I am not able to get intraday margins for companies like Dishman Pharma, Granules India, NCC and Sintex Industries. Will they be added anytime soon? Will get our RMS team to have a look at these stocks.

Granules, Dishman, NCC and Sintex are added to the Intraday Margin List with leverage of 3x times which is decent. Sir,I have a account balance of ,am I allow to used margin for buying and selling stock with that minuscule amount. Yes, you can trade stocks. Charging exposure margins is at the discretion of the broker. Total margin is the sum of SPAN and exposure margin. Please let me know whether we can get margin against mutual fund units. Because returns are very low I want to have position size bigger, for it to become profitable.

But should be possible soon, we are about to launch our MF platform. It is not question of trading in ETFthat I am doing. The question is related to our existing folios with FundsIndia which can be used for pledging to get margins. Before pledging we have to compulsarily dematerialise them as client can sell them directly. Please let me know when Zerodha is giving facility of margin against MF units. Eagerly waiting for this service to be launched by you.

My adviser was insisting to open an account with Astha-trade for the margin against MF units. I denied for it. There are no Intraday Margins Provided on Jet Airways and Century Ply. If you can check with your team, the minimum intraday margin of 3times can be provided on these stocks. Thanks Could not find them Jet Airways and Century Ply in the Zerodha Brokerage Calculator List for Intraday. You can trade crude or crude mini using product type as MIS for intraday.

Yes, your calculations is correct. Leverage is a double edged sword, if you use it correctly the returns can be substantial, but it can also wipe off your account. ALSO HOW TO PLACE THE PREMARKET ORDER IN ZERODHA KITE. You can also buy as CNC and sell put option writer profit 360 before 3. AMO is to place after market. My trading ID is RS

Naked Insurance Teaching how to write put options for consistent profit on the US Stock market

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