Zerodha is a popular name and is used for trading stocks and commodities, etc., and the brokerage charges are the lowest. zerodha margin calculator is the tool provided by the broker and this tool helps traders in calculating the margin required to buy or sell a particular stock. But the tool will be of no use if you don’t know how to use it. This guide will take you through all the questions related to this calculator such as what is the use of the tool and how helpful this calculator is and the best way to use to increase your trade.
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Zerodha offers different scripts for which margin has to be calculated and the calculator has been designed for that purpose only. You can use it to calculate the number of shares that can be additionally acquired through Zerodha leverage. If you want to calculate margins for different trading segments such as Delivery, Intraday, Currency, F&O, and Commodity.
What is Zerodha Margin?
The additional amount borrowed from a brokerage firm to invest in shares is known as margin. The amount borrowed is equal to a short term loan because it involves lending money to someone to buy securities making them capable to get more stocks in case they are not able to sustain. All this process is done properly, can get you huge profits, however, if it fails, the lender loses his money and gets indebted to the broker. In order to avoid the loss and prevent failure as zerodha calculator plays an important role as it provides different multipliers for different scripts.
Kinds Of Zerodha Margin Calculator
The type of Zerodha margin calculator provides you different margins on the basis of the stocks you are trading in:
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Zerodha Margin Calculator MIS
In MIS trading, the trader’s position is squared off at the end of the day and if it is not squared off by the client, Zerodha does so on the client’s behalf and will provide the margin ranging from 3-12.5 times.
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Zerodha Margin Calculator CO
To stay safe during trading, put a stop to it and cover your trade if there is an early loss. This option, known as Cover Order, is also provided by Zerodha to provide cover to their orders. It is suggested to put stop-loss ranging from 0.5%-2%.
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Zerodha Margin Calculator BO
BO stands for Bracket Order that implies putting a target in addition to the stop-loss with the desired buying price, hence there are three components that are put to work: Buying Price, Stop Loss, and Target Price. When traders target leveraging profit booking in short terms, this strategy is applied at that time and is also used during Intraday.
The functioning of Zerodha Margin Calculator
Margin calculator Zerodha is a very useful tool only if you know how to get the best out of it otherwise it will be not of much use to you. You can use the tool to look for the desired script and the tool will show the margin provided on the particular script and even on the additional scripts.
Choose the product segment and look for the script with the help of the calculator. This way you can keep your accounts stable when there are uncertainties in the market values and the tool will give you an automatic square off so that you can prevent yourself against any losses. The brokerage calculator zerodha tool will show the multiplier and calculate the correct leverage for trading.
Zerodha Equity Futures Margin
To trade in the Equity derivatives segment, there should be enough margin in the client’s account. The brokers have to collect the total exposure and span margin, this has to be done to take trading to the next session
so that the trading can be carried forward to the next trading session. In addition to MIS and CO, margins for NRML and MWPL can also be obtained.
Zerodha Futures & Options Margin
Zerodha Futures & Options Margin calculator helps in calculating margin for option writing or shorting. This Margin Calculator is among the simplest and competent tool that can calculate margins for various options and futures segments.
Zerodha Commodity Margin
Zerodha Commodity Margin offers margin for NRML, MIS and CO trades.
If a client takes the NRML position, he needs to obtain the required margin in their trading account. This way the client can hold the
This will permit them to hold the position of intraday trade futures or overnight positions until it gets expired.
On the other hand, MIS is known as Margin Intraday Square off and whenever a client enters intraday through MIS, they get the extra advantage of leverage about 50% of NRML margin.
Types of Zerodha Margin
Now, let’s know about types of zerodha margin:
1. CNC Equity Margin
- Delivery based trading of equity
- No leverage provided
- Also known as Cash and Carry
- CNC method
- There is no option to square off the position automatically.
- Intraday trading is when shares are purchased and sold on the same day.
- No brokerage charge involved
- The stock is delivered to the client as long as it is bought by him. However, in case of Equity Delivery, it gets debited from their account.
2. MIS Equity Margin
- The timings allowed are 9.15 am – 3.20 pm and it can change as per the market volatility
- Known as Margin Intraday square off
- Buying and selling are allowed
- For Intraday Margin, 500 sticks are eligible.
- To calculate the Intraday margin, multiply your stock by 10 times to get the minimum value.
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zerodha console is very helpful in trading and whatever trade you are dealing in, you can always consider this margin calculator. As a trader, you need to ensure that there should be an adequate balance in the account before taking any position in the market. Zerodha will automatically square off your position if you don’t have the balance in your account.