Posted on 28th Jun 2018
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Zerodha CNC or Cash and Carry is a product type that you choose while trading for equity delivery trades. Once bought, shares get delivered to your demat account and if sold, shares get debited from your demat account. No leverage is provided for delivery trade using CNC. You should have full amount in your account to enter the trade using CNC.
Zerodha offer free delivery trading for such product, so its zero brokerage trading with 1x margin.
Please refer Zerodha Delivery Margin Calculator to calculate your margin/fund requirement.With Zerodha CNC Calculator you can check how many share you can get from available fund.
Zerodha Equity MIS is a purely Intraday product type that allows a trader to buy and hold the script only for trading day. You cannot carry forward the position to next day. You square off the positions on the same day before a pre-defined time, if not then your broker’s RMS will do it for you. Call and trade charges apply when Zerodha RMS team close your position. To avoid such charges investor need to close the position well in advance.
Zerodha Intraday (MIS) gets margin ranged from 3x to 14x. MIS margin update once a day depends on market volatility.
Equity Intraday margin Calculator is a simple to use tool that tells the leverage provided for entering the Equity Intraday trade using MIS order type. It also shows Delivery trade using CNC having no leverage. If you click on a calculator for any particular stock, it only requires you to enter the available fund in your trading account and it will calculate the no of shares that can be bought for MIS and CNC order type.
Please refer Zerodha Intraday Margin (MIS) Calculator to get more details by specific script.
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CO order is also an Intraday product with one additional information which is stop-loss. Stoploss is the limit of loss you are willing to take in case trade moves against your directional view. Since you are providing more specific information to the broker in terms of time and limit of loss you will bear, the margins required is ever lower than MIS product type. Margin requirement will vary based on the Stop loss price.Zerodha Equity CO is purely for Intraday traders so all cover orders (CO) will be automatically squared off around 3:20 PM. In a CO you can place intraday buy/sell market orders with a compulsory stop loss for higher leverage.
For Equity CO Orders, the margin is ranged from 5x to 30x, which completely depends on your stop-loss amount. Please refer Zerodha Equity CO Margin Calculator to get more details by specific script.
BO is a special type of order where you can place intraday buy/sell limit orders with a target and compulsory stop loss (with a trailing SL option) for a higher leverage than MIS product type. Trailing stop loss (SL) is a technique to adjust the SL as and when the script moves in favor of the trade. In BO, first you place the limit order for the buying or selling. As soon as this main order is executed the system will place two more orders (profit-taking and stop-loss). When one of the two orders (profit taking or stop loss) gets executed, the other order will get canceled automatically.
When you place a bracket order, you get an option to either place a fixed stop-loss order, or also an ability to trail your stop loss. What this would mean is that if the contract/stock moves in your direction by a particular number of ticks, the stop loss will go up/down based on if you are long or short automatically. A tick is a minimum a particular stock/contract can move. 1 tick on Nifty is 0.05.
It is also important to note that a bracket order is an intraday order and needs to be squared off before the intraday closing of 3:10 pm. Margin required for BO is same as CO.
For Equity BO Orders Margin is ranged from 5x to 30x, which is completely dependent on your stop-loss amount. Please refer Zerodha Equity BO Margin Calculator to get more details by specific script.
Changes from 1st July 2018 onwards:
Due to margin policy changes by SEBI – For overnight position, one needs to keep SPAN + Exposure both the margin in his account.
This will impact on Intraday margin also – As previously broker need to keep only SPAN margin, now broker need to block SPAN + exposure margin for the intraday position, in such case Zerodha has changed its intraday margin policy –
For MIS trading – Its was 40% of SPAN + Exposure, now changes to 50%.
For BO/CO Orders – margin requirements depended on stop loss amount and was min 1% of contract value for index derivatives now changed to 1.25%. For equity/stocks derivatives it was 2% now it is 2.25%.
Intraday Margin for commodities and currency will remain the same. As there was no exposure for commodities so no changes in commodities.
These changes are across the board and not only with Zerodha, all brokers need to shift their margin policy.
Now let's move on to margin requirement fo F&O trades with Zerodha and Zerodha F&O Margin Calculator:
NRML is a standard product type to buy and hold futures contract. NRML can also be used for intraday future contracts as well. No additional information in terms of length of trade and stoploss price is provided to the RMS system in NRML order hence the margin required is more than MIS, CO and BO orders. Once a position taken as NRML, it can be held till the expiry provided the requisite NRML margin present in the trading account.
Please refer Zerodha F&O NRML Margin Calculator to get more details by specific script.
Zerodha MIS is a purely intraday product type that allows trader to buy and hold the futures contract only for one day. You cannot carry forward the position to next day. You square off the positions on the same day before a pre-defined time, if not then your broker’s RMS will do it for you. The margin required for MIS product type is lower compared to the NRML margins.
Please refer Zerodha F&O MIS Margin Calculator to get more details by specific script.
This is a tool to calculate the leverage given for trading in equity intraday and equity Future and Options using CO and BO. Bracket Order positions get additional leverage since the risk is covered by the compulsory stoploss that you place while entering a position. The BO and CO is available for both Equity and F&O Intraday Trades. The BO is available for exchanges NSE, NFO, and CDS. The margin required is based on the quantum of your stoploss (SL). You can get up to 33.3x margin with Zerodha CO/BO orders.
Please refer Zerodha F&O CO/BO Margin Calculator to get more details by specific script.
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