You might be wondering what made Zerodha margin calculator a topic of discussion here. Yes, the product is useful as the traders can easily calculate all their margin needs to trade the stocks of their choice. The margin calculator has a crucial role while trading future contracts. By contributing a little investment as a margin, one can reap the healthy return potential by executing the trade orders having high contract values. In simple words, the limited fund in your account can not hold you back from trading or investing in the high value shares listed in any stock exchange. You can trade such positions set by exchange at ease with the help of leverage provided by the broker. However, the leverage funding offered by brokers varies as per their respective terms and conditions.
By following the smarter approach towards the stock trading, one can make derive a good profit. The tools like Zerodha margin calculator and Zerodha brokerage calculator are made available online to help traders estimate the needs associated in advance.
Zerodha Margin at a Glance
Zerodha NSE margin overview –
|Product type||For Intraday Trading||For Delivery based trading|
|NSE Cash||5X to 20X||1X (CNC)|
|NSE Futures margin||2X or 50% of NRML||1X in NRML or 100% exchange prescribed margin|
|NSE Options margin||No margin in option buying, In Shorting up to 2X||1X in NRML or 100% exchange prescribed margin|
|MCX/NCDEX Futures margin||2X||1X in NRML or 100% exchange prescribed margin|
|MCX/NCDEX Options margin||No margin in option buying, In Shorting up to 2X||1X in NRML or 100% exchange prescribed margin|
|Currency Futures margin||Approx. 1.8X of NRML||1X in NRML or 100% exchange prescribed margin|
|Currency Options margin||No margin in option buying, In Shorting up to 2X||1X in NRML or 100% exchange prescribed margin|
What is the purpose of Zerodha margin calculator?
Zerodha margin calculator presented is built and designed to evaluate the margin requirement while trading in equity, commodity, Future and Options (F&O), currency etc. The tool is specifically developed to find out the margin or token money needed to execute the particular contract before executing it actually.
In other words, the main objective of the margin calculator is to allow traders to know how much margin is required for any stocks he wants to trade. Margins are charged from a risk management viewpoint, to avoid any counter-party default.
The coding in the background of margin calculator is done diligently keeping in mind the calculation that supports the market product range of the broker.
Utility factor of Zerodha Margin Calculator
The device considered here is useful in different ways. It all depends on which segment you want to trade in. It is not just about Zerodha margin calculator but the similar tools by other brokers also perform margin calculation for various market instruments. It depends broker to broker whether they are offering things like margin calculator or other utility products or not.
Margin calculator Zerodha functions in various terms and can be called as:
- Zerodha margin calculator mis or Zerodha intraday margin calculator
- Zerodha margin calculator equity or Zerodha equity margin calculator
- Zerodha margin calculator futures
- Zerodha margin calculator commodity
- Zerodha margin calculator bo or Zerodha bo margin calculator
Why one needs to get leverage?
With the leverage facility, you can savor the position higher than the money available with you. This identifies the power of leverage. Now, you might have understood the importance of margin calculator up to an extent. By the help of such product on can estimate how many shares one can buy with the available margins.
And form the better understanding of the leverage offered for the particular trade order.
Top menu bar of Zerodha Margin Calculator
F&O, Equity futures, Commodity, Currency etc.
Zerodha Margin Calculator Futures
The margin required while trading in Future contracts is termed as initial margin. It is comprised of SPAN and Exposure. Where SPAN is exchange mandated value and the exposure is above SPAN to compensate any mark to market losses. Any trader has to book initial margin in order to proceed for any contract here. Zerodha margin calculator futures can be used to evaluate the initial margin required to carry forward futures and options.
However, buying options in Zerodha require full premium and not margins. Therefore, the Zerodha F&O margin calculator does not display premium for options.
Use of Zerodha Margin Calculator for derivative segment:
When you visit the Zerodha margin calculator section, you will find SPAN Margin Calculator sub page. It is also known as SPAN Margin Calculator. Further you can input the exchange where in drop down you will get:
- NFO for trading in Futures on NSE
- MCX for trading in commodity futures on MCX
- CDS for trading in currency derivatives on NSE
- Further, fill Symbol and lot size and further mark buy or sell.
- You can easily check the box at right side i.e. initially programmed in Zerodha margin calculator to evaluate combined margin requirements. By default quantity in 1 lot size is there, but for more than 1 lot, you need to manually put the value or size as per lots you want to buy.
No. of lots that can be purchased for a particular contract on the basis of cash available and the price can be easily found using the equity futures tool of the Zerodha margin calculator. Equity Futures calculator has additional advantages over a SPAN calculator. You may also find BO&CO at the top menu bar of the Zerodha Margin Calculator.
If the trader intends to hold the futures contract for 4 working days, he needs to go for NRML margins. It can be also accomplished by using the SPAN calculator. However the Equity Futures calculator has a few more advantages over a SPAN calculator.
In the Equity Futures section you may find all the contracts listed, get the contract you want from there. The contracts’ date of expiry is also shown in the calculator along with the lot size and the price at which the contract is trading.
If you are confused between the two contracts, check from the Zerodha margin calculator both for NRML and MIS margin. Any position taken as NRML can be held till the expiry, while all open MIS positions will be squared off starting at 3.20 PM. Clearly, using the Zerodha margin calculator, you can calculate the margin required in case of both, since the from MIS product type one can be benefited through a lower margin requirement. The tool helps in estimating the margin in advance.
In the Zerodha margin calculator, you can see CO/BO option too. There you can seek intraday trade using CO on equities, FNO, currency & commodity. In a CO you can place intraday buy/sell market orders with a compulsory stop loss for a higher leverage than implementing trade using MIS product.
BO is currently available for NSE, NFO, and CDS in the Zerodha margin calculator. Use of the BO&CO calculator is also simple, it is similar to that of the SPAN calculator.
Terminating the review here:
Apart from what we have discussed about Zerodha margin calculator till now, we also want to notify you that such utility tools are available with almost all the leading brokers now. The margin calculator discussed here got the extra attention just because of the intensive publicity and promotions. There are similar trading tools available in the market. Do not depend just on the deliberately created hype, instead use the reliable online resources to set up the best trading portfolio.