Compare Brokers Articles Reports Glossary Complaints

Zerodha Margin Exposure Limit, Leverage for Intraday and F&O

10.37% 979,241 Clients

Margin Policy Update

As per the SEBI rule, from 1st Jan 2020 brokers cannot offer additional margin (i.e. 20, 40 or 100 times) in any segment including intraday at BSE, NSE and MCX. The margin is now decided by the exchange and remains the same for all brokers. For all intraday product types i.e. MIS, BO, CO trades, the leverage will be the same which is the VAR+ELM margin. Visit New margin requirements in India Stock Market to know more.

Incorporated in 2010, Zerodha is one of the popular online discount brokers in India. The Bengaluru based company is the largest broker in India by the trading volumes. It is also the largest stockbroker by active clients in India.

Zerodha's key USP is its pricing model and high-end technology solutions. It charges zero brokerage for equity delivery investments. For intraday trades, the brokerage rates are the lower of Rs 20 or 0.01% per executed order.

Zerodha offers a range of trading platforms and tools to its customers like-

Kite - A web-based trading platform.
Kite Mobile - A mobile trading app for Android and iOS devices.
Kite Connect API - An API for startups to build own trading platforms.
Console - A central dashboard (back office) providing a complete view on your investments.
Coin- A platform to buy mutual funds commission-free.
Coin Mobile- An app to invest in mutual funds.
Sentinel- A tool to create price alerts.

Besides, Zerodha customers also get access to many partner products like-

Smallcase- A thematic investment platform.
Streak- One of its kind platform in the world to create trading algorithms without coding.
Sensibull- A platform that helps traders select the right Options strategy.
StockReports+- It provides daily insights on over 3000 stocks daily.

Apart from low brokerage, Zerodha offers many other facilities to its customers. Zerodha exposure is one such facility. It allows customers to do more trading with limited funds.

Zerodha Exposure Limit

Zerodha exposure allows customers to trade many times over the funds in their account. The extent of exposure by Zerodha is different for different segments and trades. For intraday trades in stocks, leverage given by Zerodha is 20 times of the funds in the customer's account. So, if you have Rs 5,000 in your trading account then you can do intraday trading up to Rs 1 lakh. But not all stocks qualify for margin funding by Zerodha. Also, the margin limit is different for different stocks.

You can use the Zerodha margin calculator to know the margin limit on your trade. The calculator is available at Zerodha's website.

Zerodha Margin Policy- Key Points to Note

The exposure given by Zerodha is available only for intraday trades. There's no margin funding for delivery trades.
All orders will be automatically squared-off around 3:20 pm. But it is the trader's responsibility to square-off all open positions.
All open MIS positions get converted to Cash and Carry ("CNC") or Normal positions. The company squares off all such position if there are insufficient funds in the account.

Zerodha provides a higher margin on trades with Bracket Order (BO) and Cover Order (CO).

Zerodha Margin

Segment	Trading Margin
Equity Delivery	1x (no margin)
Equity Intraday	Up to 20x (based on the stock)
Equity Future	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin (Span+ Exposure)
Equity Option	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin (Span+ Exposure)
Currency Future	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin (Span+ Exposure)
Currency Option	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Total margin (Span+ Exposure)
Commodity Future	Intraday - 40%(2.5x), Carry forward - 100%(1x) of Span
Commodity Option

Zerodha Special Offer

Free Equity Delivery Trading

Get free equity delivery trading (truly no brokerage) and pay flat ₹20 brokerage for Intraday and F&O trades. To open an account with Zerodha, simply leave your contact information with us and Zerodha representatives will call you.

Frequently Asked Questions

1. Why Zerodha margin reduced?

Zerodha margin is reduced across all segments including intraday at BSE, NSE, and MCX on Jan 2nd, 2019. This is in line with the new margin policy introduced by SEBI. As per this policy, brokers cannot offer an additional margin. The margins are now prescribed by the exchanges and are the same across the brokers.

Discuss this question