Margin Trading In Zerodha – With MTF, you may trade with leverage. It allows you to purchase stocks for delivery even if you don’t have the entire amount needed. Depending on the stock, you can borrow up to 80% of the trading value. The borrowed money is subject to an interest rate of 0.04% per day, or Rs. 40 per lakh every day, as long as the MTF post is vacant.
Margin Trading In Zerodha
The list of stock-wise leverage offered by margin on Zerodha is as follows. The exchanges set the minimum margin, and brokers are free to block more than that per their risk management guidelines.
Zerodha provides the following margin advantages for trading stocks and futures:
1. Intraday equity: Margin Intraday Square Off (MIS) and Cover Order (CO) allow for intraday trading with up to five times leverage.
2. Margin Trading Facility (MTF): Take out a loan to purchase stocks at a daily interest rate of 0.04%.
3. Futures: 40% of the margin required by the exchange
Intraday stock trading: 3–20 times leverage on about 150 liquid equities
How does the margin benefit operate?
1. For instance, you can purchase up to five times the value of the stock you invest in if Zerodha offers five times leverage.
2. The borrowed money is subject to daily interest charges.
3. The level of leverage available and the list of stocks that qualify for it are subject to change.
4. To find out which stocks qualify for leverage, utilize Zerodha’s margin calculator.
Using Cover Order (CO) for equities and Margin Intraday Square Off (MIS) for intraday leverage, Zerodha offers up to five times (20%) margin leverage. Stocks can be purchased or traded for up to ₹5 lakhs intraday for ₹1 lakh. The list of stocks (DOC) and the leverage offered are subject to change per Zerodha’s policy. Due to SEBI‘s peak margin regulations, the equities F&O, currency, and commodities divisions do not offer leverage.
Were you aware? To prevent brokers from taking significant risks by offering customers larger margins or leverage, peak margin regulation was implemented in 2020. The highest intraday leverage is now available from all Indian trading houses.
margin on Zerodha
