Zerodha offer leverage/margin through 3 different product types MIS, BO & CO.
MIS-stands for Margin Intraday Square Off
BO&CO- Bo & Co are types of order if you want to know more about b o and co then watch this video BO-Click Here CO-Click Here
MIS–In MIS the leverage provided is 3-14 times based on the script The exact leverage for every scrip can be found on theMargin Calculator.
BO & CO :BO & CO provide higher leverage compared to MIS as a simultaneous stop loss is placed along with the initial buy or sell order. Since the risk is comparatively low due to the use of stop loss the leverage provided is also higher, i.e. 6-20 times based on the scrip,
BO & CO are not allowed in Stock Options, Bank Nifty Options, Currency Options & BSE Stocks
BO is not allowed in MCX
watch this vedio about zerodha margin calculator.
Futures Trading Margin Policy
Equity (Stock & Index), Currency & Commodity:
While trading futures at Zerodha you can use 3 product types: 1.NRML (Normal) 2.MIS (Margin Intraday Squareoff)
1.NRML (Normal):To take position as NRML will require the full exchange stipulated margin, but once you take a position as NRML you can hold the position till expiry, provided you have expired until such fixed approx margins are maintained.
example of reliance future trading
reliance 26 mar-18
Total margin(nrml)=span+exposure =68,850+45,295 =1,14,145rs here future margin calculator-Click Here
2.MIS (Margin Intraday Squareoff):MIS is used as intraday traders as all open positions get squared off before the end of day.
For equity & index futures, MIS margin: 40% of NRML margin, all MIS positions squared off around 3.20pm.
Example:mis margin of reliance=40% Of NRML Margin
For Commodity futures, MIS margin: 50% of NRML margin, all MIS positions squared off about 25 minutes before market closing
For Currency futures, MIS margin: 50% of NRML margin, all MIS positions squared of around 4.30pm.
Option buying:When you buy options, either equity or currency there is no additional leverage .So if you are buying calls or puts of any contract, the premium required to buy them has to be present in your trading account. You can trade options either with product type as NRML or MIS, but since there is no additional leverage provided if you use product type as MIS
no leverage ,you have to must pay the premium.
EXAMPLE OF BANK NIFTY:
Banknifty 22march 24500 CE-265 rs(premium)
lot size of bank nifty 40.
total margin for 1 lot(buy)=265*40
Option Writing / Shorting:When you choose a short option, the margin requirement depends on various aspects like underlying, expiry, volatility and more.SPAN calculator tool which lets you calculate the margin requirement for shortening an option.
you can short option either using the product type as NRML or MIS. The SPAN calculator tool lets you know the margin required to hold overnight or NRML margin, if you trade using MIS you will need only 40% of that margin.
EXAMPLE OF BANK NIFTY:
Banknifty 28march 24500 CE-265 rs(premium)
total margins for 1 lot shorting[NRML]=span margin+exposure margin
[अगर आपको यह लेख अच्छा लगा हो तो कृपया इसे फेसबुक एंव अन्य सोशल मीडिया पर जरूर शेयर करें| आपका यह प्रयास हमें और अच्छे लेख लिखने के लिए प्रेरित करेगा|यदि आपके कोई प्रश्न हैं, तो कृपया टिप्पणी अनुभाग पर लिखें।]