Margin Calculator Zerodha

Zerodha Margin Formula:

\[ \text{Available Margin} = \text{Equity} + \text{Borrowed} - \text{Used} \]

Available Margin:

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1. What is Zerodha Margin?

Zerodha margin refers to the funds available for trading after accounting for your equity, borrowed funds, and used margin. It helps traders understand their available buying power in the market.

2. How Does Margin Calculation Work?

The calculator uses the Zerodha margin formula:

\[ \text{Available Margin} = \text{Equity} + \text{Borrowed} - \text{Used} \]

Where:

\( Equity \) — Your own funds in the trading account (INR)
\( Borrowed \) — Funds borrowed for trading (INR)
\( Used \) — Margin currently utilized in open positions (INR)

Explanation: This calculation shows the remaining margin available for new trades after accounting for current positions.

3. Importance of Margin Calculation

Details: Proper margin calculation is crucial for risk management, avoiding margin calls, and optimizing trading strategies within available funds.

4. Using the Calculator

Tips: Enter your current equity, any borrowed funds, and margin used in open positions. All values must be in INR and non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What happens if available margin goes negative?
A: A negative available margin may trigger a margin call, requiring you to add funds or reduce positions.

Q2: How often should I check my available margin?
A: Active traders should monitor margin daily, especially when holding overnight positions.

Q3: Does Zerodha offer different margin for different products?
A: Yes, equity, F&O, and commodity segments have different margin requirements.

Q4: Can I increase my available margin?
A: Yes, by adding funds to your account or reducing current positions.

Q5: How is margin calculated for intraday vs delivery trades?
A: Intraday trades typically have lower margin requirements than delivery trades.