intraday margin zerodha

Wiki Article

Intraday trading is one of the most popular ways to participate in the stock market, and margin plays a central role in how much capital a trader can use within a single trading day. Zerodha, being India’s largest discount broker, offers a transparent and rule-based intraday margin system that complies strictly with SEBI’s peak margin regulations. Understanding how intraday margin works in Zerodha helps traders plan positions, manage risks, and avoid penalties.

What Is Intraday Margin?

Intraday margin is the leverage offered by the broker that allows traders to buy or sell stocks for the same-day square-off using less capital than required for a full delivery trade. Zerodha offers intraday margin only through specific order types such as MIS (Margin Intraday Square-off) and CO (Cover Order). Since these positions are not carried overnight, they require less margin compared to delivery or F&O overnight trades.

Intraday Margin in Equity (MIS Orders)

Zerodha provides intraday margin for equity trading through MIS orders. The leverage generally ranges from 3x to 5x, depending on the stock’s volatility, liquidity, and the exchange’s risk rating. This means a trader can take a position worth ₹3–₹5 lakh using ₹1 lakh of capital for certain liquid stocks.

However, leverage varies daily and stock-wise. Stocks with high volatility or low liquidity may offer minimal or no margin at all. Zerodha’s margin policies prioritize safety and risk management, so scrips that fall under risky categories are excluded from MIS leverage.

All MIS trades are auto-squared off by Zerodha around 3:20 PM, ensuring they do not remain open for the next trading day.

Cover Order (CO) Intraday Margin

Zerodha also offers intraday margin through Cover Orders. In this order type, the trader must mandatorily place a stop-loss, which helps reduce potential losses. Because of the built-in stop-loss, CO orders sometimes offer slightly better margin than MIS orders. However, CO availability depends on the stock and market conditions.

Bracket Orders (BO) previously offered even more leverage, but they are currently disabled for equity due to regulatory changes.

Intraday Margin for Futures & Options

In the F&O segment, intraday margin is determined by SPAN + Exposure margin. Zerodha does not provide additional leverage beyond SEBI's rules, even for intraday trades. But there are some advantages:

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  Hedged strategies such as spreads or straddles significantly reduce margin.

  
  


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  Buying options requires only the premium amount.

  
  


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  Selling options requires higher margin because of unlimited risk.

  
  

Even for intraday F&O, margin requirements do not change because of peak margin rules, which standardize leverage across all brokers.

Intraday Margin in Commodity and Currency

For MCX commodities and currency derivatives, intraday margin also follows exchange-mandated rules. Commodity intraday margins fluctuate more because contract volatility changes frequently.

Why Zerodha’s Intraday Margin Is Considered Safe

Zerodha’s approach focuses on giving sufficient leverage while avoiding excessive risk. The peak margin system ensures traders don’t rely on unsustainable leverage, protecting them from sudden market moves and heavy losses.

Conclusion

intraday margin zerodha is structured, transparent, and compliant with SEBI regulations. Whether you’re trading stocks, futures, options, or commodities, understanding how intraday margin works can improve your trading strategy, risk control, and overall confidence. Though leverage is lower compared to past years, it ensures disciplined and safer intraday trading for all types of traders.