1. What is FNO Margin Calculator for Zerodha?

Definition: This calculator determines the margin required for Futures and Options (FNO) trading on Zerodha platform.

Purpose: It helps traders understand the capital required to enter FNO positions based on contract value and margin percentage.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Margin — Required margin amount (₹)
• Contract Value — Total value of the FNO contract (₹)
• Margin Percentage — Brokerage margin requirement (%)

Explanation: The contract value is multiplied by the margin percentage to determine the capital needed to hold the position.

3. Importance of Margin Calculation

Details: Proper margin calculation helps traders manage risk, avoid margin calls, and plan their capital allocation effectively.

4. Using the Calculator

Tips: Enter the contract value in rupees and margin percentage (as provided by Zerodha). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is contract value in FNO trading?
A: Contract value is the total value of the position, calculated as (Lot Size × Price of the underlying asset).

Q2: How does Zerodha determine margin percentage?
A: Zerodha sets margin requirements based on SEBI regulations, volatility, and risk parameters for each instrument.

Q3: Is margin same for all FNO contracts?
A: No, margin varies by instrument type (index/stock futures/options), volatility, and market conditions.

Q4: Does this include SPAN margin?
A: This calculator shows basic margin. Zerodha uses SPAN+Exposure margin which is more complex.

Q5: Where can I find exact margin requirements?
A: Check Zerodha's margin calculator or Kite platform for precise margin details before trading.