1. What is a Zerodha Derivative Margin Calculator?

Definition: This calculator estimates the margin required for trading derivatives (futures and options) on Zerodha platform.

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

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Margin — Required margin amount (in currency)
• Contract Value — Total value of the derivative contract
• Margin Percentage — Percentage of contract value required as margin

Explanation: The contract value is multiplied by the margin percentage (divided by 100) to calculate the required margin.

3. Importance of Margin Calculation

Details: Proper margin calculation ensures traders maintain sufficient funds in their account to cover potential losses and meet exchange requirements.

4. Using the Calculator

Tips: Enter the contract value of your derivative position and the applicable margin percentage. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find the contract value?
A: Contract value = Lot size × Current market price of the underlying asset.

Q2: How is margin percentage determined?
A: Zerodha provides margin details for each contract, typically ranging from 10-40% depending on volatility.

Q3: Does this include SPAN margin?
A: This is a basic calculator. Zerodha's actual margin includes SPAN and exposure margins - check their platform for exact values.

Q4: Is margin same for futures and options?
A: No, margin requirements differ. Options sellers typically require higher margins than buyers.

Q5: Can I use this for intraday margins?
A: This calculates overnight margins. Intraday margins may be lower - check Zerodha's MIS margins.