Margin Formula:
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Definition: This calculator estimates the margin required for equity trading on Zerodha platform based on trade value and margin percentage.
Purpose: It helps traders understand how much capital they need to maintain in their account for specific equity trades.
The calculator uses the formula:
Where:
Explanation: The trade value is multiplied by the margin percentage (divided by 100) to calculate the required margin.
Details: Proper margin calculation helps traders manage their capital efficiently and avoid margin calls or forced liquidation.
Tips: Enter the trade value, margin percentage (default 20% for Zerodha equity intraday), and select currency. All values must be > 0.
Q1: What is typical margin percentage for Zerodha equity?
A: Zerodha typically charges 20% margin for equity intraday trades and 50-100% for delivery trades.
Q2: Does this include brokerage and other charges?
A: No, this calculates only the margin requirement. Brokerage, taxes, and other charges are additional.
Q3: When would margin requirements change?
A: Margin requirements can change based on market volatility, stock-specific risks, or SEBI regulations.
Q4: How is margin different for F&O trades?
A: F&O margins use SPAN margin system which is more complex than equity margin calculation.
Q5: Can I use leverage beyond the margin?
A: No, exceeding your available margin may lead to position squaring off by the broker.