1. What is Zerodha Margin Calculator for Futures?

Definition: This calculator estimates the margin required for trading futures contracts on Zerodha platform based on lot size, price, and margin rate.

Purpose: It helps traders determine the capital required to enter futures positions while considering exchange margin requirements.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Margin — Required margin amount (currency)
• Lot Size — Contract units (units)
• Price — Current price per unit (currency/unit)
• Margin Rate — Brokerage margin percentage (%)

Explanation: The lot size multiplied by price gives the contract value, which is then multiplied by the margin rate to determine required capital.

3. Importance of Margin Calculation

Details: Proper margin calculation ensures traders maintain sufficient funds in their account to cover position requirements and avoid margin calls.

4. Using the Calculator

Tips: Enter the contract lot size, current price per unit, and margin rate (default 15%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical margin rate for futures?
A: Zerodha typically charges 10-20% margin for futures contracts, depending on volatility.

Q2: Does this include SPAN margin?
A: No, this is a basic calculator. Actual Zerodha margin includes SPAN and exposure margins.

Q3: Where can I find exact lot sizes?
A: Check Zerodha's contract notes or the exchange website for each instrument's specifications.

Q4: How often do margin requirements change?
A: Exchanges may revise margins weekly or during periods of high volatility.

Q5: Is this calculator accurate for all futures contracts?
A: It provides a basic estimate. Always verify with Zerodha's official margin calculator before trading.