Zerodha Trading

Zerodha was established in 2010 as a discount broker under the leadership of Mr Nithin Kamath. It is one of the best discount brokers in India, and it is essential to discuss Zerodha Trading to get the hang of this broker.

But before that, we should learn something about the broker. Let’s go!

There are more than 35 Lakh Zerodha active clients and that is why this stockbroker is currently considered one of the best ones in India. It was the first discount broking company. Further, it has the highest number of active retail clients.

It is a SEBI registered stockbroker and is a depository participant with CDSL (Central Depository Services Limited). It is a member of many stock exchanges – NSE (National Stock Exchange), BSE (Bombay Stock Exchange), and MCX (Multi Commodity Exchange).

With this primary information, we should commence the discussion with the Zerodha Trading review.

Zerodha Trading Review

Zerodha facilitates trading in multiple financial segments like equity, currency, derivatives, IPO, Mutual Funds, commodity, and Government Securities. The broker is well known for its services in the discount broking industry.

You can clear your doubts and queries around Is Zerodha Safe here and then make a decision accordingly. You can use a range of Zerodha trading platforms to perform stock market-related transactions.

Since the broker is a member of the two most significant stock exchanges, NSE and BSE, it opens up trading in various financial securities. Moreover, it is also a member of MCX, which adds Commodity trading to its list.

Let’s discuss the various financial instruments traded with Zerodha.

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Zerodha Options Trading

The first up in this list is Zerodha Options trading. You have the opportunity to explore the world of derivatives with the help of a Zerodha trading account.

In simple terms, you cannot trade in options directly, firstly you need to activate option trading in Zerodha.

Post this, choose the scrip or stock by analyzing its strike price, and reading the Zerodha option chain. 

Other than this there is other information like calculated Open interest and lot size etc that gives you a clear picture of how much you can earn by trading in the particular stock. Once you execute the option trade, you can view the detail of amount blocked as a used margin in Zerodha under the Funds category. 

The Zerodha Options charges are also economical.

 

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Zerodha Commodity Trading

The facility of commodity trading is available with Zerodha as it is a member of MCX and NCDEX. You can trade in many commodities like agri commodities, non-agri commodities, spices, precious metals, cereals, etc. 

The technologically advanced trading platforms provide them with a fast portal to trade effectively. You can open a Zerodha Commodity account to trade in this segment.

To buy commodities in Zerodha, log in to the Zerodha trading platform and choose the commodity in which you want to trade. 

Select the order type like you want to execute day trading, or trade-in the derivatives segment. 

Post this select the order type and execute a trade to reap the maximum profit out of it. 

Also, here it is important to note that the commodity trading time in Zerodha generally differs from other trading segments, and hence it is important to know the market hours to execute the trade.

Crude Oil Trading in Zerodha

One of the famous commodities to trade, crude oil trading that offers many benefits to traders and so here is the separate information on how you can trade in crude oil using the Zerodha platform.

With the Zerodha commodity account, you can trade in 10,000 barrels with a lot size of 100 barrels that can be traded in the futures segment.

Other than this, if you are selling crude oil then you need to maintain a specific margin in your trading account to avoid or cushion the losses.

So ready to trade, just open the account, log in to the trading app and follow the steps:

Search for Crude Oil with the settlement day in the Futures segment. 

• Click on Buy/Sell button.
• Enter the number of barrels you want to trade.
• Maintain the required margin in the trading account.
• Click on Confirm button.
• Your order for crude oil is placed.

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Zerodha Intraday Trading

It is no surprise if you guess what will be discussed in this section. As the name suggests, intraday trading is a trading style where financial security is bought and sold in one trading session, i.e., one day.

Trading at the right time is the main ingredient of success in this style. The incredibly swift trading platforms provided by Zerodha are of massive help while executing the Intraday trades.

Since intraday trading is risky, here the broker offers you multiple ways to minimize losses. For this, you can select any of the order types like Stop loss, Bracket order or cover order. 

Using them in a proficient way not only shields you from market volatility but also increases the chance to make the right profit in a limited time period. 

Above all, Zerodha intraday charges are also less and are equal to 0.03% or ₹20 whichever is lower. This helps a trader in placing multiple trades and in maximizing their profit.

Short Selling in Zerodha

Now, this is the kind of intraday trading where the traders earn money from the falling market. Using the Zerodha Kite app you can simply sell the shares trending downwards. Now, here you can trade even if those shares are not in your demat account.

You just have to place a sell order using Zerodha app and later square off your position by placing a buy order. Since no credit or debit of shares takes place intraday, hence you can earn a profit from the price difference in the share price.

If you are a beginner and wondering how to short-sell in the Zerodha app, then to help you with the process, you simply has to add a share to the watchlist, click on sell, fill in details, and execute the trade.

Later to square off your position, you have to click on Position, select the share, click on Buy and execute the order.

If the price of a share goes down during trading hours, then you can earn a profit from a short sell in Zerodha.

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Zerodha Currency Trading

Zerodha Forex Trading is another name for currency trading, which is the exchange market for various currencies. It is a globally decentralized industry or over-the-counter market for the trading of multiple currencies.

Wondering how to trade currency in Zerodha? Well like commodities, you can trade future and options contracts of four different tradeable currencies using Zerodha Kite.

This trading includes buying, selling, or exchanging the currencies at the prices determined by the market due to the demand-supply ratio.

You can reap the benefit of currency trading in futures and options and also can multiply your profit with the Zerodha margin facility. 

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Zerodha Futures Trading

Future trading is to trade in a particular stock at the predetermined price at the future date. This type of trade involves two parties who enter into the contract to trade in a particular commodity or stock at the predetermined date and price. 

Futures trading can help you in making a good profit but involves a high risk of losing money at the same time. In simple terms, it is a zero-sum game in which either of the two parties suffers a loss. 

Trading in the derivatives segment is confusing for many and fun for a few. The clients of Zerodha can trade and invest in the futures segment and avail the margin facility of up to 3 to 4 times.

This margin percentage is extended irrespective of the type of futures (commodity, currency, equity) you trade. Furthermore, Zerodha futures charges must be known in advance to avoid any confusion later.

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Zerodha Equity Trading

Equity is the financial segment that is traded in high volumes. It is conducted for the companies listed on the various stock exchanges of India like NSE, BSE, etc. Based on the time equity is held, the two types of trading are Intraday and Delivery.

For intraday traders, the margin facility is up to 12.5x, and for delivery traders, the margin is 1x, although the Zerodha Options Selling margin is much different.

To trade in equity segment you need to place order in the market hours, however to take an early entry or exit you can place pre market order in Zerodha between 9:00 AM to 9:08 AM.

Now let’s have a look at the Zerodha equity charges.

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Zerodha Trading Online

Zerodha trading online is possible with various trading platforms like Zerodha Kite, Zerodha Coin, etc. Zerodha clients can access these platforms on a mobile phone, web browser, or desktop.

The user interface for these portals is developed for multiple devices to enhance the user experience. Some standard features of these platforms are as follows:

• Light and very responsive platform.
• Execute millions of trade requests every day.
• Allows millisecond order placements.
• Has advanced order types like bracket, cover, etc.
• Provides exclusive insight into Level 3 data or 20 market depth.
• Has six exclusive charts with more than 100 indicators.
• Create and deploy personalized strategies.
• Flexible to create and stop trades.
• Tutorials for the applications.
• Quick fund transfer and payments.

The multiple accessibility points increase the preferability of a platform for a user. This factor contributes to customer satisfaction majorly.

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Zerodha Trading App

Trading Apps are the most crucial link in the process of trading as they enable a trader or investor to place and execute secure orders. The technical aspects of various trading platforms may vary, but the end goal is to simplify the trading process for the trader or investor.

Zerodha is no different in this regard as it offers multiple mobile applications to its clients for quick and easy transactions. Let’s discuss them one by one in brief.

• Zerodha Kite

Zerodha is becoming highly popular for its technological advancements in the field of stock market trading. Kite is the primary trading platform by Zerodha; that can be accessed on a mobile phone or web browser.

It is a lightweight application, and the user interface is designed so that it is easy to use. Currently, this application has more than 8,00,000 active clients and processes over 200 million trade requests every day.

The application is accessible in multiple languages, has extensive charting options, and has a wide range of data point

• Zerodha Coin

It is a mobile application that facilitates direct investment in mutual funds. Generally, you can’t invest in a mutual fund directly. There must be a middleman or agent to do it for you.

With the introduction of this application, you can invest directly and save the commission charges of an agent. Thus, increasing your profit margin at the end of the investment period.

Further, to fasten the trading process in this app, a quick fund transfer has been facilitated by providing multiple ways to add or withdraw money. 

• Zerodha Streak

Streak is one of the technological collaborations by Zerodha. It is an Algo trading and strategy platform that facilitates the client to trade at a higher frequency and speed.

It is humanly impossible to achieve this level of speed and accuracy.

It allows you to create strategies, backtest them, and then deploy them for trading in the stock market. While setting these strategies, you get to choose from various indicators, tools, and chart patterns.

In this application, you create an algorithm for trading in the stock market. Once this algorithm is deployed, it executes trades at the set conditions with no human emotional interference.

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Zerodha Trading Tips

Before you enter the market with your hard-earned money, you should be aware of a few things and work a little to get hold of some essential points. These are:

• Stock Market Education

It is necessary to understand the basics of the stock market to avoid any confusion while trading. An educated trader or investor is sure to reduce his losses by making smart decisions.

This tip is the most important and underrated for a new entrant in the stock market.

• Keeping Realistic Expectations

Many people, when entering the stock market, build a happy bubble of 100% success ratio. They paint a picture of a heap of money and avoid facing reality irrespective of their stock market position.

One has to keep their feet on the ground and think realistically.

• Trade According to your Financial Capability

You should vary your trading according to your risk appetite. Further, you should have a budget for trading and investment. Overspending or over-investing can hurt you and your investment plans in the long run.

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Zerodha Virtual Trading

Ever wished to trade without real money but have a hands-on experience of the same?

Well, this wish turns into a reality with Zerodha Virtual Trading. But what is virtual trading? Virtual trading is a process wherein stock exchanges extend the opportunity to trade in the market as a mock session. It is also known as Paper Trading.

This session is conducted in a simulated environment on a Saturday, once a month. Zerodha is among the few brokers that offer this facility on their trading platform.

It helps you to understand how to place an order, execute it, and much more to ease the process at large.

These simulated trading sessions are conducted to test new development by the brokers and exchanges. Also, it helps in having contingency drills.

If you wish to be a part of these sessions, log on to the relevant stock exchange’s official website and look for the calendar.

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Zerodha Trading Account

The account required to buy and sell various financial securities is different from the account where they are stored after the transaction.

This account is known as the Zerodha trading account. You can learn the difference between demat and trading account here.

It is used for executing all the transactions related to a trade or investment in the stock market. If you are an intraday trader, a trading account will suffice for you as you don’t have to store the financial securities.

Generally, no broker extends the facility to open only a trading account, but you can reach out to the concerned executive in some cases.

To facilitate the NRIs, Zerodha has a particular trading account. Let’s talk about it in detail.

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Zerodha NRI Trading Account

With the green flag to trade in the Indian Stock Market, NRIs have been looking for a suitable NRI trading account. Zerodha extends this service. Zerodha NRI trading account is one of the fantastic products by discount stockbrokers.

The account has many benefits, like making the trading process entirely online for an NRI. It has a wide range of trading platforms and products to choose from, reasonable brokerage charges, and regular innovative solutions for customer’s delight.

An NRI can open this account for a nominal fee of ₹300. The only major setback of this account is the inability to trade as an intraday trader.

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Zerodha Trading Login

Zerodha trading login has been revolutionized by the stockbroker in the recent past. With the proper integration of the various trading platforms, Zerodha has successfully made the login process streamlined.

Now, all you need is one unique set of credentials, and you can log into any Zerodha platform. Zerodha has multiple platforms like:

• Zerodha Streak
• Zerodha Coin
• Zerodha Console
• Zerodha Kite
• Zerodha Kite Connect API
• Zerodha Sentinel
• Zerodha Smallcase
• Zerodha GoldenPi
• Sensibull Zerodha

All these platforms have been integrated for a better customer experience.

To receive the login credentials, you must open a demat account with Zerodha, and they will be mailed to you on the registered email ID after the opening process is concluded.

This uniformity also eases the stress of remembering multiple passwords.

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Zerodha Trading Charges

“There are no free lunches in life” is a very appropriate saying to commence the discussion of Zerodha Trading Charges. For every service you avail of, you end up paying for it, directly or indirectly.

These charges are levied at every step of your trading procedure. Majorly, two of them vary from broker to broker, and the rest are fixed by the government or the respective regulatory body. These two are:

• Trading Account Charges
• Brokerage Charges

Without any delay, below is a brief about these two.

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Zerodha Trading Account Charges

Since the broker opens a 2-in-1 account, the Zerodha trading account charges are the same as that of a demat account. You can open an account with Zerodha for ₹200.

Although, if you wish to initiate this process offline, you’ll be charged ₹300 extra.

In addition to this, you also have to pay an AMC (Annual Maintenance Charges) of ₹300 + GST annually. This amount is payable in the form of quarterly instalments.

These charges have been tabulated below for a better understanding:

 

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Zerodha Trading Brokerage Charges

For each transaction, buy or sell, is charged a small amount as a brokerage by all stockbrokers. Zerodha is among the few brokers that charge zero brokerage charge for equity delivery.

For intraday trading, futures, and options, this broker charges 0.03% or ₹20 per executed order, whichever is lower. Exceptionally, a flat ₹20 per executed order is charged for equity options.

For an easier understanding, the Zerodha trading brokerage charges have been tabulated below:

 

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The following example can help you understand the brokerage calculation.

Suppose you trade in commodity options for one lakh. Now, 0.03% of the said amount is ₹30, which is more than ₹20. Thus, the trader will have to pay only ₹20.

On the other hand, if the trader trades in equity futures for ₹50,000. He will calculate 0.03% of the amount, which is ₹15. So, he’ll have to pay only ₹15 as brokerage charge in this trade.

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Zerodha Trading Margin

Margin is a facility extended to the traders and investors that helps them trade in higher quantities in the market. A beginner or newbie in the stock market can understand the concept of margin by drawing parallels with a bank loan.

Zerodha Trading Margin is a provision that allows the stockbroker’s customers to avail leverage for buying more stocks than their budget or financial capability.

The percentages for every financial segment and trading style are different.

In the case of futures, you get 3 to 4 times margin; in options, you receive 2 to 3 times of margin; for equity delivery, it is 1x, and for equity intraday, it is 12.5x.

They are mentioned in the form of a table below:

 

These amounts lent are short-term loans and are required to be paid back as per the guidelines set by the regulatory body and terms & conditions finalized by the stockbroker.

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Zerodha Trading Limit

Every broker sets a limit for trading. This limit is set at different numbers for different stocks and also for financial segments being traded. Although it is limited by name, it facilitates the trader to trade quantitatively more in less.

Let’s understand this by an example.

If you are an intraday trader in the equity segment and planning on trading tomorrow but lack enough funds to execute the trade, you can receive money up to 12.5 times your amount. Suppose you have ₹50,000, you can trade up to ₹6,25,000.

This amount is the Zerodha trading limit for intraday traders in the equity segment.

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Zerodha Trading Customer Care

Having the opportunity to reach out to customer care in case of a query, doubt, or confusion is the best for a customer. Zerodha trading customer care can be contacted in various ways. They are:

• Email
• Zerodha Customer Care
• Write to the Head Office
• Branches and Partner Offices
• Raise a ticket on the website
• Social Media

The relevant information is tabulated below:

 

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Zerodha Trading Holidays

There are many days when the stock exchanges are closed because of national holidays and a few other occasions. Generally, the stock market is inoperative on weekends, i.e., Saturdays and Sundays.

The government gazette holidays are included, like Independence Day, Republic Day, Maharashtra Day, Gandhi Jayanti, Good Friday.

Additionally, the market is also closed on several religious days like Diwali, Muharram, Christmas, Holi, Mahashivratri, Mahavir Jayanti, and many such festivals.

The exchange announces a list of these holidays at the beginning of every year, and the same list is applicable for stockbrokers. Further, the Muhurat trading schedule is released in a separate circular around the occasion of Diwali.

The distinguishing factor here is the different holidays’ list for every stock exchange. Moreover, there are some special holidays in case of a few exchanges. They are like clearing and settlement and other such holidays.

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Is Zerodha Good For Trading?

An important question before an individual initiates the process of trading with the broker is – Is Zerodha good for trading?

To answer this question, we’d like to highlight the fact that Zerodha provides multiple trading platforms that are secure and quick in executing orders.

A trading platform that is light in weight, and is technologically advanced is highly preferred by any trader or investor. Moreover, the broker charges minimal brokerage charges and is among the top stockbrokers of India.

This fact itself speaks for the authenticity and service of the broker. Since it has multiple memberships of stock exchanges, it extends the service of trading in various financial segments like equity, commodity, currency, and others.

The range of trading platforms is from mobile applications to web-based and desktop applications. There are different applications for some financial instruments and you also get access to its back office.

The customer care by the broker is very responsive and has a very less turnaround time as compared to its competitors.

The broker’s platform also facilitates virtual trading or paper trading conducted by the stock exchange every month.

In addition to all this, the Zerodha NRI trading account is offered to the NRIs wishing to trade in the Indian Stock Market with the least paperwork and online access to their trades or investments.

You will be happy to know that the broker charges no fee to open a demat and trading account and levies a small amount as AMC. Zerodha also extends margin facility which enables its customers to trade more quantitatively.

Lastly, the trading holidays at Zerodha coincide with those announced by the stock exchanges every year.

We hope this detailed information about Zerodha trading has helped in clearing the air of doubt.

Happy Trading!

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