Zerodha Margin: A Complete 2025

Zerodha, India’s largest retail stockbroker, is well-known for its discount broking model, transparent pricing, and reliable trading platforms. One of the most frequently discussed aspects of Zerodha’s offering is margin—how much leverage traders can get, how it varies across segments, and what rules regulate it. Understanding Zerodha’s margin system is essential for anyone planning to trade intraday, futures and options, or even invest using CNC orders.

What Is Zerodha Margin?

Margin is the leverage or temporary funding a broker provides to enable traders to take larger positions than their available capital. Zerodha offers margin across equity intraday (MIS), futures and options, and currency and commodity segments. Unlike some traditional brokers, Zerodha follows a low-leverage structure because of SEBI’s peak margin rules, which were implemented to reduce risk in the financial markets.

Zerodha Margin for Equity Intraday (MIS)

In the equity cash segment, Zerodha offers MIS (Margin Intraday Square-off) orders that allow traders to take leveraged positions for the day. Typically, the margin ranges from 3x to 5x, depending on the liquidity, volatility, and regulatory requirements of the stock. For highly liquid stocks, traders may get leverage up to 5x, while volatile stocks may offer much lower margin.

All MIS positions are auto-squared off by Zerodha if not closed before the intraday cut-off time, usually between 3:20 PM and 3:25 PM.

CO (Cover Order) and BO (Bracket Order) Margin

Cover Orders allow traders to enter a position with a compulsory stop-loss, which helps manage risk. Because a stop-loss reduces potential losses, Zerodha offers slightly better leverage compared to normal intraday orders. Bracket Orders (BO) were earlier available but are currently disabled for equity due to regulatory rules.

Futures and Options Margin

In F&O, the margin requirement is standardized across brokers due to SEBI’s SPAN + Exposure margin rule. Zerodha does not provide additional leverage beyond what regulations allow. However, traders can benefit from:

• Margin benefits for hedged positions
  For example, holding a long and short position on the same underlying can drastically reduce required margin.

• Short Options vs. Long Options
  Selling options requires a considerable margin because of unlimited risk, while buying options requires only the premium amount.

Zerodha’s dedicated margin calculator helps traders estimate exact margin requirements for any strategy.

Commodity and Currency Margin

Through Zerodha’s subsidiary, Zerodha Commodities, traders can trade MCX futures. Here too, margin follows regulatory guidelines and varies with contract volatility. Currency derivatives also follow SEBI-mandated requirements, with small differences due to market behavior.

Why Zerodha Margin Is Considered Safe

Zerodha is known for prioritizing risk management. The margin policies are designed to protect traders from over-leveraging, which can lead to large losses. Many traders appreciate this stability, especially in volatile markets.

Final Thoughts

Zerodha margin structure is simple, transparent, and compliant with SEBI regulations. While the leverage may seem lower compared to older systems, it ensures safer and more responsible trading. Whether you're an intraday trader, F&O trader, or commodity trader, understanding Zerodha’s margin rules can significantly improve your trading discipline and risk management.