FAQs
Yes, Zerodha provide margins on Liquid mutual funds. To learn more, see How to pledge mutual fund investments to get collateral margins?
Can liquid bees be used as margin for trading? ›
SEBI mandates 50% of the margin required (when trading futures and selling options) to be maintained in cash. Liquidbees collateral margins are considered equivalent to cash for this purpose.
How can I get margin funding in Zerodha? ›
How to pledge securities to get collateral margin?
- Click on Portfolio and then on Holdings.
- Click on Options.
- Click on Pledge for margin.
- Agree to the terms of service for pledging.
- Enter the Quantity to be pledged.
- Click on Submit.
How much margin does Zerodha provide? ›
Zerodha provides up to 5 times (20% margin) leverage for intraday using Margin intraday square off (MIS) and Cover Order (CO) for equity. With ₹1 lakh, stocks can be bought or sold for intraday up to ₹5 lakhs.
What is the return of liquid bees in Zerodha? ›
Historically, these funds have generated predominantly positive returns from 4% to 10% annually. The actual return is dependent on the prevailing demand for money at the time of THE investment in the fund.
Are liquid BeES tax free? ›
Dividends on Liquid ETFs and Liquid BeES are taxed as per the income tax slab rate of the investor. When the units are sold, the amount on which tax is already paid is treated as the cost of acquisition and the gains are then taxed under income from capital gains.
Why is liquid BeES always 1000? ›
Yes, the value of liquid bees remains constant at around 1000. Dividends are daily, and all of these dividends are added together and credited to you once a month. It is credited to you as new units and not as money. So if you had bought 100 units at 1000, (Rs 1lks), held it for 1 year.
What is 80% margin rule Zerodha? ›
When selling holdings, 80% of the selling credit can be used for new trades. If this credit is used for intraday trade and the holdings are bought back, a margin shortfall can occur if there isn't enough margin separately available for the intraday or F&O trades.
How much does Zerodha charge for leverage? ›
= 2.3%. So, the higher the leverage, the higher is the risk.
How much margin is blocked in Zerodha? ›
The delivery margin is blocked when you sell securities (20% of the value of stocks sold) from your demat or T1 holdings. As per SEBI's new peak margin norms, only 80% of credit from selling your holdings will be available for new trades.
Penalty percentage of the shortfall
If the margin shortfall continues for more than 3 consecutive days, a penalty of 5% is applied for each subsequent instance of the margin shortfall. If there are more than 5 instances of shortfall in a calendar month, a penalty of 5% for every further instance of the shortfall.
Which broker gives highest margin in India? ›
Highest Intraday Margin Brokers in India:
Stock Broker | Brokerage | Exposure |
---|
SAS Online | Rs 9/Executed Order | Up to 20 times |
Zerodha | Rs 20/Executed Order | Upto 20 times |
Upstox | Rs 20/Executed Order | Upto 20 times |
Tradejini | Rs 20/Executed Order | Upto 20 times |
6 more rowsJun 10, 2023
What are the hidden charges in Zerodha? ›
Equity
Zerodha charges | Equity delivery |
---|
Brokerage | Zero Brokerage |
STT/CTT | 0.1% on buy & sell |
Transaction charges | NSE: 0.00325% BSE: 0.00375% |
GST | 18% on (brokerage + SEBI charges + transaction charges) |
2 more rows
Is Liquid BeES worth buying? ›
They can transfer the fund to savings bank account to earn interest. However, there is hassles and transaction cost involved in transferring the money to and from trading and bank account. Investment in liquidbees eliminates the entire hassle and time. Further, it yields better return than the 4% savings account.
Which is the best liquid ETF in India? ›
Returns as on 12 Jan 2023
EXPENSE RATIO Comparison Of Liquid Funds & Liquid ETFs |
---|
Liquid Funds | 0.07-0.31* |
Nippon India ETF NIFTY 1D Rate Liquid BeEs | 0.69 |
DSP NIFTY 1D Rate Liquid ETF | 0.66 |
ICICI Pru S&P BSE Liquid Rate ETF | 0.25 |
2 more rowsJan 19, 2023
What is liquid mutual fund Zerodha? ›
A liquid fund makes investments in debt products which have a maximum maturity of up to 91 days. In simple words, the liquid fund invests in debt obligations, wherein the borrower promises to repay the borrowed money (principal) within 91 days (maturity) of such borrowing.
Is Liquid BeES better than savings account? ›
You can access funds in your Savings Account any time you wish, whereas liquid funds are less accessible. You can get tax benefits on the interest income from Liquid Funds. Savings Account entails no risk, while liquid funds are subject to market risks.
Can we save tax on liquid funds? ›
Taxation on Liquid Funds
Investors earn dividends and capital gains from liquid funds. Investors do not pay any tax on dividend income from mutual funds. In case an investor earns a capital gain by redeeming the units of the fund at a price higher than his or her purchase price- then the capital gains are taxable.
How gains from liquid funds are taxed? ›
The dividends paid out by the debt fund or liquid fund are entirely tax free in the hands of the fund investor. This is an advantage that continues and to that extent it is a better option compared to a pure debt instrument.
Are liquid BeES risky? ›
Liquid Bees is 100% safe as it invests only in Govt.
You can sell LIQUIDBEES anytime during the market hours. As per SEBIs upfront margin requirements, when you sell shares from holdings, you will get 80% of the sell proceeds on the same day.
What is the profit of liquid BeES? ›
2. Returns: Its trailing returns over different time periods are: 5.28% (1yr), 3.43% (3yr), 3.7% (5yr) and 5.84% (since launch). Whereas, Category returns for the same time duration are: 6.2% (1yr), 4.24% (3yr) and 5.08% (5yr). 3.
Can you have 200% margin? ›
Margins can never be more than 100 percent, but markups can be 200 percent, 500 percent, or 10,000 percent, depending on the price and the total cost of the offer. The higher your price and the lower your cost, the higher your markup.
Is 20% margin safe? ›
Generally, the majority of value investors will NOT invest in a security unless the MOS is calculated to be around ~20-30%.
Is 20% margin good? ›
Net profit margins vary by industry but according to the Corporate Finance Institute, 20% is considered good, 10% average or standard, and 5% is considered low or poor. Good profit margins allow companies to cover their costs and generate a return on their investment.
Can I withdraw 1 crore from Zerodha account? ›
There is no upper limit to the amount of money that can be withdrawn from the trading account. Withdrawal limit is subject to availability of withdrawable balance in the trading account. To learn more, see What is the withdrawable balance?
Who owns Zerodha? ›
It was started by Nithin Kamath in 2010, which was later joined by his brother Nikhil Kamath. With more than 12 million customers, Zerodha was estimated at US $2 billion (INR 16,415 crores) in 2022. India's first discount brokerage service, Zerodha allows users a unified family portfolio.
How to avoid AMC charges in Zerodha? ›
AMC charges are charged only on a demat account. As far as you are using Zerodha Kite to do trade, i.e. open only a trading account or Zerodha commodity account then you don't have to pay any AMC fees and thus can avoid these charges.
What is the maximum lot size in Zerodha? ›
What does the error "Maximum quantity per order for Equity is 1,00,000" mean? The maximum quantity allowed per order is 100000 as per Zerodha's risk management policy. Orders that exceed these limits are rejected.
Does Zerodha charge interest on margin? ›
When using collateral margin to trade F&O, the shareholder must have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha. See Will Zerodha provide margin on liquid funds?
NSE/BSE Equity: Zerodha has a policy of giving up to 20 times exposure on a broad spectrum of stocks; no margin is given for delivery trades. The client needs to have enough money in his trading account to take delivery of shares failing which Zerodha can cut the position.
What happens if you can't pay back margin? ›
A failure to promptly meet these demands, known as a margin call, can result in the broker selling off the investor's positions without warning as well as charging any applicable commissions, fees, and interest.
Is 10% margin safe? ›
Portfolio Margin ETF Distance To Margin Call
A modest 10% to 20% leverage rate is not dangerous for most people, even factoring in that maintenance requirement can rise during times of peak volatility.
What is a safe amount of margin to use? ›
Margin capacity is calculated based on a percentage of the collateralized assets' fair market value. A general rule-of-thumb for the amount of margin capacity is to use 50% as the loan-to-value ratio.
Is Zerodha 100% safe? ›
The stockbrokers are just the agents of depositories. Your stocks are actually held by central depositories and not by the depository participants (brokers). Therefore, even if something didn't work out well with Zerodha, your stocks in the demat account are safely intact with CDSL.
What happens to unused funds in Zerodha? ›
Stockbrokers are required to transfer unused funds back to the client's bank account as per SEBI regulations.
How much does Zerodha charge per month? ›
Zerodha Transaction Charges 2023
Segment | Transaction Fee |
---|
Equity Delivery | NSE Rs 325 per Cr (0.00325%) | BSE Rs 375 per Cr (0.00375%) (each side) |
Equity Intraday | NSE Rs 325 per Cr (0.00325%) | BSE Rs 375 per Cr (0.00375%) (sell side) |
Equity Futures | NSE Rs 190 per Cr (0.0019%) |
4 more rows
What exchanges allow margin trading? ›
5 Best Platform for Crypto Margin Trading in the USA
- Binance Margin Trading. Bitcoin margin trading at Binance is spot trading with borrowed funds and increased risks. ...
- Bityard Margin Trading. ...
- Kraken Margin Trading. ...
- BitMEX Margin Trading. ...
- Poloniex Margin Trading.
Is liquid BeES considered as cash component? ›
These securities will be considered as cash component when trading in F&O Segment. For Instance, Mr. X has Liquidbees of ₹10 Lakhs in his holdings and wishes to trade in the Index Futures.
Can I use mutual funds for margin trading? ›
Lastly, margin funding works best when the churn is rapid and the yield can substantially better the proportionate cost of margin funding. That cannot happen in mutual funds, which is why margin funding is not available for the purchase of mutual funds.
Many users may have limited cash margins despite having stocks, ETFs, and mutual funds in their holdings, which can lead to missed trading opportunities. To avoid this, they can pledge their shares/ETFs as collateral margins, after a % deduction called a haircut.
Which broker is best for margin trading? ›
Highest Intraday Margin Brokers in India:
Stock Broker | Brokerage | Exposure |
---|
SAS Online | Rs 9/Executed Order | Up to 20 times |
Zerodha | Rs 20/Executed Order | Upto 20 times |
Upstox | Rs 20/Executed Order | Upto 20 times |
Tradejini | Rs 20/Executed Order | Upto 20 times |
6 more rowsJun 10, 2023
Can US citizens margin trade on Kraken? ›
For U.S. clients to be eligible for margin trading on Kraken, they will need to self-certify as an Eligible Contract Participant (ECP) as defined under U.S. law (Section 1a(18) of the Commodity Exchange Act).
Which exchanges offer 100x leverage? ›
OKEx is a leading cryptocurrency exchange that offers leverage trading on many cryptocurrencies, including Bitcoin, Ethereum, and others. The platform offers up to 100x leverage on some assets and is known for its advanced trading features and security measures.
Are liquid bees risky? ›
Liquid Bees is 100% safe as it invests only in Govt.
Is Liquid Bees worth buying? ›
They can transfer the fund to savings bank account to earn interest. However, there is hassles and transaction cost involved in transferring the money to and from trading and bank account. Investment in liquidbees eliminates the entire hassle and time. Further, it yields better return than the 4% savings account.
Is Liquid Bees better than savings account? ›
You can access funds in your Savings Account any time you wish, whereas liquid funds are less accessible. You can get tax benefits on the interest income from Liquid Funds. Savings Account entails no risk, while liquid funds are subject to market risks.
Does Zerodha offer margin trading? ›
Zerodha provides margins on holdings of stocks, ETFs, and mutual funds. This procedure is referred to as pledging. The margin obtained can be utilized for intraday equity trading, long and short futures, and writing options (equity and currency F&O).
What is the cost of pledging in Zerodha? ›
The cost of pledging is ₹30 + GST per instrument, irrespective of the quantity pledged. There are no charges for unpledging.
Does Zerodha charge for intraday margin? ›
Flat ₹ 20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades.