How to Activate F&O in Zerodha

​​Zerodha takes up to 48 hours to activate the F&O segment upon completing the activation process. 

You don’t need to pay any charges to activate the F&O (equity & currency) segment. But if you want to activate the commodity segment then you would need to Rs 100 fee to open the commodity account. 

You will not be charged for enabling the commodity segment in case you have paid for the commodity segment while account opening but have not enabled the same or signed up for the commodity segment.

In this blog post, I will guide you through the steps and requirements to activate F&O trading in Zerodha.

How to Activate F&O in Zerodha

Step 1: Log in to Console.

Step 2: Click on the “Account” tab in the top menu

Step 3: Click on the “Segments” option in the left column. You will see the list of all active & non-active segments 

Step 4: Click on “Active the NSE- BSE Futures & Options”. If you want to trade in currency F&O, then activate those options as well. Click on “Continue”. 

You can check the list of best trading apps to trade in different segments including equity, currency, commodity and F&O.

Step 5: From the dropdown menu, select the income range. 

Step 6: You need to provide your income details. You will see 2 options, “Use my holdings as income proof” or “Submit valid income proof” with Zerodha. 

Click on the option “Use my holding as income proof” If you already have an existing portfolio with Zerodha. This is an easier way to activate the F&O. 

Otherwise, attach the income proof. Provide the password under the “File password” tab if the file is password-protected. 

Go through our comparison of Angel One vs Zerodha to know about the brokerage charges for F&O trading.

You can attach any one of the following documents for valid income proof documents, 

• 6 months bank statement in the name of Zerodha account holder with an average balance of more than Rs 10,000. 
• The latest salary slip with gross monthly income exceeding Rs 15,000.
• ITR acknowledgment with gross annual income exceeding Rs 1,20,000.
• Form 16 with gross annual income exceeding Rs 1,20,000.
• Certificate of net worth more than Rs 10,00,000.
• Statement of Demat holdings with current holdings value exceeding Rs10,000.

Step 7: Click on “Continue”. You will see a pop-up message “Your segment modification request has been submitted”. ​​It may take up to 48 hours to activate the F&O segment if everything is in place.

You may like to read – best broker for option trading in India

You can check out the whole step-by-step process in the video below –

Once you have activated the F&O segment, you can get your updated account details in the Zerodha CMR copy. Learn more on how to get the Zerodha CMR copy here.

How to Activate F&O for NRIs 

• Download the ‘Segment addition form’ 
• Take the form print out
• Fill in all the required details and sign it 
• Couriner the form along with your proof of income mentioned above to Zerodha’s head office at 

Zerodha,

153/154, 4th Cross, J.P Nagar 4th Phase,

Opp. Clarence Public School,

Bengaluru – 560078

You can earn 300 Reward Points + 10% brokerage cashback by referring Zerodha demat account to your friends. You would like to check the list of refer and earn demat account in India.

How to Activate the Commodity Segment in Zerodha

Step 1: Log in to Console.

Step 2: Click on the account tab in the top bar 

Step 3: Click on the Segments option in the left column. You will see the list of all active & non-active segments. 

Step 4: Active the NSE- BSE Futures & Options. If you want to trade in currency F&O, then activate those options as well. Click on Continue 

You can go through our comparison of Zerodha vs Upstox to know about the brokerage charges to trade in commodity F&O segments.

Step 5: From the dropdown, select the income range, trading experience & commodity trade classification.

Step 6: You need to provide your income details. You will see 2 options, “Use my holdings as income proof” or “Submit valid income proof with Zerodha”. 

Click on the option “Use my holding as income proof” If you already have an existing portfolio with Zerodha. This is an easier way to activate the F&O. 

Otherwise, attach the income proof. Provide the password under the “File password” tab if the file is password-protected. 

You can attach any one of the following documents for valid income proof documents, 

• 6 months bank statement in the name of Zerodha account holder with an average balance of more than Rs10,000. 
• The latest salary slip with gross monthly income exceeding Rs 15,000.
• ITR acknowledgment with gross annual income exceeding Rs 1,20,000.
• Form 16 with gross annual income exceeding Rs 1,20,000.
• Certificate of net worth more than Rs 10,00,000.
• Statement of Demat holdings with current holdings value exceeding Rs 10,000.

Check out – how to invest 1 crore to get regular monthly income in India

Step 7: Click on “Continue”. You’ll be redirected to e-sign the document via Digio and NSDL

Step 8: Click on “Proceed to e-sign”, then “Sign now”.

Step 9: On the NSDL page, tick the “I authorized……. option, then enter your Aadhaar number (linked to your mobile number) and click on “send OTP”

Step 10: Validate the OTP. Your commodity account will be activated within 48 hours, post the OTP verification.

Note: You can activate the F&O and commodity account in one go as well. Zerodha charges you Rs 100 (as a ledger debit) to enable the commodity segment if you opt to enable the same.

You can check out a quick video for a better understanding –

Open Commodity Account Offline in Zerodha 

If your mobile number is not linked with your Aadhaar or you are an NRI then you have to open the commodity account offline.

• Download the ‘Commodity trading ‘ form, 
• Take the form print it
• Fill in all the required details and sign it 
• Couriner the form along with your proof of income mentioned above to Zerodha at 

Zerodha,

153/154, 4th Cross, J.P Nagar 4th Phase,

Opp. Clarence Public School,

Bengaluru – 560078

You will be charged Rs 200/- for opening your commodity account offline. The commodity segment will be activated by Zerodha within 48 hours of receiving the form.

You can also check the list of free demat account openings with zero AMC charges.

Margin Requirements for F&O Trading in Zerodha

In F&O trading, margin requirements vary depending on the type of contract and the volatility of the underlying asset.

For example, let’s say you want to trade in Nifty options. The margin required to nifty 19000 call would be Rs 50,000, whereas to buy the same call would be Rs 250. You need to have at least the required margin in your trading account to enter into any trade.

You can pledge your existing holdings to use the margin for F&O. Check out our complete guide to pledge shares in Zerodha to resolve all your queries about pledging and unpledging of shares.

How to Deactivate F&O Trading in Zerodha

If at any point traders wish to deactivate F&O trading in their Zerodha account, they can easily do so by following these steps:

• Step 1: Log in to Zerodha Console 
• Step 2: Go to the Accounts tab 
• Step 3: Click on the segments 
• Step 4: Choose the segments you wish to disable and confirm; 

Zerodha will check if you have any open orders or positions. The segment will be deactivated within 5 minutes in the absence of any open orders or positions.

You can re-enable the segments after 12 hours using the same option.

If you want to learn intraday trading, I would suggest starting investing with Rs 5000 as an initial investment. 

FAQs