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”.
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.
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 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
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
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.
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 will charge 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.
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, go through our how to do intraday trading in Zerodha article to understand the basics of intraday trading.
FAQs
Q1. Can I place an order for F&O trading after market hours?
Yes, you can place an order for F&O trading after market hours. However, the order will be executed only during market hours on the next working day.
Q2. Can I convert a delivery trade into an F&O trade?
No, you cannot convert a delivery trade into an F&O trade or vice versa. You need to place separate orders for these trades.
Q3. Is there any minimum investment required for F&O trading in Zerodha?
There is no minimum investment required for F&O trading in Zerodha. However, you need to maintain the required margin for your trades.
Q4. What is the maximum time limit for holding an F&O position?
The maximum time limit for holding an F&O position is till the expiry of the contract. You need to close the position before the expiry date.
Q5. Can I modify an F&O order after it has been placed?
Yes, you can modify an F&O order after it has been placed. However, the modification needs to be done before the order is executed.
Q6. What is a stop-loss order in F&O trading?
A stop-loss order is an order placed to automatically close an F&O position when the price of the underlying security reaches a certain level. It helps to limit the potential losses in case the market moves against you.
Q7. How can I place a cover order for F&O trading in Zerodha?
You can place a cover order for F&O trading in Zerodha by selecting the cover order option while placing the order. You need to specify the stop-loss price and the target price for the order.
Q8. What is a bracket order in F&O trading?
A bracket order is an order placed to simultaneously enter a position, place a stop-loss order and a target order for the same position. However, Zerodha stopped offering the bracket order option in Kite in 2020 as the bracket orders used to increase volatility.
Q9. Can I trade in F&O without a PAN card?
No, you cannot trade in F&O without a PAN card. It is mandatory to provide your PAN card details for F&O trading.
Q10. Can I trade in F&O using the mobile app?
Yes, you can trade in F&O using the Zerodha mobile app. You need to download the app and log in with your Zerodha account details.
Q11. Is it mandatory to have a demat account for F&O trading in Zerodha?
No, it is not mandatory to have a demat account for F&O trading in Zerodha. However, you need to have a trading account with Zerodha.
Q12. How can I track my F&O trades on Zerodha?
You can track your F&O trades on Zerodha by logging in to your account, going to the orders menu, then clicking on orders history and checking the trade book, order book, and position book.
Q13. Q: What is the minimum margin required for trading F&O contracts in Zerodha?
The minimum margin requirement for trading F&O contracts in Zerodha depends on the underlying asset, contract expiry date, lot size, and other factors. Traders can use the margin calculator tool on the Zerodha website or trading platform to determine the exact margin requirements.
Q14. What happens if I fail to maintain the required margin for my F&O trades?
If you fail to maintain the required margin for your F&O trades, Zerodha may square off your position to cover the margin shortfall. You may also be charged penalty fees for not maintaining the required margin.
Q15. Is it possible to roll over an F&O position in the ban period in Zerodha?
No, it is not possible to roll over an F&O position in the ban period in Zerodha. Traders must square off their positions before the expiry of the contract.
