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How to Activate F&O in Zerodha
Once people are familiar with regular trading, they want to know how to activate f&o in Zerodha.
The platform takes around 48 hours to complete the entire activation process. Overall, the F & O segment is different, and you need to learn it properly before starting trading in this section.
But once you have decided to trade, the first question that may come to your mind is how to trade f&o in Zerodha.
Before we proceed, we need to understand what is F&O in Zerodha. Future options have the benefit of being traded openly on the stock exchange.
What is F&O in Zerodha
F&O stands for Futures and Options. They are two types of derivatives, whose price depends on their underlying assets.
These underlying assets could be anything: stocks, indices, funds, commodity; you name it.
When studying F and O in Zerodha, knowing that you can do so without owning an actual asset is essential.
If you are not confident buying gold directly, you may gain from market volatility by trading in gold options and futures. You will require less funds to gain from this price volatility.
How to activate F&O in Zerodha
Zerodha F & O activation online follows the below steps:
Step 1– Log in to Zerodha Console
Step 2– Open the account tab on the top menu
Step 3– In the left column, click on Segments. You will likely come across a list of all active and non-active segments.
Step 4– Click on active the NSE- BSE stock options and futures. Click on continue
Step 5– Select the income range from the drop-down menu.
Step 6 – You must submit your income proof as part of the Zerodha F& O activation online procedure. A couple of options will emerge.
You are using holdings as income proof or submitting valid income proof with Zerodha. You may attach any of the below-mentioned documents as income proof.
- Six months bank statement in the name of Zerodha with an average bank balance of more than Rs, 10,000
- Form 16 with annual gross income exceeding 1,20,000
- Your latest salary slips with gross income exceeding 15,000
- ITR acknowledgment with gross income exceeding 1,20,000
- Certificate of net income worth more than 10,00,000
- Statement of demat holdings with current holdings exceeding 10,000
Step 7– Click on continue. You will come across a pop-up message. The segment modification request has been submitted. If everything is in order, enabling F & O in Zerodha would take around 48 hours.
Do you know: What is LTP in Zerodha & How to Profit from it in 2023
Here’s a Short Video on How to Activate F&O in Zerodha
Important Pointers Along With Documentation
When you provide the relevant documentation, you have to consider the following aspects too…
- Any of the documents that are provided need to have a relevant stamping authority
- Ensure that these documents are provided in PDF format to deal with f&o activate in Zerodha issues. The PDF file should not exceed 5 MB in size.
- If you are an NRI, you must take a printout of the segment activation form that can be downloaded and sent to the Zerodha corporate office.
F&O Charges in Zerodha
There are no f&o charges in Zerodha.
But if you want to activate the commodity segment, you need to shell out Rs 100 to open the commodity account.
You will not be charged for the commodity segment if you have paid for the segment while opening your account but have not enabled or signed up for the commodity segment.
Margin requirements for F&O trading in Zerodha
In F & O trading, margin requirements may vary depending on the contract type and the underlying asset’s volatility. For example, let’s say you want to trade in Nifty options.
The margin required to call Nifty 19,000 call would be Rs 50,000, whereas to buy the same call would be Rs 250. There has to be a margin needed in the trading account to enter into any trade.
You may pledge your existing holdings to use the margin of F & O. Hence it is better to check out the pledging and un-pledging of shares.
FAQs about How to Activate F&O in Zerodha
Wrap Up on How to Activate F&O in Zerodha
To conclude, these are the basic steps to know how to enable f&o in Zerodha online.
Once again, the suggestion is to have a basic knowledge of F & O before you start trading in this domain.
In case you missed: How to Check Dividend in Zerodha (Only for Beginners)
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