Does Zerodha block additional margins for brokerage and taxes in commodity trading?

Yes, Zerodha blocks an additional 0.01% of your turnover for Intraday (MIS) and Cover Orders (CO) in commodity futures and options. This covers Commodity Transaction Tax (CTT), exchange transaction charges, and SEBI charges.

Example scenario

1. You buy 1 lot of crude oil at ₹6,214.
2. The margin required is ₹3,58,101.
3. In addition to this, Zerodha blocks 0.01% of the transaction value i.e., 0.01% of ₹6,21,400 (₹6,214 × 100, where 1 lot is 100 BBL).
4. The margin now will be ₹3,58,101 + ₹62.14 = ₹3,58,163.14.
5. If you close a sell order for the same price, Zerodha releases the blocked margin.
6. However, your used margin on Kite will reflect ₹62.14.