Zerodha provides up to 5 times (20% margin) leverage for intraday trading using Margin Intraday Square off
(MIS)
and
Cover Order (CO)
for equity. This means with ₹1 lakh, you can buy or sell stocks for intraday up to ₹5 lakh. The
list of eligible
stocks
and
the leverage provided change based on Zerodha's policy. Due to peak margin rules by
SEBI,
no leverage is offered for equity,
F&O,
currency,
and
commodities
segments.
The order window displays the applicable leverage (for example, 5x) for both intraday and MTF order types, next to the required margin. Currently, the applicable leverage is displayed on the Kite web and will soon be implemented on the Kite app.
Peak margin regulations
Peak margin regulation was introduced in 2020 to ensure that brokers don't take large risks by providing higher margins or leverage to customers. Today, all brokerage firms in India can offer the same maximum intraday leverage.
For more information about peak margin circulars, visit tradingqna.com/t/peak-margin-requirements-from-dec-1st-2020-its-effects.
Finding eligible stocks and current leverage
Zerodha's margin calculator lists stocks allowed to trade with leverage. The bulletin updates the list of available leverage and any changes in Zerodha's policy.