Trading Futures and Options (F&O) can be an excellent way to make money in the stock market. If you’re a Zerodha user looking to activate the F&O segment, you’ve come to the right place. In this post, I’ll walk you through simple steps to activate the futures and options segment in Zerodha. By following these steps, you’ll be ready to trade F&O in no time.
How to activate F&O in Zerodha?
To activate the futures and Options segment in Zerodha, follow these steps:
Step 1: Log in to Console. (console.zerodha.com/dashboard)
Step 2: Click on the “Account” tab above.
Step 3: In Account, Click on the “Segments” option.
Step 4: Now, you will see many options. Click “NSE – Futures & Options, BSE – Futures & Options” to enable them.
Step 5: Click on “Continue.”
Step 6: Select the “Gross Income” and “Income Proof Type” and click on Choose file.
Step 7: Accept the terms and conditions.
Step 8: Select Email or SMS to receive the OTP.
Step 9: Enter the OTP you receive by Email or SMS and click on Verify.
The segments will be activated within 72 working hours by following these steps.
For valid income proof, you can add any one of the following documents:
- Bank statement: Submit your bank statement for the last six months with an average balance of more than ₹10,000. The statement must be in the name of the Zerodha account holder.
- Latest salary slip: Provide the most recent salary slip showing a gross monthly income exceeding ₹15,000.
- ITR acknowledgement: Submit the Income Tax Return (ITR) acknowledgement indicating a gross annual income exceeding ₹1,20,000.
- Form 16: Provide Form 16, which confirms a gross annual income exceeding ₹1,20,000.
- Certificate of net worth: Submit a certificate indicating a net worth of more than ₹10,00,000.
- Statement of demat holdings: Provide a statement of your demat holdings, showing the value of a current holding exceeding ₹10,000.
Ensure the income proof file is in PDF format and does not exceed 5 MB.
Also Read: Does Zerodha Charge for Rejected or Cancelled Orders
How to Activate F&O for NRIs
To activate Futures and Options (F&O) trading for Non-Resident Indians (NRIs), you need to follow these simple steps:
- 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
Address:
Zerodha,
153/154, 4th Cross,
J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru – 560078.
Also Read: How to Get Zerodha CMR (Client Master Report) Copy Online
How to Deactivate F&O Trading in Zerodha
To deactivate the futures and Options segment in Zerodha, follow these steps:
Step 1: Log in to Console. (console.zerodha.com/dashboard)
Step 2: Click on the “Account” tab above.
Step 3: In Account, Click on the “Segments” option.
Step 4: Now, you will see many options. Click “NSE – Futures & Options, BSE – Futures & Options” to deactivate them.
Step 5: Click on “Continue”, & “Confirm.”
Once you deactivate a particular segment, you cannot reactivate it immediately. There is a waiting period of 12 hours before you can enable that again.
After 12 hours, you can activate the disabled segments. However, you must provide a One-Time Password (OTP) during reactivation.
Margin Requirements for F&O Trading in Zerodha
When you trade in Futures and Options (F&O), the money you need in your trading account as a deposit (known as margin) can vary. The margin requirements depend on the type of contract you’re trading and how much the underlying asset is likely to change in value.
For example, let’s say you’re interested in trading Nifty options. To buy a Bank Nifty 44000 call option, you need at least Rs 50,000 in your trading account as a margin. But the margin required would be different if you want to sell (write) the same call option.
Having at least the required margin amount in your trading account is important to participate in any trade. This ensures you have enough funds to cover any potential losses or obligations arising from your trades.
Remember, margin requirements can vary, and staying updated with the current margin rates set by the exchange and your broker is essential.
Also Read: What is TPIN in Zerodha? How to Use TPIN? – Explained
Conclusion
Trading in futures and options can be suitable for traders, but it’s essential to be aware of the risks involved and trade carefully. By following the above-mentioned steps, you can activate the Futures and Options segment in Zerodha.
