How to activate F&O in Zerodha is a common question of many new Zerodha users. Activating the F&O segment in Zerodha is straightforward and requires following a few essential steps. In this post, I will explain how to activate F&O in Zerodha, and by the end of the post, you will have excellent clarity on how to activate F&O in Zerodha.
What is F&O and Why activate it?
F&O stands for Futures and Options segment, and activating this segment is crucial for Futures and Options trading. Futures and Options trading involves buying and selling the contracts based on the value of an underlying asset to earn profits. However, the segment is considered highly risky. Hence, you must only trade in F&O segment after proper learning. The segment is not enabled by default in Zerodha, and you must enable it to trade in this segment.
How to activate F&O in Zerodha: Charges for Activating F&O
Zerodha doesn't charge any additional fee on F&O activation. However, the platform does charge brokerage fee on Futures and Options trading. Zerodha charges 0.03% or ₹20, whichever is lower per executed order on Futures and Flat ₹20 per executed order on all options trades.
How to Activate F&O in Zerodha: Documents
To open a Zerodha account, you will need your PAN and Aadhar card. To activate the F&O segment in Zerodha, you need to submit one of the following documents:
- Your last six months' bank statement with an average balance of more than ₹10,000.
- Your latest salary slip with a gross monthly income of more than ₹15,000.
- You can submit your ITR acknowledgment with a gross annual income of more than ₹1,20,000.
- Form 16 with gross annual income exceeding ₹1,20,000.
- Certificate of net worth more than ₹10,00,000.
- Demat holdings statement with current holdings value of more than ₹10,000.
How to Activate F&O in Zerodha: During Account Opening
Zerodha allows you to enable the F&O or Futures and Options segment during the account opening. If you want to enable it, you only need to submit your six-month bank statement or any other valid douments, and that's it. It's also essential to bear in mind that you need to have your Aadhar card linked with your PAN to open a new account.
How to Activate F&O in Zerodha: From the Zerodha Console
Even though you can enable the F&O segment during account opening in Zerodha, many new users fail to notice it. If you overlooked it too, you can still activate the segment from the Zerodha console. You need to first log in to your Zerodha Console. Next, you will need to click on Account, and then Segment.
Once you click on Segment, you will see the various active and inactive segments. You only need to enable the Futures and Options segment for NSE and BSE. Next, you can click Continue to select your income range.
After that, click Choose file, and upload your income proof. You must accept the terms and conditions and select Email or SMS or OTP verification. Next, you could complete the OTP verification and the segment will be activated within 72 working hours.
Even though Zerodha keeps thing simple, activating the F&O segment can be still a little challenging for new users especially if one has overlooked the option during account opening. However, the best part is you can enable and disable any segment anytime on Zerodha. I have explained how you can go about it, and I am sure you have gained good clarity after reading this post.
How to Activate F&O in Zerodha: FAQs
What is F&O trading in Zerodha?
F&O stands for Futures and Options, a segment of trading where you can trade contracts based on the future price of stocks or indices. It's a popular form of derivatives trading in India.
How can I activate F&O trading in my Zerodha account?
You need to follow these steps to activate F&O trading in Zerodha.
How do I open a Zerodha account?
To trade F&O or any other segment in Zerodha, you need to first open a Zerodha trading and demat account. You can do this online through the Zerodha website.
Do I need to submit any additional documents for F&O trading?
While opening your Zerodha account, you will be required to submit the necessary Know Your Customer (KYC) documents, which are also applicable for F&O trading.
Is there any minimum balance requirement for F&O trading?
Zerodha doesn't have a minimum balance requirement for F&O trading, but it's essential to maintain a sufficient balance to meet margin requirements for your trades.
What is a trading and demat account, and do I need both for F&O trading?
Yes, you need both a trading account (for placing orders) and a demat account (for holding shares) to trade F&O in Zerodha. Zerodha offers both these accounts as part of the account opening process.
How can I learn about F&O trading strategies?
Zerodha provides educational resources, webinars, and a dedicated learning portal called “Varsity” to help traders learn about F&O trading strategies.
What are the brokerage charges for F&O trading in Zerodha?
Brokerage charges for F&O trading in Zerodha vary based on the type of order and trading volume. You can find the detailed brokerage structure on the Zerodha website.
How do I place F&O orders in Zerodha?
You can place F&O orders through the Zerodha Kite trading platform, either on the web or through the mobile app. You can place market orders, limit orders, stop-loss orders, and more.
Can I activate F&O trading after opening a Zerodha account?
Yes, you can activate F&O trading after opening your Zerodha account. You can do this by logging into your account and enabling F&O trading in the account settings.
Is there a risk involved in F&O trading?
Yes, F&O trading involves a significant level of risk due to leverage and price volatility. It's important to have a solid understanding of the market and risk management strategies before trading in this segment.
How do I keep track of my F&O trades and positions in Zerodha?
Zerodha provides a comprehensive dashboard where you can monitor your F&O trades and positions in real-time. You can also access trade reports and statements through your account.
Please note that Zerodha's policies and procedures may change over time, so it's advisable to visit their official website or contact their customer support for the most up-to-date information on F&O trading activation.