If you’re reading this, chances are you’re either new to Zerodha or have been considering opening an account with it. Zerodha was the first discount broker in India, and it offers a wide range of transactions in many areas. Let’s take a closer look into Zerodha MIS!

If you’re interested to open your DEMAT Account with Zerodha, here is the Direct Account opening link

WHAT IS MIS?

Margin Intraday Square Off (MIS) are product codes that must be entered into Kite or Pi every time you place an order.

It’s a product code that must be entered every time you order through Kite or Pi.

Intraday Equity, Intraday F&O, and Intraday Commodity Trading all use the Margin Intraday Square Off (MIS) method. Depending on the stock you’re trading, the MIS product code will provide you an intraday leverage of 3 to 6 times. 

For index and stock contracts, the margins required for F&O will be 35 percent and 45 percent of the total margin required (SPAN + Exposure), respectively. For buying Options, no margins will be supplied.

For open intraday positions, the auto square-off times

Their technology automatically squares off open intraday positions at/after the times listed below for each segment:

ParticularEquity/CashEquity DerivativesCurrency DerivativesCommodities
Auto square off time3:20 PM3:25 PM4:45 PM25 minutes before Close

Starting at 3:20 p.m. and 3:25 p.m., all places under the EQ MIS and F&O MIS product codes will be automatically squared off (which is subject to change as per our RMS policy). By employing the MIS product code for Commodity, users will gain additional leverage and only need 50% of the overnight exchange specified margin (SPAN + exposure).

Note

  • Each order squared off by their system incurs an auto square-off (call and trade) penalty of Rs 50 (plus GST). 
  • It’s a good idea to close any open intraday trades before the above-mentioned hour.
  • Intraday square off timings may alter based on market volatility at the discretion of our risk management team. 
  • It is usually between 3.15 and 3.20 p.m. for equity, 3.25 p.m. for F&O, 4.45 p.m. for currency, and 25 p.m. for commodities. 
  • Users can keep up with any developments in the auto square-off timings by subscribing to this bulletin.
  • For intra-day positions squared-off by the system, Zerodha charges an extra Rs 50 per executed order on top of the brokerage (Rs 20 or 0.03 percent, whichever is lower).
  • Customers can convert MIS positions to CNC/NRML on Zerodha if they have enough margins and holdings (in the case of a sale) in their accounts.

ADVANTAGES OF MARGIN INTRADAY SQUARE OFFS

The following are some of the benefits of Margin Intraday Square-Off:

  • The Margin Intraday Square-Off technique is an intraday trading feature. MIS allows users to trade in a variety of markets, including index options, derivatives, cash, and commodity futures.
  • Users can maintain several holdings in various areas like commodities, currencies, and stocks.
  • With MIS orders, users will benefit from the high exposure on chosen contracts and equities, as determined by the stock exchange’s peak intraday margin guidelines.
  • A mandatory stop loss is not required for MIS orders. 
  • Based on their appropriateness, they can set a stop loss. With a MIS order, however, the broker will specify a cut-off value.

DISADVANTAGES OF MARGIN INTRADAY SQUARE OFFS:

1. If you do not square off your position manually, the order may be sold at a price that is not good for you because it will be squared off automatically.

2. Order tracking over numerous parts can be time-consuming and stressful.

To summarise, if you are considering (or already are) entering the stock market, it is highly recommended that you open an account with this broker “Zerodha” to save money on brokerage fees. We hope that your questions about Zerodha MIS were answered.