Ready to Start Options Trading in Zerodha Kite Easily and Quickly !!
Zerodha is one of the leading online brokerage platforms in India that offers a user-friendly interface and comprehensive tools for options trading. In this guide, we will discuss in detail how to do options trading in Zerodha. You’ll gain insights into understanding what is options trading, how to buy/sell trades, manage risk, and use Zerodha’s features to enhance your trading experience.
By the end of this guide, you’ll be confident with all basic fundamental concepts to start your Zerodha options trading journey.
What is options trading in zerodha?
Options trading in Zerodha kite involves trading in options contracts. Let’s understand options Trading in Zerodha in Simple Language:
Options trading is like an agreement with someone. Suppose you want to buy a mobile phone from a friend, but you don’t have money right now to pay for the mobile phone. Therefore, you make a deal with your friend that as of now you can pay them a small amount (Called a premium) of money to hold the mobile phone until you’re ready to buy it.
Also Read: Which Book is Best for Option Buying?
The dealing (Option Trading Agreement) you (option buyer)have done for a product (Stock/underlying asset) with your friend (option seller) is similar to how options work in the stock market.
In the stock market, an option is a contract that gives you the right, but not the obligation, to buy or sell a certain stock (or other assets) at a specific price on or before a particular date. There are two main types of options: “call options (CE)” and “put options (PE)”.
Zerodha, a leading brokerage platform, provides traders with the opportunity to engage in options trading through its user-friendly platform.
Is Zerodha Good For Beginners In India 2024? Honest Review
Zerodha Options trading platform
Zerodha has 2 platforms for options trading in Zerodha:
Zerodha Kite
Zerodha’s Kite platform offers traders a seamless experience for options trading. Zerodha Kite app offers access to real-time data, advanced charting tools, technical indicators, and different order types.
Sensibull
Sensibull is a specialized option trading platform that helps traders to manage risks and take rational decisions in the options market. The trading platform offers features such as options strategy builders, implied volatility analysis, Greeks calculators, and live market sentiment indicators. You can start options trading in Zerodha from Sensibull.
How to activate options trading in zerodha?
So, here is the step-by-step process on “How to activate the F&O segment in Zerodha?”:
Step 1: Log in to your Zerodha kite app/web account with your credentials.
Step 2: Click on your Client ID in the top right and go to the ‘My Profile’ section.
Step 3: Click on the ‘Segments’ option and you will see the below options.
Step 4: Drag the blue button of the segment you want to activate and click on the Continue Button. It will ask for income proof based on the segment you want to activate.
The F&O segment will be activated in 12 hours.
How to do options trading in zerodha kite?
Here are the steps to do options trading in Zerodha Kite:
Step 1: Login to Zerodha Kite App/web with your login credentials.
Step 2: Select the desired underlying asset.
Step 3: Choose the option contract you want to trade.
Step 4: Select the order type (market, limit, etc.).
Step 5: Enter the quantity of contracts you want to trade.
Step 6: Specify the price at which you want to execute the trade (if applicable).
Step 7: Review your order and confirm the trade.
How to Do Intraday Trading in Zerodha 2024 (5 Simple Steps)
How to buy call/put options in zerodha?
Step 1: Log in to Zerodha Kite or the mobile app
Zerodha Kite Login Link https://kite.zerodha.com/. Access the link on the web or directly log in to the kite app on your mobile phone. If you open the zerodha app on the web, you will receive an M-code on your mobile app.
Step 2: Add funds to your account
The next step of Zerodha option trading is to add funds to your account. Click on the green-colored ‘ADD FUNDS’ button and enter the amount. This will open an online payment gateway to select the option from UPI or Netbanking.
Step 3: Choose the option contract you want to buy
Firstly, add the Call/Put Options contract you want to buy in your market watch. You can create up to 7 MarketWatch lists with a maximum of 50 scrips per Marketwatch.
Simply, enter the name of the Option contract you want to add and click on ‘+’. For example, to add the Nifty 50 index, enter Nifty 50 in the search bar, select and click on +. Similarly, you can search and add option contracts of companies and banks nifty.
Step 4: Place the option buy/sell order
Once you have added desired option contracts to your market watchlist, it’s time to place the buy/sell option order. Simply move your cursor over any of the Option contracts and you will see a buy (B) (blue color) and sell (S) (red color) button.
Click on ‘B’ for the buy order or ‘S’ for the sell order. A popup window will open to fill in the required details such as type of order, quantity, price, etc.
Step 5: Review and confirm the order
Once you have filled in all the details, review it and confirm our order. Check if your order is executed under the ‘Orders’ button in the top menu.
How to sell an Options contract order?
The process of selling an option contract is similar to buying an option contract in Zerodha.
Step 1: Go to Market Watch and hover your mouse on the specific contract you wish to sell.
Step 2: Here, you will see 2 options (B) (blue color) to buy and (S) (Red color) to sell.
Step 3: Click on ‘S’ to open the selling dialogue box. Enter the price and Quantity you want to sell and click on the Sell button.
Step 4: Click on ‘orders’ on the top menu to check if your sell order is executed. You can also modify or cancel the order by following the steps explained below.
How to cancel or modify an open Options contract order?
Go to the order tab and bring your mouse to the specific contract you want to cancel or modify.
Click on the three blue-colored dots on the side of the contract name. Here, a drop-down will open, where you can modify or cancel the contract. It allows you to change the price of the order.
Claim your !! How To Make Money Trading With Candlestick Charts? (Free PDF)
Zerodha Option brokerage
| Zerodha option trading charges | Equity delivery | Equity intraday | F&O – Futures | F&O – Options |
| Brokerage | Zero Brokerage | 0.03% or Rs. 20/executed order whichever is lower | 0.03% or Rs. 20/executed order whichever is lower | Flat Rs. 20 per executed order |
| STT/CTT | 0.1% on buy & sell | 0.025% on the sell side | 0.0125% on the sell side | 0.125% of the intrinsic value on options that are bought and exercised 0.0625% on sell side (on premium) |
| Transaction charges | NSE: 0.00325% BSE: 0.00375% | NSE: 0.00325% BSE: 0.00375% | NSE: 0.0019% BSE: 0 | NSE: 0.05% (on premium) BSE: 0.005% (on premium) |
| GST | 18% on (brokerage + SEBI charges + transaction charges) | 18% on (brokerage + SEBI charges + transaction charges) | 18% on (brokerage + SEBI charges + transaction charges) | 18% on (brokerage + SEBI charges + transaction charges) |
| SEBI charges | ₹10 / crore | ₹10 / crore | ₹10 / crore | ₹10 / crore |
| Stamp charges | 0.015% or ₹1500 / crore on buy side | 0.003% or ₹300 / crore on buy side | 0.002% or ₹200 / crore on buy side | 0.003% or ₹300 / crore on buy side |
Zerodha option brokerage calculator
Compute Brokerage on Options Trading by using Zerodha Option Brokerage Calculator
Frequently Asked Questions
1. How to Start Options Trading in Zerodha?
Step 1: Open Zerodha Account and Download Kite App.
Step 2: Search for the option contract (Choose Expiry and Strike Price) and add to the Market Watch.
Step 3: Specify quantity, order type, and other details and Place Order of the specific option contract.
Step 4: Monitor Positions under the “Orders” and “Positions” sections of the app.
2. Can We Trade Options on Zerodha?
Yes, you can do options trading in Zerodha Kite platform. Kita is a user-friendly interface that allows users to access option contracts and tools to manage and monitor the options positions.
3. How to Search for Options in Zerodha?
Open the Zerodha Kite App and go to the “Market Watch” section. Now, use the search bar to type the name of the stock or instrument you’re interested in.
4. Can a Beginner Start Option Trading?
Yes, a beginner can start options trading in Zerodha Kite, but it’s advisable to firstly learn intraday and swing trading to understand how the market works. Option trading involves a high risk and without risk management, a beginner can lose all of his/her money in option trading.
