Zerodha Delivery Carry-over

Leverage for delivery / carry-over positions

From WebNotes, a public knowledge base. Last updated . Reading time ~2 min.

Equity delivery (CNC) on Zerodha requires 100% upfront payment, no leverage. F&O NRML (overnight carry) allows SPAN-based leverage. The contrast reflects the different risk profiles of the two product types.

CNC delivery

For equity delivery:

  • Margin: 100% of notional value.
  • Leverage: 1x.
  • Settlement: T+1 (or T+0 for eligible scrips).
  • Carry: Indefinite (you own the shares).

This is the standard buy-and-hold equity model. Capital is fully deployed.

F&O NRML (overnight carry)

For F&O:

  • Margin: SPAN + Exposure (~10-20% of notional).
  • Leverage: 5-10x typically.
  • Settlement: Daily MTM.
  • Carry: Until contract expiry or you close.

Intraday vs overnight in F&O

ProductMarginCarry
F&O MISSame as NRML for that dayAuto-squared end of day
F&O NRMLSame SPAN as MISOvernight allowed

Both use the same margin; the difference is auto-square-off vs hold.

MTF as a third option

For equity with leverage, MTF (Margin Trading Facility) provides:

  • 25-50% upfront; broker funds the rest.
  • Interest charged daily.
  • Position can be carried overnight (subject to MTF rules).
  • Different framework from CNC or MIS.

Zerodha currently does not offer MTF as a major product; some other brokers do. See Zerodha MTF .

Capital allocation

For a Rs 5 lakh capital:

  • All-CNC: Buy Rs 5 lakh notional of equity (1x).
  • All-F&O NRML: Take Rs 25-50 lakh notional position (5-10x).
  • Mix: Diversify across delivery and F&O per risk tolerance.

The right mix depends on:

  • Conviction level.
  • Volatility tolerance.
  • Capital protection priority.

See also

External references

References

  1. Zerodha, Product types and margin, zerodha.com.
  2. SEBI, Equity and F&O margin framework, sebi.gov.in.

Related articles

  • Additional margin for selling index options

    SEBI / NSE may impose additional margin on selling index options (Nifty, BankNifty, FinNifty, MidcapNifty) during heightened volatility or …

  • Cash component vs collateral component

    F&O margin can be funded from cash, cash-equivalent, or pledged equity collateral. SEBI requires at least 50% in cash component. Explains …

  • ELM (Extreme Loss Margin) on Zerodha

    ELM (Extreme Loss Margin) is a tail-risk buffer added on top of SPAN for F&O positions. Explains what ELM covers, the rate per contract, and …

  • Exposure margin on Zerodha

    Exposure margin on Zerodha (and Indian F&O) is the fixed-percentage buffer added on top of SPAN. Explains the rationale, the rates per …

  • F&O profits available same day

    F&O daily MTM profits are credited to the trading account same day (end of day), available for fresh margin / trades the next day. Explains …

  • Higher margin near expiry

    F&O positions face higher margin in the days leading to expiry, especially for stock options with physical settlement. Explains the …

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed
Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.