Reference commodity funds Zerodha single ledger

Equity to commodity fund transfer on Zerodha

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There is no equity-to-commodity fund transfer on Zerodha, because there is nothing to transfer. Zerodha operates a single ledger for a trading account, which means the equity and commodity segments draw on the same balance. Money added to the account is available for both, so a trader does not move funds from one segment to another.

Why there is no transfer step

On some older broking systems, the equity and commodity businesses were run as separate accounts with separate balances, and a client had to move money between them. Zerodha does not work that way. The account holds one balance, and that balance funds a trade in whichever segment the order is placed, subject to the margin the specific instrument requires. So the question “how do I move money from equity to commodity” has a short answer: you do not, the money is already available to both.

The only prerequisite is a one-time activation. The commodity segment has to be switched on once for the account, after which the existing balance can fund commodity positions. Activation is a setting on the account, not a funding action, and it does not create a separate commodity balance.

What this means in practice

There is no separate commodity wallet, no inter-segment transfer request, and no waiting period for money to move between segments, because the money never moves between segments.

Frequently asked questions

How do I transfer funds from equity to commodity on Zerodha?
You do not. Zerodha runs a single ledger, so the equity and commodity segments draw on the same balance. Once the commodity segment is active, the funds already in the account can be used for commodity trades without any transfer.
Do I need to add money separately for commodity trading?
No. Money is added to the account once, and the same balance is available for both equity and commodity. There is no separate commodity wallet to fund.
What is the one thing I need to do before trading commodities?
Activate the commodity segment once from Console. After activation, the existing account balance funds commodity positions with no transfer step.
Is the margin shown separately for equity and commodity?
The available balance is one pool, but the margin a position blocks depends on the instrument. The single ledger means a rupee is not locked to one segment until it is used as margin for a specific trade.

See also

External references

References

  1. Zerodha Support, Can I use the same funds for trading on equity as well as commodity?, support.zerodha.com.

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