Activating option trading in Zerodha Kite is a straightforward process that you can complete in a few steps. Zerodha, one of India’s leading brokerage firms, offers its users the ability to trade in various market segments, including options trading. Here’s a guide on how to activate option trading in Zerodha Kite, presented in a simple and clear language.
Steps to Activate Option Trading in Zerodha Kite
- Login to Zerodha Console: Start by logging in to the Zerodha Console using your login credentials. This is your first step towards enabling option trading in your account.
2. Navigate to ‘My Profile’: Once you’re logged in, click on the drop-down menu on the right corner of your screen and select ‘My Profile.’
3. Activate Segment: In your profile, you will find an option to ‘Activate Segment.’ Click on this to proceed.
4. Select Segment and Upload Income Proof: You will then need to click on the segment you wish to activate (Futures & Options in this case). It’s mandatory to enter your gross income and upload proof of the same. The accepted documents include your latest salary slip, a 6-month bank statement, a certificate of net worth, a statement of your demat holdings, or a copy of your ITR acknowledgment.
5. Submit Your Application: After filling out the necessary details and uploading the required documents, click on the ‘Submit’ button.
6. Wait for Activation: Generally, the options segment gets activated within 48 hours after submission, provided all documents are correct.
Additional Information
- Charges: There are no charges for activating the Futures & Options segment in Zerodha.
- Required Documents: You can use various documents as income proof, like a bank statement showing an average balance of more than ₹10,000, a salary slip with a monthly income exceeding ₹15,000, or a net worth certificate exceeding ₹10,00,000.
Trading in Options: Basic Steps
Once your account is set up for options trading, you can start trading by following these simple steps:
- Add Funds: Click on ‘Funds’ from the top menu and then on ‘ADD FUNDS’ to transfer money to your account for trading.
- Add Options to Market Watch: Use the ‘Universal Search’ to find and add the options contracts you wish to trade to your Market Watch.
- Understanding Options Contracts: Familiarize yourself with the various aspects of options contracts like market depth, quantity, orders, opening price, highest and lowest price of the day, etc.
- Placing an Options Buy Order: You can place a buy order by clicking on the ‘B’ button that appears when you hover over an option contract in your market watch.
- Checking Order Execution: Always check if your order is executed, which can be done in the ‘Orders’ section.
- Cancel or Modify Orders: You have the option to cancel or modify open orders if needed.
Activating option trading in Zerodha Kite is a process that can be completed in a few steps. It requires you to log in to the Zerodha Console, navigate to your profile, and follow the instructions to activate the required segment. Remember, trading in options involves risks, and it’s crucial to understand the market and the instruments you are trading in. Make sure to use the tools and resources provided by Zerodha to make informed trading decisions.
The process is designed to be user-friendly, and Zerodha’s customer support is available to assist you in case you encounter any issues. With no additional charges for activating the options segment and a straightforward activation process, Zerodha Kite provides a seamless trading experience for those interested in options trading.