Zerodha is one of the fastest growing trading platforms out there. Or we should say, it is a leading platform in the market till date. Zerodha was started by Nithin Kamath in the year 2010. It was to overcome the hurdles that the traders faced at that time when no trading platforms were available. It was the time of old-style trading and most of the population was even not familiar with the share market world. Today in this article we are going to see in detail about the zerodha trading terminal and what are the benefits that this terminal can offer?
So let’s get started.
Table of contents –
- Getting familiar with Zerodha trading terminal
- Segments available for trading
- Buy/sell order types and how to place them?
- Setting stoploss and target manually
- Tools/studies available in the terminal
- Brokerage charges and other benefits
GETTING FAMILIAR WITH THE ZERODHA TERMINAL –
Zerodha (click to open account) has one of the simplest and most user-friendly interfaces. You will find all the important things at the distance of just few clicks. Take a look at the dashboard where I have marked some important things.
#1. You have a list of stocks at the left corner. Here you can add and delete the list according to your preferences. Like this, you have four more lists designated by 1,2,3,4,5 in the picture. You can edit and make all the list as per your wish. Keep the stocks that you want to keep track off and since you have five lists, you can divide your stocks sector wise.
#2. Your available account balance is displayed on the dashboard. The one here displayed is of Equity. If you deposit for MCX or commodities then one more balance type will be added.
#3. The dashboard screen also shows your overall profit and loss value. In this case, it is 163 ruppees in loss. But don’t worry, it is not loss yet. I have carried the stocks for long time and it’s just a dip!
#4. Then you can get a list of the order that you have placed by clicking on the order button. It will display the value at which the order is placed and also all the orders placed.
#5. By clicking on positions, you navigate to a page that shows profit/loss of the positions that you have made in the present day. For example, if you doing intraday then you P/L can be seen on positions tab and that too stock wise. If you placed a holding trade, then you position will appear in positions tab for one day and then after that it will move to the holdings tab.
#6. You can click on the funds tab to get detailed information of the type of funds available i.e. equity, commodities etc. Also, you have the option of generating report to track you debits and credits.
#7. Lastly, your zerodha account name is shown on the top right corner. By clicking on it, you can manage your profile and generate a bunch of other reports.
SEGMENTS AVAILABLE FOR TRADING –
Zerodha offers a fair range of segments for trading. With the same account you can trade in –
- Commodities and MCX
- Derivatives (Options)
- Currency exchange
You just have to activate the account types and fulfill the required documentation. Else everything will be managed by Zerodha.
Just a little advice, if you are a beginner in stock market then start trading with Equity. Learn the concept and then go for other segments. Don’t directly jump into other segments especially futures and options otherwise your career may end sooner than you would have thought.
BUY/SELL ORDER TYPES AND HOW TO PLACE THEM –
There are different types of orders or we should say there are bunch of options that zerodha offers. Let us discuss each order types. Just keep in mind their meanings will remain same but in the context of buy and sell.
#1. Market order – Buy/sell the stock at the market price. Market price is the price at which the stock is currently trading. When you buy or sell at market price, you will get the share at the price at which it is trading at the moment.
#2. Limit order – Simply means, buy/sell at you preferred price. Your buy/sell order will get executed at your defined price.
#3. Stoploss order (SL order) – Buy/sell at your preferred price along with a predefined stoploss. This is just a better version of limit order.
#4. Stoploss Market order (SL-M) – Buy/sell at market price with a predefined stoploss of your preference.
These are the four order types you can execute in zerodha and are helpful in their own ways. You can see in the image of buy panel also, I have marked them for you.
For placing order, first select the intraday/longterm as per your requirement. Then, fill the quantity and select the order type that you want to place. Then simply click on buy button. Same will work for placing sell orders.
One special feature – Zerodha shows you the margin(money) requirement in advance, so that you can get an estimate of how much you can buy or sell according to your capital.
SETTING STOPLOSS AND TARGET –
There are two ways – Either you can place stoploss & target at the same time you place the order or you can do it manually.
First let us see the automatic way. For this zerodha has the facility of Bracket orders and Cover orders.
Bracket Order – It lets you place your stoploss and target at the same time you execute the order. No need to go and setup the orders manually.
Cover Order – It lets you place stoploss along with your order. But the target is open. You have to set the target manually.
Please note at present zerodha has disabled the bracket order facility keeping in mind the volatility of the market. However, it will be available soon.
The manual way –
In case you placed a market order then you have the option of setting your stoploss and target manually. Since market orders or simple limit order do not provide the functionality of setting your targets, you have to set them manually. To do this follow the steps below –
- Once you have place your buy/sell order, go to positions tab and click the three button icon. Then click on exit.
2. Then, click on limit order type and enter your preferred target price. Target price means if it gets achieved then you will be profitable.
3. To set stoploss, select SL-M and enter your stoploss price and click on buy/sell button.
And you are done. You have placed stoploss and target manually. Now just sit and relax.
TOOLS/ STUDIES AVAILABLE IN THE TERMINAL –
There are different types of studies or more precisely you can call them indicators that are available on the terminal. Indicators make it easy for you to determine trend and help in taking trade.
Also, you can change the chart type if you like. There are bunch of charts available like Heikin ashi, histogram, line chart, hollow candle, scatter plot etc. You can choose according to your convenience. But the most famous and used one is the Japanese candle sticks chart.
To choose indicators/studies, just click on the studies tab and a list will appear like this.
Choose you preferred indicator and do the necessary settings and you are done.
To change the chart type, click on the display tab and then choose you preferred chart tye. Generally, Japanese candlesticks is the most preferred one.
BROKERAGE CHARGES AND OTHER BENEFITS –
Like all other platforms, zerodha also charges a nominal fee of Rs. 20 per intraday order + taxes. To get a more detailed information, you can visit their brokerage calculator. Here you can check out all types of charges from delivery to intraday trade types.
Enter the necessary details and you will get all the information needed. That’s a very good feature of zerodha.
I feel there is no need to elaborate about the brokerage charges, since they have a very good self-explanatory calculator out there. But there is one feature that I should cover.
GTT Orders –
Unlike any other platforms, zerodha has a special feature of GTT orders. GTT means good till triggered. This order type is specifically for the delivery orders where you are trading for months and you want to exit at a specific price.
So, suppose you bought SBI bank shares at 401 and you want to sell this at 450. You are not sure when it will reach at that point. But it is certain that it will reach that mark in 5 or 6 months. In that case, you can set a GTT order of 450 and relax. The moment it reaches at that mark you will exit automatically. No need to track it every day, GTT is there to take care of.
You can even define your stoploss with GTT. But this GTT order is only valid for one year and after that you have to set it again if you haven’t hit your target.
That’s all for now readers!!
Personally speaking Zerodha is the best trading platform. If you want to open an account, you can do it by clicking this link – Open Account!
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