How to Use Zerodha for Trading: A Step-by-Step Guide

Zerodha is one of India’s leading discount brokers, offering a seamless and cost-effective trading platform for investors. Whether you’re a beginner or an experienced trader, understanding how to use Zerodha effectively can enhance your trading experience. This guide provides a comprehensive overview of how to use Zerodha for trading.

Step 1: Open a Zerodha Account

To start trading on Zerodha, you need to open a Demat and Trading account. Follow these steps:

1. Visit the Zerodha official website (https://zerodha.com/) and click on ‘Sign Up’.
2. Enter your mobile number to receive an OTP for verification.
3. Provide your PAN card, Aadhaar card, and bank details for KYC verification.
4. Upload scanned copies of your signature, income proof (for derivatives trading), and a passport-size photo.
5. Complete the e-sign process using Aadhaar-linked mobile number.
6. Pay the required account opening fee.
7. Once verified, you will receive your Zerodha login credentials.

Step 2: Log in to Zerodha’s Trading Platforms

Zerodha offers multiple platforms for trading:

• Kite (Web & Mobile App): The primary trading platform for stocks, derivatives, and commodities.
• Console: Zerodha’s back-office dashboard for portfolio tracking and reports.
• Coin: Zerodha’s mutual fund investment platform.

To log in:

1. Open Kite via the website (kite.zerodha.com) or mobile app.
2. Enter your client ID and password.
3. Complete the 2FA authentication by entering your PIN or OTP.

Step 3: Add Funds to Your Trading Account

Before placing trades, you need to deposit funds:

1. Go to the Funds section in Kite.
2. Click on ‘Add Funds’.
3. Choose Net Banking, UPI, or Bank Transfer as payment options.
4. Enter the desired amount and complete the transaction.

Step 4: Search and Add Stocks to Watchlist

1. Use the search bar to find stocks, commodities, or derivatives.
2. Click on the ‘+’ icon to add them to your watchlist.
3. Organize stocks into multiple watchlists for easy access.

Step 5: Placing a Trade on Zerodha Kite

To buy or sell stocks:

1. Click on the stock name from the watchlist.
2. Select Buy (B) or Sell (S).
3. Choose the order type:
   • Market Order (MO): Buy/sell at the current market price.
   • Limit Order (LO): Buy/sell at a specific price.
   • Stop-Loss Order (SL/SL-M): Protect against heavy losses.
4. Enter the quantity and price (if applicable).
5. Select Intraday (MIS) or Delivery (CNC).
6. Click Buy/Sell to execute the trade.

Step 6: Monitor and Manage Orders

1. Go to the Orders section to check open/pending orders.
2. Modify or cancel an order if required.
3. Review executed trades in the Positions tab.

Step 7: Withdraw Funds

1. Open Console and go to the Funds tab.
2. Click Withdraw and enter the amount.
3. Withdrawals take 24-48 hours to reflect in your bank account.

Tips for Effective Trading on Zerodha

• Use charting tools and indicators for technical analysis.
• Set stop-loss orders to minimize risks.
• Keep an eye on brokerage charges and margins.
• Diversify your investments to reduce risk exposure.

Zerodha provides a powerful and user-friendly trading experience. By following this guide, you can efficiently trade stocks, derivatives, and commodities. Make sure to stay updated with market trends and practice risk management for successful trading.