Key ways to amplify your Derivatives Trading

We at Kotak Securities are committed to ease your trading journey and be the one-stop solution to all your equities, derivatives and other investment needs.
With our Trade Free Plan, you get these benefits across the segments:

ZERO Brokerage

Pay Rs.0 for all intraday trades

No Interest

0 interest on intraday trades

Larger Time Window

No auto square-off at 3:30pm in expiring Options under MIS on expiry days

More Opportunities

Strikes allowed up to 19% away in OTM options for normal orders

Hedge Benefit

Only pay net additional margin for 2nd leg

Cutting-edge platforms

Fully integrated trading platforms with advanced charts

Advanced trading

Free of cost, Kotak Trade API for pro traders

In-depth research expertise

Real-time access to our quality research calls

Up your game in Derivative Trading With Kotak Securities Research

Cutting edge trading experience at affordable pricing

Enjoy options trading across equities, commodities and currencies segment on our advanced platforms

Unbelievable pricing with Trade Free Plan

  • No Brokerage Plan
  • ₹0  brokerage on intraday trades
  • ₹20 per all carry-forward F&O trades
  • ₹0 interest on intraday trades

Why Choose Kotak for F&O Trading

Kotak Securities Limited is one of the leading stockbrokers in India, known for its expertise in F&O (Futures and Options) trading. If you're looking to enter the world of F&O trading, here are a few reasons why you should consider choosing Kotak for your trading needs:

  • Wide range of products: Kotak offers a wide range of F&O products, including futures and options on indices, stocks, and commodities. This allows traders to diversify their portfolios and take advantage of different market conditions.
  • Advanced trading platform: Kotak's trading platform is one of the most advanced in the industry, with features such as real-time market data, multiple order types, and advanced charting tools. This makes it easy for traders to make informed decisions and execute trades quickly.
  • Expertise in F&O trading: Kotak has a team of experienced F&O traders who have deep knowledge of the market and can provide valuable insights and advice. This can be especially helpful for new traders who may not have as much experience in the market.
  • Strong research and analytics: Kotak provides detailed research and analytics on the market, including technical and fundamental analysis. This can help traders make more informed decisions and stay up-to-date on market trends.
  • Competitive pricing: Kotak offers competitive pricing on F&O trades, making it accessible for traders of all levels.
  • Strong reputation: Kotak Securities has a strong reputation for providing quality service and has been in business for decades. This gives traders’ peace of mind knowing that their investments are in good hands.

How to open your F&O account in 3 steps:

Provide quick details

Fill in your personal, address, bank details and upload identity proof.


Fulfill Aadhaar based e-Sign.

Start derivatives trading!

Post verification and activation, begin your derivatives trading journey.

Benefits of Opening a Futures and Options Trading Account with Kotak

Kotak Securities Limited is a reliable and trustworthy option for F&O trading in India. With a wide range of products, an advanced trading platform, expertise in trading in future and options, strong research and analytics, competitive pricing, and a strong reputation, Kotak is an excellent choice for traders of all levels.

There are several benefits of opening a futures and options trading account with Kotak Securities. Let’s have a look at some of them.

  • Access to a wide range of financial instruments: Kotak Securities offers trading in a variety of futures and options products, including index and stock options, index and stock futures, and currency futures.
  • Advanced trading platform: Kotak Securities provides access to its proprietary KOTAKSTREET trading platform, which offers advanced features such as real-time market data, advanced charting, and a user-friendly interface.
  • Research and analysis: Kotak Securities provides its clients with access to extensive research and analysis, including market updates, trading ideas, and technical and fundamental analysis.
  • Margin trading: Kotak Securities offers margin trading, which allows traders to trade on leverage, increasing the potential returns on investment but also increasing risk.
  • High level of security: Kotak Securities ensures the safety of the client's account and personal information with robust security measures and strict compliance with regulations.
  • Customer support: Kotak Securities provides 24x7 customer support to its clients through phone, email, and live chat, ensuring that clients can get assistance whenever they need it.

FAQ for Futures and Options

Yes. If you invest right and smart, F&O trading can be very profitable.

While it’s all down to one’s risk appetite, Futures are considered a bit riskier compared to Options.

Yes, investing in F&O is safe. But it’s important to remember that the margins for profits as well as losses at times, could be extreme.

Futures and Options(F&O) are tools used by investors when trading in the stock market. As financial contracts between the buyer and the seller of an asset, they offer the potential to earn huge profits.

Futures are contracts or an agreement between two parties to either buy or sell a fixed quantity of assets at a particular time in the future for a fixed price. An option is also a similar contract, except the parties are not obligated to fulfill the terms of the agreement. These contracts are then traded in the market. The minimum value of a contract is Rs 2 lakh.

Futures and Options(F&O) contracts can be of various types including shares, indices, currencies as well as commodities.

There are many advantages of trading in futures and options. Futures and Options(F&O) contracts have hedging, arbitrage and leverage benefits.

Arbitrage implies taking advantage of price differences in the same or similar financial instruments.

The most common use of derivatives trading is hedging. It's possible to use Futures and Options(F&O) contracts to set up a trading strategy in which a loss for one investment is mitigated or offset by a gain in a comparable derivative.

Margin trade:
While trading in the derivatives market, you only pay a margin. This is because the actual value of the contracts would be too large in lakhs and crores. However, when you make a profit, the percentage of growth is exponentially higher. This allows you to make more money.

Options can be bought for an underlying asset at a fraction of the actual price of the asset in the spot market by paying an upfront premium. The amount paid as a premium to the seller is the price of entering an options contract.

Yes. You would need a trading account to trade in Futures and Options(F&O).

Lot size refers to a fixed number of units of the underlying asset that form part of a single Futures and Options(F&O) contract. The standard lot size is different for each stock and is decided by the exchange on which the stock is traded.

To start trading in Futures and Options(F&O), all you need to do is open an online trading account.

When you buy in the cash segment, you have to pay the entire value of the shares purchased – this is unless you are a day trader utilizing margin trading. You have to pay this amount upfront to the exchange or the clearing house.

This upfront payment is called ‘Margin Money’. It helps reduce the risk that the exchange undertakes and helps in maintaining the integrity of the market.

Once you have these requisites, you can buy a Futures and Options(F&O) contract. Simply place an order with your broker, specifying the details of the contract like the Scrip, expiry month, contract size, and so on. Once you do this, hand over the margin money to the broker, who will then get in touch with the exchange.

The exchange will find you a seller (if you are a buyer) or a buyer (if you are seller).

There is no upfront cost when entering into a futures contract. But the buyer is bound to pay the agreed-upon price for the asset eventually.

The buyer in an options contract has to pay a premium. The payment of this premium grants the options buyer the privilege to not buy the asset on a future date if it becomes less attractive. Should the options contract holder choose not to buy the asset, the premium paid is the amount he stands to lose.

In both cases, you may have to pay certain commissions.

Equity trading is simply buying and selling the shares. However, Futures and Options(F&O) are derivatives.

The term ‘Derivative’ itself indicates that it has no independent value. Here, the value of the derivate is entirely derived from the underlying asset.

A futures contract is executed on the date agreed upon in the contract. On this date, the buyer purchases the underlying asset.

Meanwhile, the buyer in an options contract can execute the contract anytime before the date of expiry. So, you are free to buy the asset whenever you feel the conditions are right.

Initial margin is defined as a percentage of your open position and is set for different positions by the exchange or clearing house. The factors that decide the amount of initial margin are the average volatility of the stock in concern over a specified period of time and the interest cost. Initial margin amounts fluctuate daily depending on the market value of your open positions.

Mark-to-Market margin covers the difference between the cost of the contract and its closing price on the day the contract is purchased. Post purchase, MTM margin covers the daily differences in closing prices .

As per the SEBI circular, starting October 2019, it is mandatory for all Stock Futures and Options to be physically settled. Index Futures and Options will be cash-settled. Physical settlements will be applicable only for Stock Futures and In-The-Money Stock Options. If a trader has an open position in Stock Future or In-The-Money Stock Option that has not been squared off on the expiry date, the contract will be physically settled. Read More