Brokerages

Zerodha

Introduction

QuantConnect enables you to run your algorithms in live mode with real-time market data. We have successfully hosted more than 200,000 live algorithms and have had more than $15B in volume traded on our servers since 2015. Brokerages supply a connection to the exchanges so that you can automate orders using LEAN. You can use multiple data feeds in live trading algorithms.

Zerodha was founded by Nithin Kamath in 2010 with the goal to break all barriers that traders and investors face in India in terms of cost, support, and technology. Zerodha provides access to India Equities for clients in India with no minimum balance required. Zerodha also provides a mutual fund investment platform and an interactive portfolio dashboard.

To view the implementation of the Zerodha brokerage integration, see the Lean.Brokerages.Zerodha repository.

Account Types

Zerodha supports cash and margin accounts.

SetBrokerageModel(BrokerageName.Zerodha, AccountType.Cash);
SetBrokerageModel(BrokerageName.Zerodha, AccountType.Margin);
self.SetBrokerageModel(BrokerageName.Zerodha, AccountType.Cash)
self.SetBrokerageModel(BrokerageName.Zerodha, AccountType.Margin)

Zerodha only supports trading Indian Rupees.

SetAccountCurrency("INR");
self.SetAccountCurrency("INR")

Create an Account

To create a Zerodha account, follow the account creation wizard on the Zerodha website.

You will need API credentials to deploy live algorithms with your brokerage account. After you open your Zerodha account, follow these steps to get your API credentials:

  1. Create a Kite Connect developer account.
  2. Create an app to get your access key.
  3. Make a POST request to /session/token with the request_token and checksum (SHA-256 of api_key + request_token + api_secret) and obtain the access_token.

For more information about the process, see the Login flow in the Kite Connect documentation.

Paper Trading

Zerodha doesn't support paper trading.

Asset Classes

Our Zerodha integration supports trading Indian Equities.

AddEquity("YESBANK", Resolution.Minute, Market.India);
self.AddEquity("YESBANK", Resolution.Minute, Market.India)

If you call the SetBrokerageModel method with the correct BrokerageName, then you don't need to pass a Market argument to the AddEquity method because the brokerage model has a default market.

Assets Available

Refer to the India Equities dataset to see the assets available.

Orders

We model the Zerodha API by supporting several order types, supporting order properties, and order updates. When you deploy live algorithms, you can place manual orders through the IDE.

Order Types

The following table describes the available order types for each asset class that Zerodha supports:

Order TypeIndia Equity
MarketOrdergreen check
LimitOrdergreen check
LimitIfTouchedOrdergreen check
StopMarketOrdergreen check
StopLimitOrdergreen check
MarketOnOpenOrdergreen check
MarketOnCloseOrdergreen check
MarketOrder(_symbol, quantity);
LimitOrder(_symbol, quantity, limitPrice);
LimitIfTouchedOrder(_symbol, quantity, triggerPrice, limitPrice);
StopMarketOrder(_symbol, quantity, stopPrice);
StopLimitOrder(_symbol, quantity, stopPrice, limitPrice);
MarketOnOpenOrder(_symbol, quantity);
MarketOnCloseOrder(_symbol, quantity);
self.MarketOrder(self.symbol, quantity)
self.LimitOrder(self.symbol, quantity, limit_price)
self.LimitIfTouchedOrder(self.symbol, quantity, trigger_price, limit_price)
self.StopMarketOrder(self.symbol, quantity, stop_price)
self.StopLimitOrder(self.symbol, quantity, stop_price, limit_price)
self.MarketOnOpenOrder(self.symbol, quantity)
self.MarketOnCloseOrder(self.symbol, quantity)

Order Properties

We model custom order properties from the Zerodha API. The following table describes the members of the IndiaOrderProperties object that you can set to customize order execution:

PropertyDescription
ExchangeSelect the exchange for sending the order to. The following instructions are supported:
  • NSE
  • BSE
ProductType A ProductType instruction to apply to the order. The IndiaProductType enumeration has the following members:
TimeInForceA TimeInForce instruction to apply to the order. The following instructions are supported:
  • Day
  • GoodTilCanceled
  • GoodTilDate
public override void Initialize()
{
    // Set default order properties
    DefaultOrderProperties = new IndiaOrderProperties(Exchange.NSE, IndiaOrderProperties.IndiaProductType.NRML)
    {
        TimeInForce = TimeInForce.GoodTilCanceled,
    };
}

public override void OnData(Slice slice)
{
    // Use default order order properties
    LimitOrder(_symbol, quantity, limitPrice);
    
    // Override the default order properties
    LimitOrder(_symbol, quantity, limitPrice, 
               orderProperties: new IndiaOrderProperties(Exchange.BSE, IndiaOrderProperties.IndiaProductType.MIS)
               {
                   TimeInForce = TimeInForce.Day,
               };
    LimitOrder(_symbol, quantity, limitPrice, 
               orderProperties: new IndiaOrderProperties(Exchange.BSE, IndiaOrderProperties.IndiaProductType.CNC)
               {
                   TimeInForce = TimeInForce.GoodTilDate,
               };
}
def Initialize(self) -> None:
    # Set the default order properties
    self.DefaultOrderProperties = IndiaOrderProperties(Exchange.NSE, IndiaOrderProperties.IndiaProductType.NRML)
    self.DefaultOrderProperties.TimeInForce = TimeInForce.GoodTilCanceled

def OnData(self, slice: Slice) -> None:
    # Use default order order properties
    self.LimitOrder(self.symbol, quantity, limit_price)
    
    # Override the default order properties
    order_properties = IndiaOrderProperties(Exchange.BSE, IndiaOrderProperties.IndiaProductType.MIS)
    order_properties.TimeInForce = TimeInForce.Day
    self.LimitOrder(self.symbol, quantity, limit_price, orderProperties=order_properties)

    order_properties = IndiaOrderProperties(Exchange.BSE, IndiaOrderProperties.IndiaProductType.CNC)
    order_properties.TimeInForce = TimeInForce.GoodTilDate
    self.LimitOrder(self.symbol, quantity, limit_price, orderProperties=order_properties)

Updates

We model the Zerodha API by supporting order updates.

var ticket = LimitOrder(_symbol, quantity, limitPrice);
var updateSettings = new UpdateOrderFields();
updateSettings.LimitPrice = newLimitPrice;
ticket.Update(updateSettings);
ticket = self.LimitOrder(self.symbol, quantity, limit_price)
updateSettings = UpdateOrderFields()
updateSettings.LimitPrice = new_limit_price
ticket.Update(updateSettings)

Fees

We model the order fees of Zerodha with its Equity Intraday fee structure. The following table shows the fees:

Charge ItemFee
Brokerage Fee₹20 per trade or 0.03% (whichever is lower)
Exchange Transaction Charge0.00345%
Securities Transaction Tax0.025%
Goods and Services Tax18%
SEBI Charges0.0001%
Stamp Duty0.003%

To view the latest fees, see the Charges page on the Zerodha website.

Margin

We model buying power and margin calls to ensure your algorithm stays within the margin requirements.

Buying Power

Zerodha allows up to 5x leverage for margin accounts, but the amount of margin available depends on the Equity and product type. To check the amount of margin available for each asset, see the Margin Calculator on the Zerodha website.

Margin Calls

Regulation T margin rules apply. When the amount of margin remaining in your portfolio drops below 5% of the total portfolio value, you receive a warning. When the amount of margin remaining in your portfolio drops to zero or goes negative, the portfolio sorts the generated margin call orders by their unrealized profit and executes each order synchronously until your portfolio is within the margin requirements.

Slippage

Orders through Zerodha do not experience slippage in backtests. In live trading, your orders may experience slippage.

Fills

We fill market orders immediately and completely in backtests. In live trading, if the quantity of your market orders exceeds the quantity available at the top of the order book, your orders are filled according to what is available in the order book.

Settlements

If you trade with a margin account, trades settle immediately. If you trade with a cash account, Equity trades settle 3 days after the transaction date (T+3)

security.SettlementModel = new ImmediateSettlementModel();
security.SettlementModel = ImmediateSettlementModel()

Security and Stability

When you deploy live algorithms with Zerodha, we don't save your brokerage account credentials.

Deposits and Withdraws

You can deposit and withdraw cash from your brokerage account while you run an algorithm that's connected to the account. We sync the algorithm's cash holdings with the cash holdings in your brokerage account every day at 7:45 AM Eastern Time (ET).

Demo Algorithm

The following algorithm demonstrates the functionality of the Zerodha brokerage:

Deploy Live Algorithms

You must have an available live trading node for each live trading algorithm you deploy.

Follow these steps to deploy a live trading algorithm:

  1. Open the project that you want to deploy.
  2. Click the Deploy Live icon.
  3. On the Deploy Live page, click the Brokerage field and then click Zerodha from the drop-down menu.
  4. Enter your Kite Connect access token and key.
  5. To get your access token and key, see Account Types. Your account details aren't saved on QuantConnect.

  6. Click the Product Type field and then click one of the following options from the drop-down menu:
  7. Product TypeDescription
    MISIntraday products
    CNCDelivery products
    NRMLCarry forward products
  8. Click the Trading Segment field and then click one of the following options from the drop-down menu:
  9. Trading SegmentDescription
    EQUITYFor trading Equities on the National Stock Exchange of India (NSE) or the Bombay Stock Exchange (BSE)
    COMMODITYFor trading commodities on the Multi Commodity Exchange of India (MCX)
  10. Click the History Subscription field and then click Yes or No from the drop-down menu.
  11. Use this field to declare whether you have a history API subscription on your Kite Connect account.

  12. Click the Node field and then click the live trading node that you want to use from the drop-down menu.
  13. (Optional) Set up notifications.
  14. Configure the Automatically restart algorithm setting.
  15. By enabling automatic restarts, the algorithm will use best efforts to restart the algorithm if it fails due to a runtime error. This can help improve the algorithm's resilience to temporary outages such as a brokerage API disconnection.

  16. Click Deploy.

The deployment process can take up to 5 minutes. When the algorithm deploys, the live results page displays.

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