Well, this is going to be one of the easiest answers for you to understand. When someone asks what is used margin in Zerodha, the meaning of it is quite literal.
It simply implies the margin that you have used for purchasing any equity, commodity, derivatives or a similar investment or a trading product using the Zerodha app.
For instance, if you had a trading account balance (or Available margin) of INR 10,000 and you placed a buy trade valued at INR 2000. Now, you are new Available margin becomes 8000 while the Used Margin would be INR 2000. If you place a sell trade worth the same value, the available margin will become INR 10000 (not counting brokerage and other charges).
The Used margin, however, would go back to 0.
Furthermore, there is a peculiar aspect about Used Margin in Zerodha (or in any of the trading apps).
If it is in a negative value, it implies that you are in profit. For instance, as shown in the screen below, the Used Margin in Zerodha value is INR -528.56. This implies that the trader is in a profit position of that amount.
Similarly, if this amount were INR 528.56, then the trader is at a loss-making position.
Hopefully, that was clear enough.
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