Create your portfolio and see exactly how much margin money required to construct it.
The margin calcualtion is carried out using a software called - SPAN® (Standard Portfolio Analysis of Risk).
List of symbols added in your portfolio
|EXCHANGE||CONTRACT SYMBOL/EXPIRY||EXCHANGE TYPE||STRIKE PRICE||QTY|
SPAN Margin is the minimum margin requirement blocked for futures and option contracts as per the exchange’s mandate. The Margin is calculated by the software - SPAN (Standard Portfolio Analysis of Risk) which is based on a sophisticated set of algorithms that estimates margin of each derivative position to its worst possible one-day move.
SPAN Margin is highly used across all stock exchanges globally to calculate margin money amount for an investor to cover potential losses.
SPAN Margin requirement varies for each security depending on various parameters mentioned below:
1. Select the Exchange you wish to trade on
2. Choose the product type - Futures or Options
3. Select the ticker symbol of the scrip you want to trade
4. Select the type of trade - Put or Call
5. Select the expiry date of your trade
6. Choose the strike price in case of Options
7. Enter the lot size of your trade
8. Calculate your SPAN Margin