Margins have to be paid to the stock exchange upfront and is collected by the broker. When you buy or sell, equities, futures or options, there is a risk that prices may move against you. This margin is collected as a protection against such adverse price movements. The margin calculator tells you exactly how much margin needs to be paid for buy or sell positions in equities, futures and options. For your convenience, this margin calculator variously acts as your equity margin calculator, SPAN margin calculator, futures margin calculator and options margin calculator. It is like an all-in-one answer to all your margin queries.
You can even use the NSE margin calculator or the NSE F&O margin calculator but the intent here is to simplify to your requirements. The margin calculator tells you how much of margin money you need to be prepared with. Whether it is an options margin calculator or an equity margin calculator, the underlying theme of all these margin calculators is volatility. Greater the volatility, higher the margins.
What is Margin Calculator
The margin calculator gives you a quick and comprehensive view of how much margin you need to pay upfront before getting into a trade. These margins include the Value-at-risk or VAR margins, Exposure Margins, Extreme Loss Margins (ELM), Special margins etc.
The option margin calculator will tell you that when you buy options there is the premium margin and when you sell options, there is the net-premium margin. In the case of futures & options, the SPAN margin calculator tells how much SPAN + exposure margins to pay.
How to calculate Margins
In the margin calculator, you only need to input the desired position (long/short), the name of the stock / contract and whether it is buy or sell. The calculations of VAR margins, SPAN margins, ELMs, exposure margins is all done by the margin calculator.
India Infoline margin exposure
Collection of VAR and exposure margins is mandatory as per SEBI regulations. You can speak to your broker for best exposure you can avail on the margins paid upfront.
FREQUENTLY ASKED QUESTIONS (FAQs)
What is SPAN margin?
SPAN (Standardized Portfolio Analysis of risk) margins is the minimum required margin for buying or selling futures as well as for selling options and are specified by exchange. SPAN margins are not applicable on buying options, since only premium margins are charged.
What is exposure margin?
Exposure margin is collected over and above the SPAN margins for F&O transactions to take care of any short term MTM losses. Now, this also has to be mandatorily collected, unlike in the past when this was optional at the discretion of the broker.
Why do you need margin?
Margin collection is a form of risk management in case price movement is adverse and the trader has problems making good the loss. Brokers monitor margins real time.
What is total margin?
As the margin calculator would tell you, total margin is the sum total of all applicable margins. The margin calculator gives you the total margin as well as the break-up. With the margin calculator you can simulate likely margins needed for a single position as well as for multiple positions.
Who collects SPAN and Exposure Margins?
The SPAN and Exposure margins are collected by the broker on behalf of the exchange and deposited with the clearing corporation.
How can SPAN margins be paid?
Traders / investors will have to pay SPAN margins upfront, so trading account has to be funded accordingly. The exchange will hold the applicable net margins at the broker level from the broker deposit.