1. What is a F&O Margin Calculator?

Definition: This calculator estimates the margin required for Futures and Options (F&O) trading based on contract value and margin percentage.

Purpose: It helps traders determine how much capital they need to maintain for their F&O positions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Margin amount (currency)
• \( CV \) — Contract value (currency)
• \( MP \) — Margin percentage (%)

Explanation: The contract value is multiplied by the margin percentage (divided by 100) to calculate the required margin.

3. Importance of Margin Calculation

Details: Proper margin calculation ensures traders maintain sufficient funds to cover potential losses and meet exchange requirements.

4. Using the Calculator

Tips: Enter the contract value, margin percentage (typically set by your broker or exchange), and select your currency. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical margin percentage for F&O?
A: Margin percentages vary but typically range from 10-30% depending on the instrument and broker requirements.

Q2: How do I find the contract value?
A: Contract value = Lot size × Current price. Check your broker platform for exact contract specifications.

Q3: Does this include SPAN margin?
A: This is a basic calculator. Actual margin requirements may include SPAN and exposure margins which vary by exchange.

Q4: Can I use this for intraday trading?
A: Yes, but intraday margins are typically lower than overnight margins. Check with your broker for exact rates.

Q5: Why does margin requirement change?
A: Margins change based on market volatility, position size, and exchange regulations.