1. What is Groww Option Margin Calculator?

Definition: This calculator estimates the total margin required for options trading on Groww platform.

Purpose: It helps traders understand the total funds needed to cover premium, SPAN, and exposure margins for their options positions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Margin — Total funds required (₹)
• Premium — Option premium paid/received (₹)
• SPAN — Standard Portfolio Analysis of Risk margin (₹)
• Exposure — Additional margin for extreme moves (₹)

Explanation: The total margin is the sum of these three components, which are required by exchanges to cover potential risks.

3. Importance of Margin Calculation

Details: Proper margin calculation ensures traders maintain sufficient funds in their account to cover potential losses and avoid margin calls.

4. Using the Calculator

Tips: Enter the premium amount, SPAN margin, and exposure margin values in rupees. All values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find SPAN and exposure values?
A: These are provided by your broker (Groww) and can be found in the contract details or margin calculator on their platform.

Q2: Is the margin same for all options?
A: No, margin requirements vary based on strike price, volatility, and market conditions.

Q3: Do I need to pay margin for both buying and selling?
A: Buyers typically only pay premium, while sellers need to maintain margin for the entire contract duration.

Q4: How often do margin requirements change?
A: SPAN margins are updated daily, while exposure margins may change based on market volatility.

Q5: What happens if I don't maintain margin?
A: Your broker may square off positions to meet margin requirements, potentially at a loss.