Margin Calculation Formula:
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Definition: This calculator computes the total margin required for F&O (Futures and Options) trading on NSE (National Stock Exchange) based on SPAN and Exposure margins.
Purpose: It helps traders determine the capital required to hold F&O positions as per NSE requirements.
The calculator uses the formula:
Where:
Explanation: SPAN margin covers 99% of potential losses while exposure margin covers extreme market movements.
Details: Proper margin calculation ensures compliance with exchange requirements and helps traders manage risk and capital allocation.
Tips: Enter the SPAN and Exposure values in INR as provided by your broker or exchange. Both values must be ≥ 0.
Q1: Where do I find SPAN and Exposure values?
A: These are typically provided by your broker or can be calculated using exchange-provided tools.
Q2: Does this include all margin requirements?
A: Yes, this includes both SPAN and Exposure margins which constitute the total margin requirement.
Q3: How often do margin requirements change?
A: Margin requirements are updated daily by the exchange based on market volatility.
Q4: Is this calculator applicable for all F&O contracts?
A: Yes, but margin requirements vary by contract - always verify with current exchange data.
Q5: Can I use this for intraday margin calculations?
A: This calculates overnight margins. Intraday margins may differ based on broker policies.