1. What is Zerodha Margin Calculator for Options?

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

Purpose: It helps traders understand the capital requirements before placing options trades.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Margin — Total margin requirement (₹)
• Premium — Option premium amount (₹)
• SPAN — Standard Portfolio Analysis of Risk margin (₹)
• Exposure — Additional exposure margin (₹)

Explanation: The total margin is the sum of these three components as per Zerodha's margin policy.

3. Importance of Margin Calculation

Details: Proper margin calculation ensures you have sufficient funds in your account to place trades and avoid margin shortfall penalties.

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 visible in Zerodha's margin calculator or Kite platform before placing orders.

Q2: Does this calculator work for all option types?
A: Yes, it works for both call and put options, but margin requirements may vary.

Q3: Why does Zerodha charge SPAN + exposure?
A: SPAN covers potential losses, while exposure margin is an additional buffer during volatile markets.

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

Q5: Is there any way to reduce margin requirements?
A: Using margin benefits or trading strategies with lower risk profiles can reduce margins.