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SPAN MARGIN 

Algo's
Calculator
 White Label Solution for Brokers 

Build your portfolio and gain insight into the precise amount of margin funds needed for its construction.

The ALGO's Margin Calculator provides a detailed breakdown of all margin types necessary,

Including Exposure, and Net Premium.

We’ll get back to you shortly.

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What is SPAN Margin?

The span margin is the minimum amount stockbrokers must set aside to trade F&O contracts as mandated by the exchange and it's named after the risk analysis software program, SPAN.

 

The software calculates the span margin by factoring in various risk factors to account for potential adverse price movements in the underlying stock.

The span margin for security is not static but subject to fluctuations over time, contingent on prevailing market conditions.

How to use margin calculator?

  • Open the web browser and navigate to the Margin calculator link to access the margin calculator interface on your screen.

  • Choose a product from the dropdown menu, either Future or Option.

  • Choose the symbol (stock name) from the dropdown menu while calculating your margin.

  • Choose between the option types: Call or Put.

  • Choose the strike price when establishing an options position.

  • Choose between the buy or sell option.

  • Please click the "Calculate" button to determine the margin for the current position.

  • On the screen, you will find the span margin, exposure margin, and total margin broken down by contract.

  • Furthermore, the aggregate margin for all positions, including span, exposure, and net options, will be presented.

  • The screen will show the margin benefit associated with the hedge position.

Margin Calculator Pricing

First-Time Integration Charges
(Non Refundable)

₹ 1,00,000/-

+GST

Monthly Charges

₹ 20,000/-

+GST

A key points for those just starting with us

  • We will Integrate as per your requirements.

  • No integration charges for the first month.

  • Starting from the second month, charges will apply.

  • Billing will done on a quarterly basis.

  • 16.66% Discount will be given on annual payments (Pay for 10 month & get 2 months free)

  • We will make the integration according to your theme and requirements.

  • Where to Establish a Connection?
    Exchange has furnished a comprehensive list of IP addresses and Port numbers for the drop copy gateways that member systems need to connect to. For more details, please consult Exchange Circular 45703 dated September 15, 2020.
  • What is the SPAN margin calculator?
    The SPAN margin calculator aids traders in calculating the necessary capital for commencing a trade within. NSE equity derivatives, commodity derivatives, and currency derivatives segments prior to executing the transaction.
  • What is SPAN and SPAN margin?
    SPAN, short for Standard Portfolio Analysis of Risk, is calculated by the clearing corporation of exchanges. The SPAN Margin represents the initial margin collected by exchanges when a trade is initiated, and it operates on a portfolio-centric margining system.
  • What are margins in equity?
    In the realm of equity trading, margins are often denoted as leverage, enabling you to acquire stocks with just a portion of their full value. It's crucial to verify the current leverage regulations by consulting your broker, as these rules can evolve over time.
  • What is the Value at Risk (VAR) margin?
    The VAR margin serves as a risk assessment tool employed to gauge the likelihood of a decline in the value of a stock or investment portfolio. It takes into account variables such as confidence level, time frame, and the anticipated loss derived from historical price patterns and market volatilities.
  • What is the upfront margin?
    Upfront margin requires traders to allocate an initial margin on the trading day in order to engage in registered market segments. This comprises both the funds accessible in your trading account with your broker and shares that have been committed as collateral for margin-related activities.
  • What is the exposure margin?
    The exposure margin serves as an extra cushion placed atop the SPAN margin to accommodate potential Mark-to-Market (MTM) losses. The exchange determines both the SPAN and exposure margins, with the entire initial margin being held by the exchange at the commencement of a futures trade.
  • What is the difference between span margin and exposure margin?
    Both are essential to mitigate potential losses resulting from unfavorable market fluctuations. The SPAN margin represents the minimum margin necessary, and it can fluctuate periodically based on evolving risks and current market conditions.
  • Why is a margin needed in trading?
    Margin is a crucial concept in trading, particularly in the context of margin trading. Margin refers to the practice of borrowing funds to trade larger positions than what you could with your own capital alone. It's primarily used in various financial markets, such as stocks, commodities, and forex.
  • What is total margin?
    The formula you provided, "Total Margin = SPAN Margin + Net Option + Exposure.
  • What is the Extreme Loss Margin (ELM)?
    The Extreme Loss Margin is intended to provide protection for losses that could potentially exceed the scope of VAR (Value at Risk) margins.
  • What is peak margin?
    The peak margin represents the maximum margin that must be deposited in advance with the broker on a trading day. Even if you close out your entire position by the end of the trading day, you are still required to deposit the peak margin. The combination of span and exposure margins constitutes the initial margin that exchanges reserve in investors' accounts.
  • What is net premium margin?
    The net premium margin represents the overall expenses accrued when trading a combination of options, encompassing both puts and calls in diverse arrangements, while simultaneously engaging in their purchase and sale.
  • What is a ticker?
    A ticker symbol is a distinctive alphanumeric code used to identify a particular stock. To illustrate, Reliance's ticker symbol is "RIL.
  • How does the SPAN margin calculator work?
    The SPAN margin calculator evaluates the holistic risk associated with a collection of futures and options contracts within a portfolio. It takes into consideration various factors such as the underlying market price, volatility, and time until expiration. It establishes the margin requirement at a level that adequately safeguards against potential one-day losses.
  • Is the margin the same for equity and F&O?
    Equity trading is primarily associated with the cash market, which typically doesn't necessitate a margin for most trades. However, for intraday transactions, a margin of 20% of the trade's value is required. In contrast, F&O trading belongs to the derivatives segment, where margins are a requisite component for trade execution.
  • Would the margin requirement of a volatile asset be higher?
    The margin requirement is influenced by various factors, with the volatility of the underlying asset playing a significant role. Consequently, when the underlying asset exhibits a high level of volatility, the corresponding margin requirement will be elevated.
  • How and why do SPAN margins change?
    The primary determinant affecting profit margins is volatility. When prices experience significant fluctuations, SPAN margins are adjusted upwards, and as volatility diminishes, margins gradually return to their baseline levels.
  • Do I get margin benefit if I have positions on different underlying?
    No, margin benefit is available for positions on different underlying assets within the F&O segment.
  • Do I get margin benefit if I have positions in both futures and options on same underlying?
    Yes, a margin benefit is offered for positions held in both futures and options contracts with the same underlying asset.
  • Do I get margin benefit if I have counter positions in different months on the same underlying?
    Yes. In case of calendar spread positions margin benefit is provided. However, the benefit is removed three days prior to expiry of the near month contract.
  • Are VAR margins publicly available?
    Yes, Margin information is available for public access on the NSE (National Stock Exchange) website.
  • What is the margin required for option buying?
    Option buying necessitates the payment of the full premium.
  • What are the benefits of using a margin calculator?
    Margin calculators assist in calculating the necessary deposit required when trading with a broker. These tools consider multiple variables before offering a precise result. The insights generated by a margin calculator are invaluable for making informed decisions and foster enhanced transparency in the interactions between traders and brokers.
  • Would the margin requirement be higher for volatile assets?
    The margin requirement is influenced by several factors, with the volatility of the underlying asset playing a significant role. More volatile assets generally necessitate a greater margin.
  • What are the types of margins levied in the cash market segment?
    The cash market segment's margins consist of three distinct types: Value at Risk (VAR) margin Extreme loss margin Mark to market margin.
  • Who collects the initial margin for a trade?
    Your broker is responsible for collecting the initial margin. You must deposit the initial margin before taking any position in the market. Prior to entering any market position, you must deposit margin amount.
  • What is Spread benefits?
    When a trader implements a strategy that includes hedged positions, effectively lowering the overall portfolio risk through hedging, the margin requirement for the portfolio becomes less than the sum of the margins for each individual position. In essence, the spread benefit refers to the advantage of reduced margin requirements resulting from risk reduction at the portfolio level.
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