Equity Margin Calculator

About Margin Calculator

A margin calculator helps you understand how much money you need to trade in futures and options. It calculates:

  • SPAN Margin: Risk-based margin calculated by exchanges
  • Exposure Margin: Additional safety margin
  • Total Margin: Combined SPAN + Exposure margin
  • Leverage: Trading power provided by margin

Margins are dynamic and change based on market conditions and volatility.

How It Works
SPAN Margin:

Calculated based on portfolio risk using Standard Portfolio Analysis of Risk methodology.

Exposure Margin:

Additional margin to cover risks not captured by SPAN, typically 1-5% of contract value.

Total Margin:

SPAN Margin + Exposure Margin = Total margin required to trade.

Trading Tips
  • ✓ Higher volatility = Higher margin requirements
  • ✓ Selling options requires more margin than buying
  • ✓ Futures generally need higher margins than options
  • ✓ Keep extra margin buffer for adverse movements
  • ✓ Monitor margin utilization regularly

Frequently Asked Questions

SPAN (Standard Portfolio Analysis of Risk) is a risk-based margin calculation system used by exchanges to determine the maximum potential loss that a portfolio can experience. It's calculated using sophisticated algorithms that consider various market scenarios and price movements.

Exposure margin is an additional margin charged over and above the SPAN margin to cover risks that are not captured by the SPAN calculation. It's typically a percentage of the contract value and acts as a safety buffer against extreme market movements.

Margin requirements are dynamic and can change daily based on market volatility, price movements, and risk assessment by exchanges. Higher volatility periods typically result in increased margin requirements to manage risk effectively.

Different segments (NSE F&O, MCX, NCDEX) have varying margin requirements due to differences in underlying asset volatility, liquidity, contract specifications, and regulatory requirements. Commodity markets typically have different risk profiles compared to equity derivatives.

If you fail to maintain adequate margins, your broker may issue a margin call, requiring you to deposit additional funds. If margins are not maintained, your positions may be squared off automatically by the broker to limit risk exposure, potentially resulting in losses.

Understanding Equity Margin Trading in India

Equity margin trading allows investors to leverage their positions by borrowing funds from brokers to trade in financial markets. Our comprehensive margin calculator helps you understand the SPAN (Standard Portfolio Analysis of Risk) margin and exposure margin requirements for various trading segments including NSE F&O, MCX commodities, and equity cash markets. The calculator provides real-time margin calculations based on current market conditions, helping traders make informed decisions about their capital allocation and risk management strategies.

Whether you're trading Nifty futures, Bank Nifty options, or commodity contracts, understanding margin requirements is crucial for successful trading. Our calculator considers factors like contract value, volatility, expiry dates, and instrument type to provide accurate margin estimates. This tool is particularly useful for intraday traders, positional traders, and those implementing complex trading strategies involving multiple positions and hedging techniques.