uTrade AlgosWhen you’re trading in futures and options (F&O), understanding SPAN and exposure margins is essential. Together, these two margins make up the total margin you need to maintain to enter and hold a position. At Share India, we make this easy for you by offering a simple online margin calculator to help you figure them out quickly.
What is SPAN Margin?
SPAN stands for Standard Portfolio Analysis of Risk. It’s the minimum margin you’re required to maintain to take a position in F&O trades. This is calculated using a risk-based model that considers:
- Market volatility
- Your position type (long or short)
- Worst-case scenarios based on historical price movement
In Indian markets, the SPAN margin is also called the VaR (Value at Risk) margin, and it’s mandated by the exchange. It ensures you have enough funds to cover your position based on the risk profile of your trade.
So, think of the SPAN margin as the first layer of protection for your trade.
What is Exposure Margin?
While the SPAN margin covers the core risk, the exposure margin acts as a safety buffer on top of that. It’s an additional margin charged to safeguard against unexpected market movements—like sharp swings or sudden price gaps.
Both SPAN and exposure margins are meant to protect your trades from risk.
How Can You Calculate SPAN and Exposure Margins?
You don’t need to do the math yourself. Share India provides a simple online margin calculator to help you calculate both SPAN and exposure margins instantly.
Access the Share India Margin Calculator here:
Here’s how to use it:
Understanding SPAN and exposure margins helps you trade more confidently and avoid any disruptions due to margin shortfalls. And with Share India’s calculator, checking these margins is quick, reliable, and beginner-friendly.
For any assistance, you can contact the Share India support team via email at support@shareindia.com or by phone at 1800 203 0303.