Frequently Asked Questions


What is Margin Calculator?


A margin calculator is an online tool to calculate the required margin for F&O trading. You can use it to calculate the margin for buying or selling options.

What is Margin for F&O?


Margin is the amount deposited with the broker while buying or selling futures and options contracts. It serves as a security deposit.

How is Margin Calculated?


Margin is calculated by subtracting the total cost of assets from the total value of assets. Total cost of securities is the amount at which you buy the assets. Total market value of securities is the amount you could sell assets at the existing market price.

What is the Span Margin Requirement and how is it measured?


Standard Portfolio Analysis of Risk (SPAN) margin is the minimum amount of funds required to place an order. It is calculated using a risk array that determines the gains or losses for each contract under various conditions. The method takes into account profits or losses, volatility, and decrease in expiration time.

What is the margin requirement to transact in the cash market?


Margin requirement to transact in the cash market is the money an individual has to pay upfront to buy or sell securities in the cash segment. The amount of margin usually depends on the type of security, broker and the concerned stock exchange.


What is the calendar spread margin for F&O?


The calendar spread strategy involves buying and selling derivative contracts of the same underlying asset but with different expiration dates.