Options & Futures Margin Calculator

SPAN (Standard Portfolio Analysis of Risk) Margin is the minimum margin required by exchanges (NSE/BSE) to hold an F&O position overnight. It's calculated based on the worst-case loss scenario using sophisticated risk models. SPAN margin typically ranges from 8% to 20% of the contract value depending on the instrument's volatility.

Exposure margin is an additional margin charged by exchanges over and above SPAN margin as an extra cushion against potential losses. For equity F&O, it's typically 3% of the contract value. This margin is mandatory and is separate from SPAN margin. Total margin = SPAN Margin + Exposure Margin.

When you take opposite positions (like buying and selling options at different strikes), exchanges recognize the reduced risk and provide margin benefit. For example, in a Bull Call Spread (buy lower strike call, sell higher strike call), the maximum loss is limited, so margin requirement is significantly lower than a naked position. Margin benefit can be 60-80% in many spread strategies.

No, you don't need margin to buy options (calls or puts). You only need to pay the premium amount upfront. For example, if you buy 1 lot of Nifty 23500 CE at ₹150 premium, and lot size is 50, you need ₹7,500 (150 × 50) plus brokerage. Margin is required only when selling/writing options or trading futures.

Bank Nifty is more volatile than Nifty 50, which means higher risk and potential for larger price swings. Exchanges calculate margins based on volatility - higher volatility means higher margin requirements. Bank Nifty SPAN margin is typically 12-15% while Nifty is around 10-12%. Additionally, Bank Nifty has higher contract value which also increases absolute margin amount.

If you don't have sufficient margin, you cannot place the order - it will be rejected by your broker. If margin falls below required levels after taking a position (due to MTM losses), you'll receive a margin call to add funds. If you don't add margin, your broker can square off your position to limit risk. SEBI also imposes margin penalties ranging from 0.5% to 5% per day for shortfall, which can add up quickly.

For multiple positions, exchanges use portfolio-level margining. If positions are in the same underlying and form a recognized spread strategy, you get margin benefits. Use SPAN calculators on NSE/broker websites for accurate multi-leg strategy margins. Generally: Naked positions = Sum of individual margins, Hedged positions = Significantly lower due to portfolio margining benefits.

Intraday margin (MIS - Margin Intraday Square-off) is lower as positions must be squared off by end of day. Brokers typically offer 3-5x leverage for intraday F&O trades. Overnight margin (NRML - Normal) requires full SPAN + Exposure margin as you hold positions overnight, exposing them to gap risk and overnight volatility. Always use NRML margins for position planning to avoid surprises.

Margins are dynamic and can change daily based on market volatility. NSE/BSE review and update SPAN parameters regularly. During high volatility events (like results, policy decisions, global crises), exchanges can increase margins intraday. Brokers also have the discretion to charge higher margins than exchange minimums. Always check current margin files on NSE/broker websites before trading.

Yes! You can pledge your stock holdings as collateral margin with your broker. Approved stocks get haircut-based margin value (typically 50-85% of stock value depending on liquidity). This allows you to trade F&O without keeping cash idle. However, if your positions go against you and pledge value falls below required margin, you'll still need to add cash or stocks. Check your broker's approved collateral list and haircut percentages.