Span Margin

As required by the exchanges, will the exposure and initial margin be charged same?

Exchange allows members/brokers to collect margin above and beyond the minimum Initial & Exposure margins they have set. Based on Kotak Securities' internal risk policy, the margin requirement may be higher than the minimum.

Even after squaring up few positions, why has my margin requirement increased?

Margin requirements are usually reduced if any position is closed/squared-off. If one side of a hedged position is not squared off fully or partially, it can result in an increase in Margin requirements for existing positions/Open Orders.

If my hedging option is open, how will I get Span margin?

Hedge benefits will not be available if there are few F&O orders for the same underlying. Partial benefits will however be available if these orders are only partially traded.

What is the reason behind that for each F&O position, the Span margin doesn’t sum up for the final margin charged for that underlying?

SPAN/Initial Margin is calculated at portfolio level. If there are multiple positions, such that only a few positions are internally hedged, the overall margin will be LESS than the sum of all positions. Spread benefit for the respective underlying will …

Where to check what kind of margin is applied?

The same will be indicated on the Open Position page under "margin type" In cases where SPAN is used as the margin type, the margin will include Initial and Exposure margins.

In NSE , does Span margin calculated on all equity F& O positions for all products?

SPAN margin does not apply to products such as Super Multiple in Futures & Options. If there is a position in the Normal category and a hedged position to the normal situation is under Super Multiple Futures/ Options, then SPAN …

Can Span margin be applied on all segment?

SPAN margin is currently calculated only for F&O positions within Equity Derivatives segment of NSE. The currency and commodity derivatives segments are not included. SPAN margin does not include positions in the Cash segment.

If I have counter position on different month on same underlying, will I get margin benefit?

Yes. Margin benefit is available for calendar spread positions. Spread margin benefits are terminated if any position expires. In such cases, the margin requirement could increase. After the expiry of the next month contract, the said benefit will be removed.

If I am holding positions for both future & Options on same underlying, will I get margin benefit?


If I am holding positions in different underlying , do I get margin benefit?


During the day, does the requirement change for Span/Initial margin?

Yes, the SPAN margins can be revised six times per day: once at the start of the day, four times during market hours, and finally at the end. Margins will be higher if volatility is high. To avoid margin calls, …

What does Exposure margin mean?

Additional to initial margin (SPAN), exposure margin is also collected. According to the most recent exchange circulars, net buy premium, delivery margin and exposure margin are mandatory.

What does SPAN margin mean?

SPAN margin is required by exchanges in F&O segment. It is calculated using a portfolio, which is a collection of options and futures positions. SPAN(r), a standard portfolio analysis of risk software, is used to calculate the margin. This product …