Total Margin is the margin required to hold the position overnight or also called NRML margin at Zerodha. If you use the product type as MIS instead of NRML while placing an order you will get additional leverage only for intraday trades.

Calendar spread is a spread trade involving the simultaneous purchase of futures or options expiring a particular date and sale of the same instrument expiring another date or vice versa. Since the position is completely hedged there is a margin benefit for the combined position, as shown in the example below for a calendar spread between Nifty Nov and Nifty Dec futures.

Total Margin is the margin required to hold the position overnight also called NRML margin at Zerodha. When you write options the margin required varies based on the underlying, volatility, expiry and more. Until now there was no other online tool that could tell you the margins required before taking a trade, very important for an active option trader. The example below shows the margin required for shorting 1 lot of Nifty Dec Calls.

Do note that you need to click on Sell after entering the net quantity if you want to see the option writing margin requirement. It works the same way for both equity and currency options. The margin required for such a combined position could be less than sum of individual margin requirements if the positions hedge each other, like in the calendar spread example above.

Knowing the margin requirement upfront for such a position is very important to better plan the trade. See the example below for calculating the margin requirement for an Iron Condor Strategy on Nifty. Zerodha Margin Policy can change any point of time based on risk and market volatility.

Love playing poker, basketball, and guitar. I found margin requirement in zerodha absurd once I asked that I need to buy spread of nifty call option and they were asking for the full margin for the short leg, just giving the benefit of the option premium.

Shashank, the SPAN and exposure margin requirement is set by exchanges and not us. It is the same across all brokers. Thanks for your reply, but is it not possible to implement some system where its checks the margin requirement when somebody takes the position and when someone square it off as well?

And I have one more question, If I buy nifty future and sell a call why the span calculator Shows margin requirement for both the positions? Hi Nithin, I was hoping to get an answer from you on the above query. Please clarify at least, why I need to put margin separately for shorting a call option if I hold a long position in Nifty? In this case if I am long nifty and shorting call than the margin should be max margin for long nifty, margin for short call.

If you think its not correct please explain. The second thing is the margin required for MIS and BO are same for selling OTM INDEX option. Why No Reduction in margin? Plesae rectify and solve the problem asap. The client has to pay the margin because Mr. Nithin is a price maker and we clients, both as price takers and risk takers have to come up with the margin to back up our hunch.

The margins are decided by the Exchange and levied by them. Then why are you not updating your Zerodha margin calculator tool?? When I checked for the margin requirement to sell a currency option OTMit shows only RS for one lot in BRACKET ORDER. OTM currency options are always having higher liquidity.

Usually Margin required to sell a currency option is for Normal and for intraday MIS. So, if it is only RS for Bracket Order it will be more benefitable. Also options of stocks like SBI, MARUTI, RELIANCE are highly liquidable. The last point is I require more margin for BOonly for the expiry day. So please do the needful. What will be the margin required for selling a far away OTM banknifty option in MIS and in BO on expiry day??

There will be stop-loss 5 points… Please reply personally, As if I check in your Zerodha margin calculator the answer will not practically applicable. The leverage given is standard to all our clients. Are these margins applicable only for those who have opted for zerodha trader or also for those who use nse now? I was trying the SPAN margin calculator for ICICI Bank OCT futures. While SPAN calculator shows a margin of Rs.

We have discussed this some time ago last month also. Just wanted this to bring to your notice. I have attached the screen shots.

Ranjan, looks like you checked this midnight when our end of day process was running. SPAN and margin calculator will match with what is on the trading terminal. I had checked this around midnight yesterday. Have checked now again and this seems to be working fine now. Suppose I deposited Rs. This gives a free cash of Rs. Now if there is a MTM loss of Rs. What I noted from one of my transactions is this gets adjusted against the free cash. What I was under the impression is that, MTM losses would be adjusted against the exposure margin first and when total margin falls or nears to SPAN one will get a margin call I had refereed varsity section-futures trading, mark to market chapter.

My query primarily is if there is sufficient free cash and all mark to market adjustments are done on it, one may never get a margin call and would end up accumulating losses if the position is not tracked properly.

The MTM loss will be adjusted from the free cash, and it will start biting on your exposure margin only once all free cash is exhausted. Yes, if you keep some cash as buffer, u will never get a margin call. So, for MTM, you first adjust with free cash and then with exposure margin. And once exposure margin has become 0, automatic square off will happen. So effectively you never touch the span margin? PLZ HELP ME SIR. I just want to know when will you introduce cover orders in commodity.

Does ZERODHA has similar service available for the customer? Zerodha has something better. We have two extra leverage margin order types: MIS — Margin Intraday Squareoff — You get 3 to 10 times exposure for intraday trading. CO — Cover Order — More information is available in this article. For example, if i refer your SPAN calculator for say LTAug,I note that Rs. Now if i refer the link https: This appears higher than what other brokers e.

Request you to first clear the ambiguity on the SPAN calculator and the link i provided above. Secondly, please correct me if I am wrong on saying that the said brokers require less margin.

I see LT Aug futures margin same on SPAN and futures link. Nithin, Thanks for your reply. Yeah, Now if i see both links throws the same margin of Rs. I know for sure that ICICI Sec takes around However, I appreciate Zerodha giving higher leverage on intraday basis.

Finally, your views on the minimum lot size increased by SEBI recently? More than that, our RMS team can square off the position. You will have to maintain in trading account.

Yep, probably the best reporting tools in Q and Quant: I am new to this world and just had the curiosity. SPAN charged by exchange almost same for every exchange. So yeah, total margins should be more or less the same with ICICI.

If you are starting off, advise you to check out: I will definitely go through the link provided by you. I just wanted to highlight that ICICI have two types of margin system 1. I am not sure if there is any catch here. Had I been mapped to SPAN, I would have needed around Rs.

I have asked them to explain the difference and await their reply. Appreciate your efforts and time to reply directly. Have read about you on many platforms and your journey has been inspirational. So, in effect margin blocked is same as in normal SPAN system guided by the exchange and followed at Zerodha. Is it possible to enter one order that cancels other if executed.

For example I am long Nifty future at and want to place an order at as my stop loss. This is fine and does not involve any additional margin But I also want to book profit if it moves to say If I enter another order for selling at it requires additional margin.

Is there any way to do this? Check this blog on margin required for 2 exit orders for 1 position. If you are trading futures, you can place both SL and target order without requiring additional margin. If we can buy pls provide me the link to check margin requirement for buying call options of shares for intraday.

Varun for buying options there is no concept called margin. So if lot size is and premium is Rs 10, you will need Rs to buy this. Do we need pay separately for buying positions? Yes, it is for shorted positions. Buy options will be separate, as they are not categorized as margins. Dear Sir, This is my first query post on the blog, I do not know whether this is right place to post or notas i have seen Mr. Kamat sir explaining to lot of fellow tradersSo I hope that I will get chance to interact with Mr.

Nitin Kamath sir …. Short call GBP futures with 5 lots at the same time on GBP FEB contract — 13, Margin as per span calculator. At which of the following margin value, Zerodha will Automatically cut square off both positions if the margin gets touched.

OR C If both above are wrong, what is the required margin which MUST always be present so that the position does not get squared off because of touch to margin. Dear sir I would like to request you to answer in exact figures This makes lot of difference to my trading.

Yes, out of 30, gets blocked for your long GBP position and the rest which is is free balance. You have forgotten to mention which strike price of GBP Calls feb contract you are shorting, But anyways:. If we let you a hold a position overnight, with money lesser than the SPAN requirement in your examplethe exchange penalizes you for this. So if SPAN required isaround Rs when your account balance comes down from to is probably when our RMS team will start reducing your position.

But that said, we understand such completely hedged positions, and are pretty lenient with it. Thank you so much sir your answer clears lot of my queries … I have complete confidence on Zerodha. GBP long 5 lots Jan My bad Mayuresh, when you had mentioned Short call GBP futures, I thought you were referring to call options, and hence asked you for the strike price. Options trading is allowed only on USDINR in currency.

Coming back to your query, when you take such a position, buy 1 month future, and sell another, it is called a Calendar spread. Such a position is completely hedged, and hence has hardly any risk. Hi Nithin, Many of the features of Nest Trader PC are not available on Mobile Android. Is there any upgrade planned? There should be a new release in the next 10 days.

The SPAN calculator is a web app, you can use this on any browser though, here is the link: Hi, The SPAN Calculator is indeed an excellent tool, thanks for that. I have a doubt while shorting the options. As you mentioned in the example, while shorting the option effectively only gets blocked, so can we short an option with just in our account or do we need the whole amount first and then after position is taken, we are refunded?

Also, if we short the option using MIS, how much of the total margin amount is premium receivable? Hi Waman, You would need the to take the trade, but once you take the trade the premium gets credited to your trading account, effectively blocking only around 18k. Hi Nithin, Could you explain the rationality why the margin is higher than maximum possible loss on hedged position for the below example.

I think in US markets, the margin charged on hedged positions is equal to the maximum possible loss. Sell Jan Call atand Buy Jan Call at 78, for a credit of 54 points. In-spite of the above, the actual total margin charged is 21, comprising of Span margin: Peter, we do not give you any leverage on buying options. Options are very complex financial instruments and giving leverage on the buy side could put you and the broker in jeopardy. Intraday margins are provided only for EQ, Futures, and Commodities.

We also provide intraday margins for Option writing as per the futures margins. Is it application bug then? It is not a buy, the reason we show buy options there is because, for example if you buy futures and buy put options, the margin for futures reduces since the risk is hedged. That is why we give an option for you to add buy option position in SPAN calculator. New BO coming up very soon you should be pleasantly surprised, new trading application also will be up soon.

I tried exploring Span calculator but the page was not properly displaying eventhough i tried refreshing several times and it did not work on IE and chrome browsers.

Is there any issue now 29 Jan My another question is: Spread Margin N Month 1. There is some glitch on the calculator, we just spotted this after you pointing out. We will have this fixed at the earliest. For knowing how much margin required for FEB futures, you can either use the SPAN calculator or the futures margin calculator. Give it a little time, it should start working, our techies are at work.

This is done Akash, you can see the margins for interest rate futures here: It seems to be working alright, Choose NFO, options, Symbol as Nifty Feb, Option type as calls or puts, mention the strike asNet quantity as 50, tick on the sell option, and click add. Dear Nitin, SPAN Calculator is not working.

No doubt It is very important and useful tool. It would be great if the SPAN page for options is made something like this; http: Can I use my existing stocks Purchased for long term as collateral for margin requirements? How do I do it? As soon as you do it, the margin after haircut will be released to your trading account. Anand it is working fine on google chrome, some issue with firefox, and internet explorer. Muthu, in futures and options, your turnover is not the margin turnover but your entire contract turnover.

Total Transaction charges include exchange charges and clearing charges. Nitin, Thank you for the reply. This is with reference to your brokerage calculator. Why is the charge so high for the option segment alone? For options, the transaction charge is on premium turnover, whereas on futures and equity it is on the total turnover.

For example when you would have done a turnover of Rs in options, it could mean for example buy and sell of 20 lots of Nifty options trading at Rs Whereas a turnover of 8. For futures it is 0. I cant trade during live markets…. I am sure i have placed orders at similar prices, quantity earlier with no issue…please do the needful…. We have put a restriction on order size for AMO orders, what is the size of each of the orders you are placing?

The margin calculator does not have all the contracts for Commodities. Lead, Zinc, Gold Petal, etc are missing. Pls look into the issue. Sibi sorry for the previous reply, yesterday there was an issue from the exchange end, and all AMO orders with SL-M had gotten rejected. There is no such restriction on your account, you can try placing it again tomorrow. No Renjith, this is not allowed by the exchanges and the regulators.

Only way is to take a payout and then payin. Suppose Feb option series is going on and I want to write an option having expiry in the March series. If I am the first person writing a specific contract example SBI call option of strike price with the expiry of March. Then who all will decide the premium I will collect for writing this option. If you put a price and no one buys, you will probably have to then modify the price lower, until someone buys.

That is how price discovery works. I guess someone has already replied you an answer to this. It is best not to put up your client ID, so am deleting it from your query. STRIKE QTY SPAN EXPOSE TOTAL C 50 S P 50 S C 50 B P 50 B TOTAL My question is that i have requirement fund only Rs.

Margin required to set this up will not be more thanyou can use the SPAN calculator to see how much is required to first sell CE and then check for PE. You will get to know the individual margins required. No not possible for your second query. I came across this website only recently, and it is really impressive the work you guys are doing. Please keep up the good work. I am not sure if this is the right place to ask this, but I have a question about margin calculations. If I buy an at-the-money NIFTY put and a NIFTY future, both with same expiry, say April I then sell an ATM NIFTY call with same expiry.

I am essentially trying to setup a put-call-futures parity condition, which is a hedged position. I expect the margin for such a position to be significantly low, but when I calculate the same using the SPAN calculator, I get the total margin for this position as Rs.

Can you please explain why the margin should be so high even for such a hedged position? When i try to calculate the exposure required to buy an in the money option eg. When you buy an option, there is no SPAN margin, disregard if it is showing negative, we will have it fixed today. Total margin is the money required for holding this position, which in your case shows 6. But the challenge would be entering this position, as the spread benefit will come into play only once the position is taken.

So while entering individual positions, you might be asked for higher margin, but once both the position is taken, margin required drops because they would be hedging each other. In the SPAN calculator, i have entered sell PE MAY units and the margin requirements are: SPAN Margin — 52, Exposure Margin — 32, Premium receivable — 20, Total Margin — 84, When i enter the contract i.

IF the above answer is Rs. Finally, if the above transaction is MIS then how much of margin will be required to execute the trade? You need 2.

Once you take the position, the premium receivable is credited to your account, so your account balance will start showingbut margin blocked will be 3. However, in reality, the premium credited will be based on the price at the time of entering into a contract correct?

HiIf I write in deep Out of Money Options, margin requirement is huge. I Sell PUT 1 Lot of Strike Price at 10Rs premium each. Now Lets say I make another trade, I Sell CALL 1 Lot of Strike Price at 10Rs premium each. It needs additional Margin of Rs. Making total margin of 43, for trades. Its getting simple summed up. Hi i am one of the Zerodha user and want to know that 1.

How the contract value in options are matched on expiry? Is it matched with the rate quoted by the buyers? All options on expiry is settled based on the underlying price.

Either i am missing something or there is an issue with the system — i am not able to add multiple positions and see the span requirements for them.

Each time i add a new position, instead of adding it to the position i had earlier selected, it is replacing the previous position i had entered. Is there something wrong in what i am doing?

Also i dont see a calculate button which i can use to show the combined margin blocked for all my positions once i have entered their details. Sukesh, seems to be working fine, which browser are you using? When you add it automatically calculates, so there is no calculate button. Yes you can and your margin requirement is lower because your positions are hedged. Add values on the SPAN to check how much it gets lowered. No NS, you get a margin benefit for taking a hedged position, but the benefit is not to that extend.

Add the contracts yourself and see. Seems there is some problem. No Mohan, we are legally not allowed to let you trade on MCX using funds in equity or vice a versa. Hi Nithin, For Calendar Spreads, what your span tool is showing, i can get a handsome amount of margin benefit in case of future and that helps keep the margin required low. But for option, it is not the same case. There is no such spread benefit like future in case of option which is eventually let the required margin low and margin benefit high.

The payoff for long and short futures are completely opposite so the risk is completely covered, but it is not the same for long and short options. Since the risk is not completely hedged, the margin required is more than calendar spreads for futures. Do we have to pay any interest on the margin amount on future trading if I hold the stock the till the expiry date. Please update the SPAN calculator for margin calculation of those index contracts whose option buying has been recently enabled.

This is already updated. Salesh, you can enter all those details on the SPAN calculator and check out for yourself. I tried to calculate the margin requirements for buying one lot 50 of NIFTY along with a purchase of one lot of Put Options pricedNifty is below right now ; both expiring OCT. Yet the SPAN calculator calculates a pretty large margin requirement for BOTH exposure margin and SPAN again, there is no statistical risk.

Vinayak, exchange while determining the risk also has to consider the risk of trade execution. What SPAN calculator shows is what exchange asks us to block.

What john anthony trading signals, if you first exit puts? Now you will have long futures with unlimited risk with only a portion of actual margin blocked. The same thing can happen if liquidity of puts completely dries up. Hi, In your Span calculator https: When I go to https: I need to find out the collective margin of all my commodities.

I want to know why there are 2 additional checks in your system for logging in? I need to click on my Avatar picture and answer 2 extra questions.

Customer support says it is because of SEBI requirements. Called 2FA authentication, here is the link. Your NEST Trader software is not at all up to the mark. I am surprised how can you launch such half baked product to the users. For most of the menu links, it just says: URL not found in the ini file. Black scholes model currency option was told you bmfx forex going to launch your own new trading software.

When that would happen since I was told about that 1 month back and there is still no news regarding that on your site? Yes, Pi will be up soon. We call put option trading nse f&o over testing it out already. Check this for an overview. If i want to trade in Futures margin, eg: If i want to buy Unitech 1 lot in Futures margin buy today and sell on before Expiry what is the amount required as am confused with Futures Intraday and Futures Margin. You can either use the SPAN or use our futures margin calculator.

The margin required presently for 1 lot is for overnight position. Is there two types of Trading like Equity Futures and Derivatives Future, am just confused, If i would like to traded in Futures, is that Equity or derivative? Both are one and the same Manohar. People call it equity derivatives, equity futures, futures, they all mean the same. If all documents are in place, trading account will take 1 day and demat 7 working days.

Could you also please clarify, If i buy futures under Normal with Expiry date jan and if i sell before expiryamount will be credited on the same day when i sell or do i need to wait till the expiry date. When you buy futures a margin is blocked, and that margin gets unblocked as soon as you exit the position, i. The profits made on a particular day is credited on the next day, and losses are debited the same day from your account.

One appreciates food best after famine. Strategies that I hesitated to execute, fearing my trading costs are now within my reach. Sweet was the feeling when I earned handsomely on options Thedifference between buy and sell price being less than the brokerage at my previous broker!

I have Rs Margin benefit through pledged shares. I do not trade in futures. I intend to short out of the money options only. But if there is any MTM losses, we need you to make good of it before next day.

So just to be safe it is better to keep some cash just in case there is any MTM loss on your short options. Margins are not calculated and also when i add another leg, it just replaced the first one at the bottom binary options signals from cavo buys mark. Dear Nithin sir, please advise.

Hi, I am not able to see MIS Vs NRML margin requirements. Can you please guide me the right place. Zerodha SPAN and Equity MArgin calulator in ZERODHA. It seems to be working for us. Kindly let me know the margin requirement.

You can see it hereNRML margin of around 30k. Yes, for intraday futures and option writing trades. Yes, currency futures and option writing trades. We will soon have this available on Q itself.

Dear Nithin, Thanks a lot for all the knowledge which you have been imparting. I wanted to ask you a very basic questions about writing options as I am relatively new to this.

It is about writing NIFTY PE 29 Jan Combined margin requirements SPAN margin Rs: If Nifty expires at will I be keeping the above premium and the margin? If your trade is favorable, the margin slowly decreases as you get closer to expiry.

But it is just a marginal reduction. If the trade starts going against you, margin increase depends on how much the volatility increases in the market. There is not an exact figure for this. Yes, if Nifty closes aboveyou get to keep all the premium.

Margin is anyway always in your account. Check this post on option writing. I am an new trader to zerodha platformjust checking the margin calculator before starting active trading.

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Will this work only for spanif i want to calculate individual margin where to can i his info. Mohan, while specialists in the stock market what is beta calculator options there is no concept called margins.

You need only the premium to buy. So in your example, you need only Rs to buy. Since there is no margin, if you add buy option positions, the span calculator will show 0. Can i trade in that way. Please reply on this. Thanks in advance for your support. No Anil, there is no penalty for that. The only issue is if you let the options that you have bought Buy options and not Short options expire in the money.

Explained in this post. I want to calculate margin, using your span-calculator for December contracts of Nifty. This is not enabled. How can I get the margin details for this? Any Updates on Leaps Long term options of Nifty……. I only see 3 months Nifty options available in the SPAN calculator while in the watchlist we can buy and sell upto eg I am interested in Dec option writing.

Please let me know the margin requirements for the same. Nitin would appreciate an make serious money on ebay book on this.

I am planning a strategy that would depend on this information. Could not find this detail anywhere. We are working on this. It means that it requires 67 times of premium. Anil what the SPAN shows is what our exchanges ask for.

This is not something that is in our hand. When you write puts and calls, you are still carrying a completely open risk position. So if tonight there is some extreme market news, and tomm if market opens at say oryour loss could be quite a bit. Since there is an unlimited risk, a higher margin is charged.

But if you bought say a put and call along with this, your risk is completely hedged. You will see the drop in margins.

I have calculated the margin by adding buy position of put and call and the margin requirement come down from 68 times to 30 times of premium receivable. So is there any other way to reduce the margin requirement and is it because of volatility in the market? Like I was saying Anil, margin requirement is determined by the exchanges and not the broker. Yes, margins go up with increase in volatility. As seen in the below screenshot, total margin required for Reliance future 1 lot is Rs.

If in my account i haveand i buy 1 lot. But at EOD i am at a loss of say rs.

So will i be able to hold onto my position till how long? Can i hold the position till i have exposure margin thr in my account? Mahadish, ideally you should have the entire 25k. So if tomorrow before market closing, your account balance is less than 20k, they will auto close the position. But this is completely based on market conditions, we might more stricter around news events.

Best to keep the entire margin all the time. There seems to be a flaw in the calculation of Margin requirements on a special case of Spread Put Option sales… Consider that I Short Sell Write NIFTY May Put Options Strike Priceand simultaneously Buy NIFTY May Put Options Strike Price I understand that I have to pay the difference in premium between the bought Puts and sold Puts because the sold Put is cheaperbut the combination spread position has no further Risk of loss as my Long Puts will always have higher value than my Short Puts.

So, there should be no need for a further Margin in this special case beyond the premium difference paid up front!! Why then is the SPAN Margin Calculator asking for a total Margin of Rs. Sorry… a couple of mistakes in the example above… — The quantity of options I calculated with was 25, not as mentioned above. This is lower than in the reverse case where it is Rs.

Why is there a margin required in my example case? Krishnamurthy, what the SPAN tool of ours calculates is what the exchanges calculate. How much margin to be blocked is actually stipulated by the exchange and not us. Coming back to why charge when the risk is limited on short put when you are long put?

Have answered it a few times before on this post. Exchanges have to also factor in what is called an execution risk. What if once you have taken this position, you decide to exit long puts first?

Because if you do, then you will now have naked short puts with unlimited risk, maybe with not enough margin in your account. What if you intend to exit both, puts get filled because it was liquid, and put remains pending in the system? So when exchanges calculate margin, they have to factor in all that risk. The only strategy which exchanges recognize is the calendar spread. So if you buy this month future, and sell next month or vice versa, margin is blocked only on one side. Dear Nithin, First of all, thanks for patiently answering my query, and happy to find someone at an Indian brokerage who understands this topic well enough to engage in an open conversation about it… I understand that it is the Exchange that specifies the Margin needs and not you.

However, the logic given to defend this unreasonable margin charge ps3 video output settings reset NSE is not rational. If I attempt to close my Long Puts before my Short Puts, margin would be due at that time — as if I am taking a fresh Naked Short position. Execution risk on close-out of combo position is easily avoided if NSE just closes the Short position before the Long one.

Black scholes call option formula all treat these Vertical Spreads as much safer than Calendar Spreads!!

By the way, all other exchanges also use the same SPAN tool from CME that London stock exchange sugar icumsa 45 uses.

So, I hope that big broker members like you would help protest this practise of NSE instead of defending it. This practise hurts you as much if not more than it hurts small timers. It also distorts option prices and kills the market for Deep In The Money options until close to expiry… So, I hope to get your support for pushing NSE to recognize Vertical Spreads and stop this distortion… Thanks.

Yep Krish, one of the things that we put forth everytime we meet the exchanges, higher margins on vertical spreads. This varies based on which strike, u can calculate all of this yourself on our SPAN calculator https: The post above explains how you can use this.

Yes you can use it as collateral. But you are allowed to use this collateral only for futures trading or options writing no option buying. Thanks for the arbitrage exist in stock market reply.

Regarding Point 1If I sell Call and buy Call, then I dont need any cash for buying the call right? So if you buy call immediately, you need cash, but if you buy it tomm you will not need. My Zerodha ID is DA I need to know one thing whether zerodha can trade with client money without the client permission. As today on i came across a situation where cash balance shown in back office q. I want to know how the limit can be negative without any order of client and by the end of the day cash value also changes.

I also could not place the two order for the script which ultimately locked in the segment upper circuit. I had full trust in Zerodha and infact advised others also to open the Zerodha Account. But after today incident i have serious about the integrity of the functioning of Zerodha. Kindly provide some explanation.

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I have attached the screenshot for your reference also. Guess this issue had happened because you had looked at Q while the trade process was running in the evening. If you would have looked at Q during this process, account balance would have shown wrong. I have used the PC SPAN Software provided by NSE to calculate Span Margin. I find that there is major difference between your online calculator and PC SPAN. Nifty Near Month JUL — 25 qty PC SPAN shows approx — Zerodha show apporx — I was wondering if you use only the 16th scenario.

I can see that as per SPAN Max Loss value seen from scenario is not matching with PC — SPAN software with me. I can also see that your values are matching with other brokers also but when everything is based on SPAN calculation can you explain why this difference is shown. I wanted to rely on only one calculation but this confusion has to be cleared to take proper decision.

I am trying to build my trading strategy and all these factors are important to me.

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Your help in this regard will be highly appreciated. Thanking you in anticipation. I will try to find out from them though.

I understand adding Exposure Margin will increase the Total Margin requirement. My focus is on why Span is different. In my example above SPAN Margin shown in Zerodha calculator smaller than PC SPAN Software. Salil our vendors are clueless about this. But I can tell you this that what we block matches what exchanges ask us for. This raises another question what is the purpose of TWO SPN files being kept on Exchange and in what circumstances either of them needs to be used.

If I trade an iron condor, say nifty is at spot I write a call, buy a call I write a put, buy a put. Is there some way by which I can place an automatic conditional order like this — for eg.

Sebi raises minimum contract size in equity derivatives to Rs 5 lakh. The new contract size has to be Rs 5lks, so the lot size will go up toand margin required will also go upto around Rs 70, SPAN margin is the minimum margin stipulated by exchange. Exposure is the margin over and above SPAN that exchanges ask broker to keep. I was in the process of finalizing opening of a trading account with Zerodha. A response to the issue by you will benefit prospective traders.

Have answered that query: What will be the minimum account balance required for initiate this trade tomorrow normal Order. You will get margin benefit only once both the positions are taken. Our company is in need of consultation in the filed of span methodology — to be used for option trading risk management.

So it will be appreciated to inform us if such services are available by your company. I know the lot size is increasing from November to But has the margin requirement for writing options also increased? The Span calculator is showing that writing one PE for November expiry will require Rs.

I would have thought that the margin required would simply triple from before, but this shows that the margin requirement has almost quadrupled. Harshit, after midnight we will be running our back end process when the SPAN calculator might be down. I want to sell the nifty call option for strike date DEC Pls let me know what would be the margin? Ur margin calculator does not seem to have this option.

Ah yeah, long dated options are currently not showing up. One of those things u can do currently is to place a limit pending order, and see what is the margin that will get blocked in cash positions. Around for Banknifty and for Nifty.

Surprising that you are not able to figure tactics and strategy in the binary options 60 seconds the calculator.

Click here to check the breakeven point. You could pledge currency futures trading hours shares in your holding and raise margin which you could then use to write the options.

Yes, the margin goes up the longer the time to expiry. The far month options usually have much more exposure margin. Check this linkpoint I have selected put and call option for the same series with the same expiry and it is showing the complete margin without any margin benefit.

As an example — CE and PE for Feb series shows margin of Rs. Request you to look into this. Hello Team, I am not able to calculate the margin for same month expiry options in SPAN calC. When I enter second onefirst row is getting deleted. If expiry month is different, then it is allowing. Please correct the same. Can you add the Short position first to the SPAN calculator and then add buy option instead of first entering the buy option.

Will have this checked. HI Nitin, I am not able to put the below order. Using Margin Calculator for below orders, it is showing Total Margin: NIFTY Jan16 SELL NIFTY Jan16 BUY. I am having 60k in amount, definitely more than above combined. But, when I am placing hedging foreign exchange risk in india orders in Kite, after placing first order, second order is getting failed with below reason, tried vice-versa, same error.

5 minute binary options methods 360 system nitinjisir, Today I have place 3L spread order nifty fut Jan buy ,sell nifty jan ce ,buy nifty Jan pe giving manual price near around current price at that time ,span calculator shows total margin around 54k,but when I place that order it gets rejected even though I have 69k,dying that margins require91k.

Niket, you get the margin benefit only once all the three positions are entered into. So you will need sufficient margin to enter these individually. I would also like to know when it gets automatically square off in spread order. If you have a calendar spread in futures, nothing will be squared off unless one of the contracts expire. System could not complete your transaction- ADMIN notified even i have sufficient cash,is there any technical problem or i have put wrong method.

This is a rejection code directly from the exchange. Illiquid scrips in the Periodic Call Auction trade in hourly cycles, starting at 9: The exchange matches orders from Then there is a cool off time from This cycle is repeated 6 times during the day.

Once you place your orders, you have to wait until the 45th minute for the exchange to start the execution process. If your order is not matched in a session, it will get cancelled and you have to place a fresh order again. Please explain the margin required in Stock option eg 1-if I buy 1 lot call option HDFCbank jan strick price ce 888 binary options on goldfinger When you buy an option, margin how much money do roughnecks make in texas will always be: Your margin computation for both HDFC Bank and Cairn India is accurate.

This is with reference Zerodha communication dated 25th Jan It is SEBI requirement, check this: Today I am trying to place 3 leg order. As per span calculator ,Rs. But although I have maintain in account, order is rejected due to higher amount is required.

Please not, my buy order is already executed. Dear Nitin, I have read your story and your vision related to brokerage and new trading tools. I how much money does oprah make per episode marketing partner with you and also open my account with you to check your services before moving my client to Zerodha but i am not happy with you support team which is not working with your vision.

Following are the pain points: I have moved my account to NSE Now but support team not added bank account and after follow up with them 4 to 5 time they move me to kite again but while mean time i can add money and due to 5 day delay form your side they square off my positions which is not my fault, i am ready to pay but they not given me any portal.

I need clarification on this matter. If margin in the account goes below SPAN on eod, exchanges even charge a penalty. You Span margin calculator tool is excellent. I have some query in definition of earnest money agreement. Can I upload Position in Excel and calculate total margin? Can it be possible to include Equity.

There is no margin in case of equity trades. Currently not possible to enter positions using Excel. You can calculate here: How much max quantity I can buy in such scenario, and pl keep in mind I will be squaring off the position at end of day as well so that I will not be breaching the margins. Pl note I will always be buying CE or PE as first order and then squaring off before EOD, so no timeshares to buy in aruba Nifty option order.

How I wish that Pi software does this square off automatically at user given time say I want to square off all pending orders So with a lac you can buy upto 11 lots.

You can set the order type as MIS for it to get squared off at 3. If i write an option, should i need to keep the total margin in the account? And if i can keep the total margin can i hold the shortsell position for days? Yes, you need to keep total margin, and yes you can keep it till expiry. If you have entered the contract, it means there is OI.

While exiting, if there is no liquidity, it is just let expire. I have another question. In case it does, the onus of maintaining enough margins vests on you, failing which penalty will be levied for the deficit margin.

For this Iron Condor, The Max Risk is Why is zerodha charging very high margin. Could you please provide better margin for such trades. This would give better ROI for traders. The margin to be blocked is determined by the exchange and not us. Please clarify me that if I buy 10 Lots of XYZ Rs. You get additional leverage for trading using MIS. Not able to attach here. I am guessing if you are trying when there beginning of day process is running, then you will not be able to.

Do you think we have the provision to lower the margins for credit spreads in India? For instance As on May 3,I sell infy call at My net credit is Rs. So with lot size my maximum loss is Rs. So margin required should be around But its showing when i check on zerodha span? This margin requirement is stipulated by the exchange. Hi, suppose i have bought a call of nifty at 25 and at the end of the day premium falls to 20 but i want to take overnight position.

Will this 5 rs be adjusted at the end of the day. I am trying to place the below order from the Kite, 20 lots. Same is being shown in the Margin Calculator tool, why is it so?

These are exchange requirements, check this answer: You have not yet enabled MIS Option selling, and intraday margin benefit is also not there. When are you enabling the Intraday margin for the same? Currently the margin showcased is based on current prices. Little tricky because the margin calculation also involves volatility calculation.

Calculating future volatility is as good as calling direction in the market. Even so, if the margins for an option spread are THIS high, it defeats the purpose of the spread. Forcing the traders to play singles? I dunno, but sir, can your community not push for a better scenario.

Across the world margins are half of the actual position. Here its at least thrice the position! Prithvi, margin requirements are regulated by exchanges. Exchanges charge margin based on worst possible scenario. Of course sir, I have read a few other queries posted above, so yes, the margins are decided by the exchanges. How do I calculate the margin requirement for BANKNIFTY weekly expiry contracts?

Also, how do I calculate the margin required for long-dated NIFTY options?

Banknifty weekly margin requirements are similar to the monthly. Similar for long date Nifty options, slightly higher than the monthly. Risk-wise this is the same as an ATM put, so am not sure why the SPAN margin changes at all. I understand there is execution risk, but I see nothing on the exchange website to account for this? Technically the risk for any one shock does not increase when we go from a short call to a short straddle.

So SPAN margin as per the calculation rules on the website should not change. But I read what you wrote elsewhere about execution risk, so I agree the SPAN should be higher. Thanks Nithin, I did read that before posting the original question. I understand that there is execution risk and that is why the margin benefit may not be as high as one would anticipate.

But do you know the exact rules whereby we can calculate the margin benefit for different portfolios? The SPAN rules https: I was trying to build those rules into a system for picking option positions, and hence the question. Adithya, the margin blocked for a particular client is completely determined by the exchange.

But yes, the only reference is the link that you have shared. THANKS FOR REPLY AND MAIL SIR I WANT TO CALCULATE MY SELF IN RUNNING MKT. Dipesh, when you are buying options there is no concept of margin. In options it is a premium amount, whatever is the premium, you have to keep it in your account.

Does the above mean, that I need to block to execute the trade? So you mean if Reliance falls even by Rs ormy loss will be equal to the initial margin i. If reliance falls by Rsyou will lose Rs x and Rs 1lk if by Rs When you lose money, first exposure margin reduces and then SPAN. I am interested in options that is selling equity and nifty and Bank nifty,but not the indexes Regarding calculation of margin I tried your with your calculator. I cant understand what is Span margin, Exposure margin and Total margin.

Which one of these amount I should have in my account for carrying on option that is selling equity and Nifty and Bank nifty options and not index trading. Around 79k, Check this: Will the position be sqauared on auto?

In other case, suppose MTM loss is more than free cash allocated at the end of the day…. Yes, as long as there is collateral that is pledged to cover, you will be given time. No, Read through this post. Hello, I usually trade on a intraday future basis.

Tha margin calculator is for a one month expiry. If i want to trade on intraday basis do i get better explosure and less blocked margin. I usually trade nifty around times in a day with lot size of 50 to Please let me the know the best solution. SO if the premium for CE is Rs. You can use the margin calculator to compute margins to short options.

Select the Sell option instead of buy. Please include Bank Nifty weekly options in your symbol list. Also provide MIS and Normal margin calculation option in FNO margin calculator. MIS margins are already being given for weekly options. Please help me on this. Use this calculator to see the margin required: When will be the premium will be credited on call writing and how do you calculate the margin benefit Regards Raju. Premium is credited next trading day.

You can calculate margin benefit here: Say I have sold puts Dec 29, on SBIN, I got INR. My total margin required: If stock moves towardsthe put value will increase.

Now, if stock stops at say, on 29th Dec. So, I will get full right? What happens if stock ends at That means I have to buy shares of SBI atbut my account does not have that money. So, how much money I loose. If by some glitch, stock drops to overnight for even say one minute, now, If I get exercised, what happens? I am trying to BUY SUNPHARMAJAN future 1 lot, NRML position…not MIS and as per margin calculator total margin required is appx 64k, however, when I placed the order it was rejected for reason that margin is insufficient.

I had earlier placed equity buy limit order worth 60k thereby reducing cash available for margin to 29k 89k my cash available — 60k blocked for equity orderso as soon as I cancelled the equity buy order, I could place future buy order successfully that required around 63k margin. I am guessing you might have another pending order which is blocking margin.

Hey I am new to market. I bought the commodity ALUMINI17JANFUT First i credited the amount 10k to the commodity account and bought it so my balance after call was But on next day, i got the reversal amount and also was debited an obligation amount loss and also a new margin amount was debited. So i get a new low balance and this happened every three day.

May i know what is this? And everday a new margin amount is debited and if i make a loss in a day my balance is reducing. Can you explain this? Abhimanyu, all futures are marked to market everyday. Hi sir, In options when we are entering into a position ,what is the amount we have to pay whether it is the strike price or the premium and where shall we find the premium amount for a particular strike price.

When buying options, you need premium amount. So if lot size is and premium is 10, u need Rs If you are shorting options selling first you need a margin amount since the losses are unlimited. Is this your margin calculator working correctly? Number three i want to know how much margin you are charging for Nifty buying and selling? I only trade in Nifty. Also clear how much margin you are giving for intraday and how much for delivery in cash segment?

When you buy options, margins are charged by way of premium that you pay towards the option. Lot size being 75, total margin required will be Please use the calculator to ascertain the margin: Equity margin for Intraday: Yes, you can write as long as you have the required margins in your account. You can ascertain margins here: I checked for margin blocking for writing Bharti Infratel call. Margin calculator is showing only span margin and zero exposure margin.

Can I get list of all option contracts where no exposure margin is required. But it becomes tedious when I enter more than options as I have to back-calculate everything. Now when I press the reset button, it resets it back to the original and I have to select all the way back, thus becoming inefficient as it consumes a lot of time.

Could you please look into the following features so that the calculator becomes more efficient in working: The widget lower than this calculator should show the premium received for each individual option apart from the margin requirements.

Hi, Why is the margin calculator not considering the LTP? For ex, shorting 1 lot of SBI25JANCE, the margin amount calculator takes previous day i.

Thursday close of 2. Umesh, the SPAN calculator currently is picking up LTP from our end of day database. We will see how we can make this live. I am very new to Options and have a very fundamental question. I did not understand what is SPAN and What is Exposure in the margin calculator. Not able to correlate.

SPAN and exposure are required only when shorting options. No one line answer to this, suggest you to go through the option module on Varsity. Is there any plan to add Ichimoku indicator in Pi in near future?

I saw some posts from April herewhere it was requested. Btw, it is available on our web app kite. You can see MIS here: From where to calculate margin requirement for bank nifty weekly options? In Zerodha margin calculator only monthly options are available.

Yeah, will take some time to show up there. But you can assume the margin requirements are almost exactly similar to monthly banknifty options. Hi, If I have a lot of petronet futures bought at expiry of 23rd feb and sold a lot of Call Rs. You can calculate this yourself using our SPAN calculator. Seems to be working correctly. HOW MUCH MARGIN IS REQUIRED FOR SHORT SELLING INDEX OPTIONS INTRADAY BY USING MIS INSTEAD OF NRML??? How do exchanges calculate it. SPAN is a trademarked product by CME.

NSE has licensed this out from CME. You can check this link on SPAN methodology. Exposure margin is charged over SPAN by NSE to give some leeway in case of MTM losses of clients.

Would you be so kind to help me out understanding the scenario: Would like to know about, when the positions could be squared off. Is it like the way we do when we buy options any time square off? Is it also possible to write options on the day before options expiry? Request you to please refer me some pdf to understand it better.

Need insights to practical approach. Can you check this post. Sir, my query is whether sbi n5 or n6 series bond traded on nse can be given as margin for FO trades for intial and span margins?? I bought one lot of HIND ZINC Mar. When total premium is already paid in advance,I am unable to under stand why too much margins are being blocked by RMS.

Margin requirements are actually determined by the exchanges. If you have bought futures and calls, the risk goes up and hence exchange starts blocking more margins. Thanks for your prompt response,but I am not satisfied with your reply. I have an account with ICICI DIRECT too and did the same practice,but no additional margins blocked. Though I have a very little knowledge in this matter but whatever I read in your Zerodha varsity I believe that my risk is limited if I am a buyer of call options then what is the justification of blocking more margins.

We are having 3 accounts with Zerodha,in the name of other family members and trust that you are the best broker among the available lots,but regarding margins it is a concern. Raj, this margin blocked is absolutely out of our control. If you took the exact same position, you would see that margin blocked will be the same.

That is because exchange blocks this. I trust you people have adequate knowledge on the subject,but still I request you to please have a thorough look in to the matter again, there must be some flaw. I am unable to understand, how exchange can set double standard for two different brokers? Dear Sirs, Should I hope to know the correct answer,or forget. With regards, Rajkishore Gandhi.

I noticed there is no exposure margin for options writing on the index for example. My problems is I have purchases a future position say HAVELLS at and stop loss at I have paid margin as per your margin calculator. Actually it is blocked at those rates. Now at the end of the day the price of future isstop loss is not hit. What will be the status of this position. Whether it will be carried next day or will be squared by the RMS at the end of the day.

Please let me know the margin required to trade one lot of nifty futuresone lot of bank nifty futures,call option selling a lot,call option buying a lot,put option selling a lot,put option buying a lot. All the trades done for intraday. You can use the margin calculator to compute the margin requirements: Either it does not work or language confusing. If today I want to Jain Irrigation 1 lot CE total margin requirements not displayed.

When you take positions that hedge each other, margin required drops. This reduction of margin is the margin benefit. I have NIFTY Put options. Why am I required to have a margin when I am trying to close my position? I didnt face this when I made the same trade for the call options I had. So i receved rs. What is the total amount paid by me for margin. You can check the SPAN calculator: The SPAN calculator supports margin calculation only upto 3 months duration option.

What is the margin requirement for trading NSE Bond Futures. Asking this bcoz i could not find this on zerodha margin calculator. But actually when we short both call and put of same expiry, v should pay the margin for only 10 lots and not At least this is wht my previous brokers used to do. So why do zerodha charge margin for 20 lots? Margins are computed using the SPAN method by the Exchanges themselves.

This is why higher margins get charged. I know the risk man.

My question was if motilal oswal, emkay etc charge margin of one lot for shorting one call and put then why r u charging double that margin. You are trying to be extra safe then. Tanmay, margin requirements for these positions are determined by the exchange and not broker. So it has to be the same across various brokers, atleast on overnight positions brokers offer varying intraday margin requirements. Tell be how the margin benefit works when we go for a covered call, do we need to have the full margin benefit or will there be any margin benefit.

You need to have full margin. You can pledge the stocks and use margin from that to take covered call. Open an Account Updates-Latest at Zerodha Pi Beta Updates Why Zerodha? Zerodha Associate Program Zerodha in News — Headlines Zerodha in News — Quotes. For Calendar Spreads Calendar spread is a spread trade involving the simultaneous purchase of futures or options expiring a particular date and sale of the same instrument expiring another date or vice versa.

Hoping all of you like this tool, Happy Trading. Jake the Snake says: November 13, at 3: January 20, at 4: January 20, at 9: January 22, at 4: February 6, at 3: February 6, at 7: Siyad P M says: December 27, at 6: December 27, at 9: January 4, at 7: May 18, at May 19, at 1: December 27, at 5: January 10, at 1: November 18, at November 18, at 1: November 18, at 2: October 5, at October 5, at 1: October 5, at 3: October 5, at 6: October 5, at 9: October 6, at 9: May 26, at 1: May 26, at 5: January 5, at 1: January 5, at 7: January 7, at 2: November 19, at 4: November 19, at 1: November 19, at 2: September 15, at 3: November 21, at 6: November 20, at 6: August 15, at 2: August 15, at August 16, at 4: August 16, at 8: August 17, at August 17, at 8: August 17, at 9: November 21, at 4: November 22, at 5: January 15, at January 15, at 1: June 25, at S Sri Varun says: January 3, at January 3, at 8: Zerodha SPAN featured on Business Line Z-Connect by Zerodha says: November 30, at 9: December 4, at 7: December 4, at 1: December 7, at 3: December 8, at December 9, at 9: December 9, at December 11, at December 12, at December 13, at December 31, at 5: January 23, at 2: January 23, at 5: January 23, at 6: January 23, at 7: January 29, at 2: February 25, at February 25, at 7: February 26, at February 26, at 5: March 9, at January 29, at 3: January 30, at January 31, at January 31, at 4: January 31, at 7: January 31, at 8: February 3, at 4: February 3, at 8: February 4, at 4: February 4, at 5: February 4, at February 5, at 6: February 9, at 4: February 10, at 6: February 10, at February 12, at 1: February 13, at 1: February 12, at 2: February 12, at February 13, at February 13, at 6: February 14, at 6: February 15, at 7: February 17, at 1: February 17, at 2: February 19, at 1: February 19, at 2: February 19, at 4: February 20, at 9: February 20, at February 20, at 6: March 9, at 8: March 11, at 8: March 22, at 5: March 23, at 5: March 24, at 9: March 24, at March 26, at 9: March 27, at 5: March 31, at 4: March 31, at 5: April 2, at 4: April 3, at May 4, at May 15, at 1: May 16, at 7: May 16, at May 16, at 1: May 22, at 5: June 4, at 2: June 4, at 9: June 15, at 5: June 16, at 9: June 23, at July 7, at 8: July 8, at 9: July 15, at 7: July 16, at 8: July 16, at July 17, at July 18, at 1: July 22, at 2: July 22, at 3: July 22, at 6: July 23, at July 30, at 1: August 6, at August 6, at 2: August 29, at 7: August 29, at August 30, at August 31, at 8: September 5, at September 5, at 1: September 12, at 9: October 6, at 8: October 27, at October 28, at October 28, at 5: October 28, at 7: November 6, at 8: November 6, at 7: November 6, at 9: November 7, at 1: November 8, at 9: November 8, at 2: November 14, at 4: November 14, at 5: November 14, at 7: November 14, at 9: November 15, at 1: November 19, at December 6, at 8: December 6, at 3: Seetharaman M S says: December 9, at 2: December 12, at 9: December 26, at December 25, at 9: December 26, at 4: June 25, at 4: December 26, at 9: January 8, at 9: January 8, at 1: January 13, at 6: January 13, at 9: January 31, at 2: February 16, at 4: February 20, at 7: February 21, at 7: February 22, at 7: March 15, at 5: March 16, at 9: July 26, at 1: July 26, at 6: December 25, at 2: December 25, at 7: March 15, at March 26, at March 31, at 2: March 31, at 3: April 24, at 5: April 24, at 6: April 24, at 7: April 27, at April 27, at 1: