Margin Calculator

Before diving into Futures and Options trading, it's essential to allocate some money with your broker for safety. This money acts as a buffer in case of losses. Our online margin calculator simplifies this process and guides you in determining the right amount needed for trading in cash, currency, or commodities, ensuring a solid investment strategy.

What is a Margin Calculator?

A margin calculator is an easy-to-use online tool that helps determine the margin required for your trade. Just input details like exchange, trade type, company name, share price, and the quantity of derivatives, making it easier to plan your trades and goals effectively.

Types of Margins

There are different types of margins that the calculator calculates which includes:

SPAN Margin

The SPAN margin is fundamental in futures and options trading. It calculates the maximum potential loss of a portfolio across various scenarios. It's updated six times daily, so the margin value fluctuates throughout the day.

Exposure Margin

The exposure margin is extra money collected by brokers to cover their risk in case the market goes bad.

Value at Rise (VaR) Margin

The VaR margin gauges the chance of losing money in an asset by looking at its past price changes and volatility.

Extreme Loss Margin

The extreme loss margin accounts for potential losses beyond the VaR limits.

How to use a Margin Calculator?

Here's a step, by step guide on how to make use of the margin calculator:

  • Start by deciding whether you want to trade in Futures or Options.
  • Next enter the contract name, such as NIFTY, SENSEX50 or any other stock that interests you.
  • Input the quantity you wish to trade in the Quantity field.
  • Select either Buy or Sell depending on your trading preference.

Once you've provided these details the calculator will provide you with the margin requirement. It's important to be aware of the margin requirements for a trading experience in futures and options.

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What is a Margin Calculator?

A margin calculator is a tool used to determine the required margin for trading in financial markets, such as futures and options (F&O).

What is the Margin for F&O?

The margin for F&O refers to the amount of money required to be deposited with the broker to initiate and maintain positions in F&O.

How is the Margin Calculated?

Margin is calculated based on various factors including the volatility of the underlying asset, contract specifications, and regulatory requirements.

What factors influence margin requirements?

Margin requirements are influenced by various factors including the asset being traded, volatility, leverage ratio, and regulatory requirements imposed by the broker or exchange.

What is the SPAN margin requirement and how is it measured?

The SPAN margin requirement is a method used to measure margin for futures and options contracts. It considers the overall risk in a portfolio of positions, taking into account potential market movements and correlations between different assets.