Zerodha F&O margin Calculator

Traders,

Zerodha F&O margin Calculator part of our initiative “Zerodha Margins”  is the first online tool in India that let’s you calculate comprehensive margin requirements for option writing/shorting, futures and multi-leg F&O strategies when trading equity, F&O, Currency and Commodity on NSE and MCX respectively.

The calculator will ensure that you never have the following queries again

  • Margin benefit you get for taking calendar spreads (taking opposite positions on different expiry of the same contract)
  • Option writing margins
  • Margin benefit for various multi-leg option strategies like iron condors, straddles, strangles and more

The following post explains various ways in which F&O margin calculator can be used,

For Future Margin Requirements

See the example below for Nifty November futures margin requirement.

Total Margin = Span/initial + Exposure

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. Read our Margin Policy for more.

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. 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 = Span/initial + Exposure – Spread Benefit(If any)

Total Margin is the margin required to hold the position overnight 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. Read our Margin Policy for more.

For Option Writing/Shorting Margin Requirement

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 6000 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.

Total Margin = Span/initial margin + Exposure margi

Total Margin is the margin required to hold the position overnight 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. Read our Margin Policy for more.

Premium Receivable?

When you write/short options the premium that you receive gets credited to your trading account immediately after taking a trade. Zerodha F&O margin calculator accounts for this premium received based on closing price of premium from the previous day.

So in the example below, the margin required to write/short 1 lot of Nifty 6000 calls is Rs 31,625, but as soon as you take this position Rs 13,370 is credited to your trading account effectively blocking only around Rs 18,300 for this position. It works the same way for both equity and currency options.

For Multi-Leg F&O Strategies Margin Requirement

There are many popular multi-leg f&o strategies like Straddles, Strangles, Iron Condors, Butterfly, Bull Call Spreads, Covered Calls, and more which would involve taking more than 2 positions at a time.  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

Iron Condor involves 4 legs  and is a limited risk non-directional option strategy designed for high probability of earning a small profit when you perceive low volatility.

Nifty is presently at 6100

  • Sell 1 OTM Put – Short 1 lot of 6000 PE in the example
  • Buy 1 OTM Put (Lower Strike) – Buy 1 lot of 5900 PE
  • Sell 1 OTM Call – Short 1 lot 6200 CE
  • Buy 1 OTM Call (Higher Strike) – Buy 1 lot 6300 CE

As you can see below the Zerodha F&O margin calculator will show the margin required and the benefit for entering this strategy in a jiffy.

Total Margin = Span/initial + Exposure – Spread Benefit (If any)

Total Margin is the margin required to hold the position overnight 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. Read our Margin Policy for more.

 

Disclaimer: Zerodha Margin Policy can change any point of time based on risk and market volatility.

 

Hoping all of you like this tool,

Happy Trading,

 

Nithin Kamath

Founder & CEO @ Zerodha, team working towards breaking all barriers that I personally faced as a retail trader for over a decade. Love playing poker, basketball, and guitar. Getting body fat % in single digit is the next personal endeavor :) .

360 comments

  1. Jake the Snake says:

    Very Nice.. Thanks for this…

    • shashank agrawal says:

      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. what I don’t understand why do l need to put so much margin for a spread.

      • Shashank, the SPAN and exposure margin requirement is set by exchanges and not us. It is the same across all brokers. Check this: http://tradingqna.com/949/span-margin-for-a-hedged-postion

        • shashank agrawal says:

          Hi Nithin,

          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? So, if some has a spread with lower margin he won’t be able to sell the long leg of the spread until either he has sufficient margin or until he square off the short leg first. 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? It doesn’t make any sense and believe me in other brokerage firms you can easily sell a call without any extra margin if you hold a position in nifty

        • shashank says:

          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.

          Thanks

  2. harish says:

    Not many brokers out there who think like u guys..

  3. Priyanka says:

    Are these margins applicable only for those who have opted for zerodha trader or also for those who use nse now?

    • It is for Zerodha Trader, for NOW there would be a small variance.

      • Ranjan says:

        Hi Nithin,

        I was trying the SPAN margin calculator for ICICI Bank OCT futures. While SPAN calculator shows a margin of Rs.43,000, future margin list shows around Rs. 35000. I have noticed this difference for all stocks and really don’t know if this is a technical glitch. We have discussed this some time ago last month also. Just wanted this to bring to your notice. I have attached the screen shots.

        Regards,
        Ranjan

        • Ranjan says:

          Screen shot taken from the list of stocks

          • 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. That said, there could be upto 10% difference up or down.

            • Ranjan says:

              Thanks Nithin. I had checked this around midnight yesterday. Have checked now again and this seems to be working fine now.

              Nithin, I had another query with regards to the MTM adjustments for which I request your reply:

              Suppose I deposited Rs. 50,000 in the trading account and took NRML F&O position where initial margin (SPAN+exposure) blocked was say Rs. 30,000. This gives a free cash of Rs. 20,000. Now if there is a MTM loss of Rs. 2,000 on day 1 , will that be adjusted against the initial margin (from the exposure portion of the total margin) or from the free cash?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.

              Request your inputs on how M2M adjustments happen at Zerodha.

              Many thanks and regards,
              Ranjan

              • 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.

                • Ranjan says:

                  Thanks Nithin..In that case suppose there is no free cash, what’s the maximum MTM loss that can be adjusted against the exposure margin..I mean when can Zerodha’s Risk team close the position or margin call will be made?

      • AKASH says:

        HELLO NITIN SIR

        SIR IS THERE ANY PROBLEM IN SPAN MARGIN CALCULATOR
        BECOZ WHEN I AM ADDING CURRENCY SCRIPT IN CALCULATOR IT NOT SHOWING THE MARGIN.PLZ HELP ME SIR

  4. suresh says:

    thanks for the above information and the examples are really good.
    I just want to know when will you introduce cover orders in commodity.

    thanks,
    suresh.

  5. chittadash says:

    when will ur new software lunch

  6. Rajendra Prasad says:

    Any updates on the latest software which u promised to be released by end of this year?

  7. Raj says:

    In ICICIDIRECT there is something called Margin Buy and Margin Sell. Does ZERODHA has similar service available for the customer ?

    • Hanan says:

      Zerodha has something better. We have two extra leverage margin order types:
      1. MIS – Margin Intraday Squareoff – You get 3 to 10 times exposure for intraday trading.
      2. CO – Cover Order – More information is available in this article.
      Check this out!

      • Ranjan says:

        Hi,
        I am not very clear about the margin needed for F&O trading on Zerodha. For example, if i refer your SPAN calculator for say LT-27-Aug-15,I note that Rs. 34,912 is needed to place a NRML order. Now if i refer the link https://zerodha.com/margin-calculator/Futures/, Rs. 27,589 is needed. In the former case it works out to be 15% of the contract value and the latter case it’s 12%. This appears higher than what other brokers e.g ICICI Sec need. In fact I have known them to need 10-12% of the contract value for most of the nifty 50 bluechip names like ICICI, SBI, LT, HDFC Bank etc. 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.

        • Ranjan, don’t know if you are checking it out right. I see LT Aug futures margin same 27850 on SPAN and futures link. The margin charged is regulated by the exchange, only Nifty futures margin is around 10% of contract value. All stock futures, start atleast at 15%. We settle with the exchange on T+0 basis, so among the list of brokers charging the least margin.

          • Ranjan says:

            Nithin, Thanks for your reply.
            Yeah, Now if i see both links throws the same margin of Rs. 27,580. However, I beg to differ with you on the minimum margin needed @15% for stock futures. I know for sure that ICICI Sec takes around 10.5-11% as initial margin for stocks like LT, SBI,HDFC Bank. However, I appreciate Zerodha giving higher leverage on intraday basis. I don’t have an account with Zerodha yet and was planning to have one shortly. Could you please throw some light on the end of day MTM profit/loss adjustments and margin release/call policy that Zerodha follows? As in, do i need to maintain funds in the trading account or it can be debited/credited from/to the linked bank account? Also, is simplified P&L statement/portfolio tracker etc provided within the web platform to enable tax calculation? Finally, your views on the minimum lot size increased by SEBI recently?

            • Hmm.. I don’t think ICICI Sec charges 10.5 -11%, can u provide me the link where you are seeing this.
              As long as the MTM loss is less than 20% of total margin required, no issues. 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: http://zerodha.com/z-connect/category/tradezerodha

              • Ranjan says:

                Nithin, I tried to send you the link; however, that’s a secured link and can be viewed only when logged in…they have something of their own called Non-SPAN margin and the 10.5-11% i was talking was related to that only. nonetheless, I am not here to debate who needs the least margin…neither I am comparing Zerodha with anyone.. I am new to this world and just had the curiosity..nothing else 🙂

                • Ranjan says:

                  Look forward to be a Zerodha member soon

                • Ranjan, I started trading with ICICI, so I kind of have a fair idea on what/how is charged as margin. The non-span margin is called exposure margin with us, and yeah that could start at 10% of the contract. But the total margin is sum of SPAN + exposure/non span. 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: http://zerodha.com/varsity/

                  • Ranjan says:

                    Thanks Nithin. I will definitely go through the link provided by you. I just wanted to highlight that ICICI have two types of margin system 1. SPAN and 2. Non-Span. For a customer who is mapped to SPAN, total margin blocked is same as Zerodha but for the customer who is mapped to Non-SPAN it’s slightly less. I am not sure if there is any catch here. e.g I could buy 1 lot of LT 27 Aug futures with Rs. 24,800 as margin under the non-SPAN system. Had I been mapped to SPAN, I would have needed around Rs. 27,500 (for the same price of futures contract) , which is the same as needed by Zerodha…so not of a much difference. 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. Regards-Ranjan.

                    • Ranjan says:

                      Nithin, i just noted that even though they don’t deduct entire amount from the bank account, they do block the difference in the trading account. So, in effect margin blocked is same as in normal SPAN system guided by the exchange and followed at Zerodha. You are correct. Thanks!

  8. Priyanka says:

    Is it possible to enter one order that cancels other if executed.
    For example I am long Nifty future at 6000 and want to place an order at 5950 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 6100. If I enter another order for selling at 6100 it requires additional margin.
    Is there any way to do this?

    Rgds
    Priyanka

    • Priyanka,

      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. But if one gets executed the other won’t get cancelled automatically, you will have to manually cancel the other order.

      Cheers,

  9. Suresh says:

    Thanks for providing the online span calculator

  10. […] Zerodha SPAN featured – Tech tools in Hindu Business line, to know how to use check this blog. […]

  11. Ram Mohan says:

    Nice article. As per the above to take all (both 2 long + 2 short) postions need only 39064 ? or it is only for shorted positions? Do we need pay separately for buying positions?

  12. Mayuresh Kemkar says:

    Dear Sir,
    This is my first query post on the blog, I do not know whether this is right place to post or not , as i have seen Mr. Kamat sir explaining to lot of fellow traders , So I hope that I will get chance to interact with Mr .Nitin Kamath sir …

    Please, explain following situation with figures…

    Considering I have Rs 30,000/- in my account,

    1) Amount of margin that gets blocked to enter long call GBP futures JAN Contract with 5 lots

    I can see ( Rs 13,892 ) on span calculator.

    So Rs 13,892/- Will be the margin required for this position ..

    A live market entry is done.. now,

    Account status of 30,000/- will show 13,892 as blocked margin and 30,000 -13,892 = 16,108 INR As available limit.

    Is this correct?

    If yes, then the next part of the question –

    2) Now, I enter a second position with following details ..

    Short call GBP futures with 5 lots at the same time on GBP FEB contract – (13,752) Margin as per span calculator,

    BUT , as this now is a SPREAD position, span calculator calculates the benefits and shows:-

    SPAN margin
    Rs: 7,568
    Exposure margin
    Rs: 5,110
    Total margin ?
    Rs: 8,422

    Now, as you can see, the calculator is showing lot of “SPREAD BENEFIT”

    So my question is With above two above positions running,

    At which of the following margin value, Zerodha will Automatically cut (square off ) both positions if the margin gets touched

    A) When 30,000/- account comes down and touches Rs 13,892 — This was the FIRST call’s margin requirement

    OR

    B) When 30000/- comes down to Rs 8,422 which is the margin showed by span calculator as BENEFIT because of spread position.

    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..

    D) Is it applicable for overnight positions?

    Dear sir I would like to request you to answer in exact figures (This makes lot of difference to my trading )

    Thanks 🙂

    • Hey Mayuresh,

      1. Yes, out of 30,000, 13892 gets blocked for your long GBP position and the rest which is 13752 is free balance.

      2. 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 (7568 in your example), the exchange penalizes you for this. Our RMS team would typically square this position off atleast 30 to 40% above this minimum margin requirement (there is no set rule for this, it depends on market volatility). So if SPAN required is 7568, around Rs 11000(when your account balance comes down from 30000 to 11000) 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.

      Yes the margins applicable are for overnight positions.

      Hope this helps,

      Cheers,

      • Mayuresh Kemkar says:

        Thank you so much sir your answer clears lot of my queries … I have complete confidence on Zerodha .. its is the
        best !!
        as per your suggestion I have mentioned long and short strike prizes for either of the contracts executed at the same time.
        GBP long 5 lots Jan 100.07
        GBP Short 5 lots DEC 100.10

        also ,Sir as I am new to this field , Sry to bother you with the same point once again.. continuing for above condition overnight position how much amount gets blocked as margin blocked ?
        1. 7,568 (SPAN)
        2. 13,752 (Second call’s margin)
        3. 8,422 (Total margin)
        4. 13,892 (First Call’s margin)
        5. 13892+13752 (1st +2nd Call’s margin)

        Thanks

        • 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.

          The Total margin (8422), is what will be blocked in your trading account.

          Cheers,

  13. Mayuresh Kemkar says:

    Thank you so much sir… 🙂

  14. Sachin says:

    Hi Nithin, Many of the features of Nest Trader (PC) are not available on Mobile (Android). Is there any upgrade planned?

  15. Waman says:

    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 18300 gets blocked, so can we short an option with just 18300 in our account or do we need the whole amount 31625 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 31625 to take the trade, but once you take the trade the premium gets credited to your trading account, effectively blocking only around 18k. If you use MIS, it will be 40% of that amount, the premium received will still be the same, but the positions will get squared off at 3.20pm.

  16. Sai Kiran says:

    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.

    Example: 6300/6400 Bear Vertical Call Spread: Sell 6300 Jan Call at 132, and Buy 6400 Jan Call at 78, for a credit of (132-78) 54 points. The maximum possible loss should be the difference between the strikes (6400-6300=100), which is 5000/- per lot, and after adjusting for the credit received, (100-54=46 points loss) maximum loss should be 2300.

    In-spite of the above, the actual total margin charged is 21,466 comprising of (Span margin: 9,550 Exposure Margin: 9,456 and Premium receivable: 2,460

  17. Peter says:

    I didn’t understand leverage let me take example : current nifty strike is 6340, I have just Rs.500/- in my account, current LTP of 6400 CE is Rs.20 since I don’t have Rs.1000/- I am unable to buy CE with NRML, I selected MIS but still not able to buy (error : RMS exceeds ….) why ? can you explain how much I should have minimum balance in my account for this example ?

    • Hanan says:

      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.

      • Peter says:

        Thanks Hanan, I wasn’t knowing about it. in SPAN calculator http://zerodha.com/margin-calculator/SPAN/ under the main category “Product” there is subcategory “options” 2nd one, so I confused. 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.

          • Peter says:

            Thank you..Nithin please upgrade trading module… because back office login requires IE, you might aware Linux distributions doesn’t come with IE … please make something common which works with all browsers… and Zconnect app is very poor I must say… strike rates are not getting updated on Z5 regularly… I read many issues like min max are not getting updated in script something like that on google.. Zerodha is 95% good in all aspects in India but this remaining 5% application related issue need to be solved.

  18. NagabhushanS says:

    Hello Nithin,

    I am trying to learn the Margin trading on *NIFTY options* and have experience in NRML trading. 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. the issue was that the script dropdown list was not populated with details irrespective of what i select in Exchange and Product. Is there any issue now (29 Jan 2014).

    My another question is: To know the Margin amount for Margin trading on Nifty options, I logged into Backoffice and downloaded the “Margin Details and Position Limits” is this the right file to learn about today’s Margin leverages?

    in that file I read the rows but could not understand certain technical terminologies, could you please help me to understand those, the details are here below

    with Rs. 10,0000 how much Margin can I leverage to buy nifty Feb series 6000 option?

    Sl no 296
    Script Name NIFTY
    Expiry 30/01/2014
    Rate 6139.40
    Lot Size 50
    SPAN * Margin % 5.00
    SPAN Amount(A) 15352.00 ——— what does this detail mean?
    Exposure Margin% 3.00
    Exposure Mrgn Amt(B) 9209.10—– what does this detail mean?
    Total % 8.0
    Total Amount 24561.10 —————– what does this detail mean?
    Spread Margin N Month 1.03
    Position Limit Client-wise 22475445 — what does this detail mean?
    STOCK FUTURE Limit TM/FII’s-wise –
    OVER ALL Limit TM/FII’s-wise –
    Position Limit Market Wide –
    PDEOD Open-Int Qty –
    PDEOD Open-Int % –

  19. amit sahoo says:

    hi nithin,

    your span calculator is not working properly….

    could you say how much margin required to

    1) sell nifty call 6100 @ 109 feb series
    2) sell nifty put 6100 @ 100 feb series

    kindly help me in detail ….. margin required for day trading & overnight

    • Amit,

      It seems to be working alright, Choose NFO, options, Symbol as Nifty Feb, Option type as calls or puts, mention the strike as 6100, Net quantity as 50, tick on the sell option, and click add..

      1. Margin for shorting 6100 calls: 23687
      2. Margin for shorting 6100 puts: 23492

      if you take both positions together, you don’t get any margin benefit as such.

  20. MohanReddy says:

    sir i entered my strategy in span margin calculator then it shows

    span margin
    68000
    expousure margin
    82000
    total margin
    980000
    margin benefit 1,13,240

    then it seems how much cash i need for hold this strategy for delivery for 15 days…

  21. swapnil says:

    Dear Nitin,
    SPAN Calculator is not working. It’s not showing any output when we entered all inputs.
    Please look into. No doubt It is very important and useful tool

  22. coolblr says:

    It would be great if the SPAN page for options is made something like this; http://nseindia.com/live_market/dynaContent/live_watch/option_chain/optionKeys.jsp?symbolCode=-10006&symbol=NIFTY&symbol=NIFTY&instrument=-&date=-&segmentLink=17&symbolCount=2&segmentLink=17 So one could add the strategy, just by clicking on the contract they want to trade (Buy/Sell) and just add the quantity, if its multi-leg. Eventually for options if you could add the payout graph for the strategy chosen that will be amazing 🙂

    PS. There is a check which says – you are posting too quickly, SLOW DOWN. LOL

  23. coolblr says:

    That is cool. Do you have a working version of Beta?!

  24. Pugazh says:

    Can I use my existing stocks (Purchased for long term) as collateral for margin requirements? How do I do it? Please explain

    • Yes you can, shoot an email to india@zerodha.com and siva@zerodha.com, requesting to pledge your stock as collateral. As soon as you do it, the margin after haircut will be released to your trading account. Note that you will be still required to maintain 10% of the margin required for futures as cash, for any probably MTM losses. So as an example, if you give Rs 1lk worth of stock as collateral which has haircut of 20%, Rs 80,000 will be available in your trading account. If you wish to now trade 2 lots of nifty futures which require margin of around Rs 50,000, you can use Rs 45000 from the collateral, but you will need to have Rs 5000 (10%) as cash in your trading account.

      Hopefully this clarifies.

      Cheers,

  25. anand says:

    Span calculator not working for the past 2 days?

  26. Muthu says:

    what is– total transaction charges in each trade and why it is more for F & O option ( compared to other in your brokerage calculator when the turnover is much less )

    • Muthu, in futures and options, your turnover is not the margin turnover but your entire contract turnover. So for example, if you buy and sell 1 lot of future with a margin of Rs 25000, the margin turnover is Rs 50,000, but the contract turnover is Rs 6lks +. Total Transaction charges include exchange charges and clearing charges.

  27. Muthu says:

    Hi Mr.Nitin,
    Thank you for the reply. This is with reference to your brokerage calculator. For equity – both delivery and intraday, F&O – Future where the turnover is Rs.8,40,000, the total transaction charge is Rs.32.76 whereas for F&O – options, for a turnover of just Rs.84,000 the transaction charge is Rs.66.36. 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 84000 in options, it could mean for example buy and sell of 20 lots of Nifty options trading at Rs 40. Whereas a turnover of 8.4lks on futures is equal to less than just 2 lots of futures. For futures it is 0.0039% of contract turnover and for options it is 0.079% of premium turnover.

  28. Sibi Chakravarthy says:

    I cant trade during live markets….so i usually preset my orders using amo….today also i had placed my order fr buying reliance power at 62.3 in MIS mode ….but my order got rejected…and the rejection reason was “16418:order with invalid attributes rejected by system”…where could the problem possibly be? I am sure i have placed orders at similar prices, quantity earlier with no issue…please do the needful…

  29. Manish Keshruwala says:

    The margin calculator does not have all the contracts for Commodities. Lead, Zinc, Gold Petal, etc are missing. Pls look into the issue

  30. Nitesh sharma says:

    hi nithin want to know the margin for natural gas not able to see the same in span calculator

  31. sibi says:

    hi nithin,
    i usually place a quantity of 2500…and this time too i placed the same quantity….may i kno why this new restriction on amo is for? also please suggest alternatives to carry out my order of above given specifications…

    • 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. That quantity restriction we have placed on a bunch of clients, who have been placing 100’s of dummy AMO orders. There is no such restriction on your account, you can try placing it again tomorrow.

      Cheers,

  32. renjithppaul says:

    is it possible for a customer having a Trading account for both commodity & Equity,FNO , to transfer his funds from one segment to another, than taking payout and making Payin.

    • No Renjith, this is not allowed by the exchanges and the regulators. Funds in equity can be used for equity, FNO and currency, and funds in commodity has to be kept separately, and funds can’t be transferred between them. Only way is to take a payout and then payin

  33. RVKr says:

    What’s span margin % rate for shorting option, In span calculator looks like it’s low campare to future span margin and exposure’s almost same

    • RV,

      The SPAN margin % varies for every option strike, there is no fixed rule, and that is one of the reasons for putting up a calculator that lets you find out option writing margin requirements.

  34. RVKr says:

    That’s ok ,but calculator showing total margin which includes receivable premium,Q1- Is total showing margin required for completing short transaction or Q2- Only span+exposure margin required for transaction ?

  35. Kaushal Mehta says:

    Hi,
    I am not getting margin details for MCX contracts.

  36. Gyan says:

    Dear Nithin
    I am using NSE now software, so I understand that margin requirement calculate by SPAN calculator won’t be 100% right. My account id 13906-*****. I put my open position(as of 9th March 2014) in SPAN calculator and it showed me below details
    SPAN margin = INR 478111, Exposure margin = 219145, margin benefit = INR 15000
    But then I looked at my account balance in backoffice,
    SPAN Margin Debit. ******* 352354.750
    Exposure Margin Debit. ****** 218694.100

    Why SPAN margin is very different?

    I have one more query which is regarding “F&O Obligation Amount” in Account balance sheet of backoffice.
    it is showing
    07/03/2014 F&O Obligation Amount Credit 4286.960
    But when I checked Profit & Loss report for 7th March 2014, it shows completely different picture( around profit of INR 15000).?

    Rgds
    Gyan

  37. patel says:

    Respected sir i have a little question in span margin

    if current market nifty is @ 6500
    if i sell call @ 6400 & sell put @ 6600 and i buy call @ 6500 and buy put @ 6500 when i enter in your span margin i get some amount in TOTAL MARGIN row, all are including in TOTAL MARGIN or i have to pay PREMIUM FOR CALL & PUT BUY EXTRA, i mean for this four postion i have only invest TOTAL MARGIN row in span calucator or (TOTAL MARGIN + CALL & PUT BUYSIDE PREMIUM)

    • Patel,

      The SPAN shows the margin required, the premium required to buy options will be separate, so yeah Total Margin + Premium to buy the options.

      • patel says:

        Respected sir i have enter my date in zerodha span calculator i have get result as under

        STRIKE QTY SPAN EXPOSE TOTAL
        6400 C 50 S 9800 9853 30431
        6600 P 50 S 9800 9854 26264
        6500 C 50 B -2715
        6500 P 50 B -1069
        TOTAL 52910

        COMBINE MARING REQUIREMENT BOX
        SPAN MARGIN 19600
        EXPOSE MARGIN 19712
        PREMIUM RECEIVABLE 5483
        TOTAL MARGIN 44795
        MARGIN BENEFIT 8115

        My question is that i have requirement fund only Rs.44795/- for above four position or i have to pay extra amount as a premium for 6500 c & p buy, please guide me, thanks

        • Patel,

          You will need 44795 + 2715 + 1069 (your buy premium values)

          • patel says:

            sir i have to only need 44795 + 2715 + 1069 = 48579 for first trade when i sell 6400 c sell how much margin required? and then sell 6600 p sell how much margin require? 6600 p margin depend upon previous position, and after i buy call & put of 6500, i have to pay first fully premium or depend upon previous postion…………. according to me sir if in my account on rs. 48579/- can i put up this four postion or i have to more amount for trade step by step and after credit margin in my account and margin block Rs.48579/- only, if exchange want more amount up to execute order there is no meaning for less margin Rs.48579/- if i have to credit 60000 or 70000 or more for trade up to excute order?

            other question is that spread order for future only when i sell & buy different month, i can buy or sell in spread order but i want to only one side position for squre off, is it possible? if yes, after pending position how much margin i have to block or pay

            • Patel,

              Margin required to set this up will not be more than 48759, you can use the SPAN calculator to see how much is required to first sell 6400 CE and then check for 6600 PE. You will get to know the individual margins required.
              No not possible for your second query.

  38. Shivam says:

    Hi Nithin,

    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 2014. 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. 31,592 (for strike price of 6700). Can you please explain why the margin should be so high even for such a hedged position?

    Thanks in advance.
    -Shivam

  39. Kalyan says:

    When i try to calculate the exposure required to buy an in the money option eg. 6900 PE, it is showing a negative amount, is there something wrong with the tool

  40. raoshahb says:

    if span calculator is showing the following data then how much money should be there in my account to hold this position for overnight …

    SPAN margin Rs: 3,411
    Exposure margin Rs: 19,373
    Spread benefit ? Rs: 16,150
    Total margin ? Rs: 6,635

    Can i hold this position if I have only 11k left in my account.

    • raoshahb says:

      i mean how much money is required to take this position initially..

    • Total margin is the money required for holding this position, which in your case shows 6.6k, so yes you can hold this position with 11k in your account. 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.

      Cheers,

  41. Bushan says:

    In the SPAN calculator, i have entered sell 6900 PE MAY 150 units and the margin requirements are :
    SPAN Margin – 52,305
    Exposure Margin – 32,004
    Premium receivable – 20,005
    Total Margin – 84,309.

    MY question is:
    1. When i enter the contract (i.e. short NIFTY 6900 150 units), in my trading account I should have Rs.84,309/- or 84,309 minus 20,005 (premium receivable) = Rs.64,304/- to successfully complete the transaction?

    2. IF the above answer is Rs.84,309/- then how much money I will be left or blocked for trading after completing the above transaction?

    3. Finally, if the above transaction is MIS then how much of margin will be required to execute the trade?

    • 1. You need 84309
      2. Once you take the position, the premium receivable is credited to your account, so your account balance will start showing 104314, but margin blocked will be 84309
      3. If it is MIS, you will need 40% of this 84309, but the premium is credited on T+1 day, so you won’t get the benefit of the premium credited for the same day.

  42. Bushan says:

    Thanks.
    SPAN calculator shows the premium amount for yesterday’s closing price. However, in reality, the premium credited will be based on the price at the time of entering into a contract correct?

  43. Shobha says:

    Hi ,
    If I write in deep Out of Money Options, margin requirement is huge. unlike for In the Money option
    Say, NIFTY Spot at 7000.
    Days to Expiry = 10

    I Sell PUT 1 Lot of Strike Price 6500 at 10Rs premium each. Margin is ~22,000 – 500 = Rs.21,500

    Now Lets say I make another trade,
    I Sell CALL 1 Lot of Strike Price 7500 at 10Rs premium each.It needs additional Margin of Rs. 21,500

    Making total margin of 43,000 for trades. Its getting simple summed up. Shouldn’t it take into account that Targets are pretty far and account for days left and Volatility.

    There should be some facility for margins of deep out of money trades.

  44. Manish says:

    hi

    Hi
    i am one of the Zerodha user and want to know that
    1. How the contract value in options are matched on expiry ?
    2. Is it matched with the rate quoted by the buyers?
    pls explain with example.
    Thanks

    • All options on expiry is settled based on the underlying price. So for example if you have Nifty 7400 calls and you don’t sell and if Nifty the underlying closes at 7410, your calls are settled at Rs 10 and not what is quoted by buyers.

  45. Sukesh says:

    Hello,

    I was trying to calculate the margin requirements using the below link of Zerodha:

    https://zerodha.com/margin-calculator/SPAN

    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? try using the chrome or firefox and see. When you add it automatically calculates, so there is no calculate button.

  46. ns says:

    Can i use futures as covered position too sell calls?

  47. Googol says:

    Seems there is some problem.. Its showing N/A when i added a 140 put of IDFC along with IDFC future.. and ZT 3.11.2 dont hav span calculator ryte ??

  48. MohanReddy says:

    Sir how can we use NSE amount for MCX orders…. is there any optiion

  49. Projjwal says:

    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.

    Can you please clarify this why this is the case for option?

    • 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.

  50. Mohsin says:

    Do we have to pay any interest on the margin amount on future trading if I hold the stock the till the expiry date.

  51. Poovhen says:

    Please update the SPAN calculator for margin calculation of those index contracts whose option buying has been recently enabled. Thanks!

  52. hello
    if we sell 10 lot of nifty option like 4 lot 7700 call 4 lot of 7300 put , a lot of 7500 call and 1 lot of 7500 put
    and buy 8 lot of nifty option like 4 lot of 7300 call, 4 lot of 7700 put
    and trade in 2 lot of each in nifty & bank nifty future.
    how much fund required for all of this

  53. Ravi Kiran says:

    Dear Nithin,

    Launch ‘PI’ at the earliest possible time, waiting for it 🙂

  54. Bushan says:

    Hi,
    Why can’t the SPAN calculator use the current market price instead of yesterday’s closing price for calculating the margins required for writing a contract?

  55. vishal says:

    how much margin for BFO BSX ??? intra and positional and where to check it ?

  56. ram says:

    SPAN calculato is not working after market hours? I am using Google chrome browser.

  57. chandavar nanjappa krishnamurthy says:

    what is the procedure for writing covered calls. for ex. if I have 250 RIL shares in my account and if I want to write a call for Rs 1100, what will be be the margin ?

  58. kiran says:

    Hi ,
    Is margin available on selected stocks of equity or all the stocks in NSE ?

  59. vinayak says:

    I’m not sure this is a SPAN calculator related question, possibly a more fundamental question:

    I tried to calculate the margin requirements for buying one lot (50) of NIFTY along with a purchase of one lot of Put Options (priced 8300, Nifty is below 8000 right now); both expiring OCT. The overall position has no net downside risk (any downside in Futures covered fully with the PE options which by themselves are risk-free) Upside “risk” is my potential payoff (rather than the exchange’s)

    Yet the SPAN calculator calculates a pretty large margin requirement for BOTH exposure margin and SPAN (again, there is no statistical risk)

    Can somebody explain to me why is that? Is there something wrong in my assumptions?

    • 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 happens, 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.

      So unless the spreads itself trade on the exchange, margin won’t get reduced to the extent that you are looking at.

  60. DN0947 says:

    Hi,
    In your Span calculator @ https://zerodha.com/margin-calculator/SPAN/, not all commodities are listed under MCX. When I go to https://zerodha.com/margin-calculator/Commodity/ page, all items are mentioned but I cannot create a bouquet of commodities and calculate the margin requirements in one shot.
    Can you help? I need to find out the collective margin of all my commodities.
    Thanks.

  61. DN0947 says:

    Hi,

    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. Can you point me to SEBI website because you are the only one which is following SEBI’s guidelines religiously, if that is the case?

    Your log in process is annoying & take more time, would request you to disable all that and make the log in as quick as possible.

    Hope you understand,

    Thanks.

  62. DN0947 says:

    Hi,

    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.

    I was told you are 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?

    Eagerly looking to move to a better software,

    Thanks.

  63. Manohar says:

    Hi Sir,

    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

    Thanks in advance for your help and support

    • You can either use the SPAN or use our futures margin calculator . The margin required presently for 1 lot is 100618 for overnight position. If you want to trade this for intraday, it is 40% of this, but you will need to use the product type as MIS while placing the order. Check this post.

      • Manohar says:

        Thank you Sir for your reply,

        Overnight position means till Expiry date, can i sell on or before expiry date

        • Yes, you can sell on or before expiry date.

          • Manohar says:

            Hi Nithin,

            Thank you,

            could you please let me know the difference between Equity Intraday and Futures Inraday, only the Margin amount is different?

            • Yeah margin amount is different, in equity there is no lot size,but in futures you have to buy/sell as multiple of lots.

              • Manohar says:

                Thank you Nithin,

                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.

                  • Manohar says:

                    Thank you SO much, i Would like to open account with Zerodha, DO we have call and trade option

                  • Manohar says:

                    If i send all mandatory documents , in how many days account will be opened and when can i trade

                  • Manohar says:

                    Thank you SO much for ur patience,

                    Could you also please clarify, If i buy futures under Normal with Expiry date jan 2015 and if i sell before expiry , amount will be credited on the same day when i sell or do i need to wait till the expiry date

                    2) can i sell futures partly( like one lot one time and others at different time)

                    • 1. When you buy futures a margin is blocked, and that margin gets unblocked as soon as you exit the position, i.e immediately. The profits made on a particular day is credited on the next day, and losses are debited the same day from your account.

                      2. Yes, if you have 5 lots, you can break this up and sell as and how you wish.

  64. S JOSHI says:

    Thank You.
    One appreciates food best after famine.
    Similarly, Zerodha is best appreciated by someone who till date was paying >Rs 50 per option lot.

    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!).

    For me, it indeed is zero rodha.

    Regards
    A very satisfied customer.

  65. Kailas says:

    I have 100000 Rs Margin benefit through pledged shares.
    I do not trade in futures. I intend to short out of the money options only.
    Do I still need to keep 10% cash in order to use the margin?

    • No, we have removed the 10% cash rule now. 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.

  66. pradeep says:

    The span margin calculator in zerodha website doesn’t seem to work. Margins are not calculated and also when i add another leg, it just replaced the first one (at the bottom list). Dear Nithin sir, please advise.
    Pradeep Muthappa

  67. Seetharaman M S says:

    SPAN MARGIN CALCULATOR NOT WORKING!!

  68. AK Srivastava says:

    Span Margin Calculator is not working..

  69. Ashwini says:

    Hi,
    I am not able to see MIS Vs NRML margin requirements. Can you please guide me the right place.Thanks !

  70. Tanishq.Capital says:

    Zerodha SPAN and Equity MArgin calulator in ZERODHA.COM Not working for last 3/4 days…Please check

  71. Alok says:

    Why Zerodha Span for CD is not working ?

  72. Keshav says:

    Hi,

    I just noticed that Natural Gas is missing from the list under SPAM -> Commodities. Kindly let me know the margin requirement.

    Thanks

  73. Ram says:

    Hi,

    1) Could I pledge securities and use the margin for intraday trades?
    2) Could I pledge securites and trade on Currency derivatives?
    3) What is the cost of pledge?
    4) How to revoke pledge?

    • 1. Yes, for intraday futures and option writing trades.
      2. Yes, currency futures and option writing trades

      *Option buying is not allowed.

      3. around Rs 55 for a complete round trip of pledge/unpledge for every scrip pledged.
      4. To pledge, you have to send an email to support@zerodha.com, and same to revoke. We will soon have this available on Q itself.

  74. Umesh says:

    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 8200 PE 29 Jan 2015. the details which I receive from the spam calculator are

    Combined margin requirements
    SPAN margin
    Rs: 6,826
    Exposure margin
    Rs: 6,225
    Premium receivable ?
    Rs: 551
    Total margin ?
    Rs: 13,051
    Now my question is with about 16 days to expiry the margin which I have to provide is Rs 13,051 for the above contract. does this margin will remain constant till the expiry if the price of underlying move in the favorable direction to my trade? also if the price moves adversely then how will the margin increase? If Nifty expires at 8201 will I be keeping the above premium and the margin? Pl reply

    • 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 above 8200, you get to keep all the premium. Margin is anyway always in your account. Check this post on option writing.

  75. S Mohan says:

    Dear sir,

    I am an new trader to zerodha platform , just checking the margin calculator before starting active trading..
    Example :
    Unitech option buy strike price =20,00 Price = 2.65 Margin required = र 23,850.00 since 2.65 *9000 is the maximum amount which we loose if option expire worthless.

    But in Zerodha span calculator total margin = 0 .. Will this work only for span , if i want to calculate individual margin where to can i his info

    Thanks,
    Mohan.S

    • Mohan, while buying options there is no concept called margins. You need only the premium to buy. So in your example, you need only Rs 23850 to buy. Since there is no margin, if you add buy option positions, the span calculator will show 0.

  76. R Ganesan says:

    I checked with zerodha margin calculator yesterday.

    No margins are getting displayed and N/A is appearing. Pl. check.

  77. Anil Pandav says:

    Hi Sir/Madam,
    I want to know that if i am going for short sell a nifty call or put option or a stock option at the begining of a month and buying it back (for square off my position) on 1 or 2 days before the expiry of that option, would it cost me any panalty for that? Can i trade in that way.

    Please reply on this. Thanks in advance for your support. You can reply on email id- anilpandav@ymail.com

  78. A.N.Charlu says:

    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?
    Thanks.

  79. A.N.Charlu says:

    Hi Nitin

    Can you please confirm the correctness of the following span margin calculated :

  80. Anil Pandav says:

    Hi,

    when I calculated the margin requirement for writing 7900 apr 2015 put and 9300 apr 2015 call, it show me 104500 and my receivable premium is only 1555. why it is so??? It means that it requires 67 times of premium. Please reply.

    • Anil what the SPAN shows is what our exchanges ask for. This is not something that is in our hand. When you write 7900 puts and 9300 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 7000 or 10000, your loss could be quite a bit. Since there is an unlimited risk, a higher margin is charged. But if you bought say a 7800 put and 9400 call along with this, your risk is completely hedged. You will see the drop in margins.

      Best,

  81. Anil says:

    Hi Nithin,

    I have calculated the margin by adding buy position of 7800 put and 9400 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?

    Thanks in advance for your support.

  82. Mahadish says:

    Sir,

    As seen in the below screenshot, total margin required for Reliance future 1 lot is Rs. 25742.
    If in my account i have 26000, and i buy 1 lot. But at EOD i am at a loss of say 5000 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. But yes, our RMS team waits for upto around 20% below this value. 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.

  83. Krishnamurthy B. says:

    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) 100 NIFTY May-2015 Put Options @ Strike Price 8500, and simultaneously Buy 100 NIFTY May-2015 Put Options @ Strike Price 8800.
    I understand that I have to pay the difference in premium between the bought Puts and sold Puts (because the sold 8500 Put is cheaper), but 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. 17000+ for this case – almost the same Margin as for the reverse case of Short Sell 100 Puts @8800 and Buy 100 Puts @8500 (where a risk exposure of Rs. 30,000 exists) ?
    Is this a case that is simply not handled correctly in the SPAN calculator’s code, or is there some crazy logic to this ?
    (BTW, don’t ask how one will make money selling 8500 Puts and buying 8800 Puts… It makes sense when premium diff between the Puts is << 300 and one feels that NIFTY is sure to close below 8500… but it works only if the Margin requirement for the spread is 0 or very low…)
    Thanks. Krish.

    • Krishnamurthy B. says:

      Sorry… a couple of mistakes in the example above…
      – The quantity of options I calculated with was 25, not 100 as mentioned above.
      – I earlier saw only total at the bottom of the table of individual margins, which was Rs. 17000+.
      The “combined margin requirement” table shows the total margin of ~ Rs. 8000.
      This is lower than in the reverse case (where it is Rs. 17,000+), but still, my question stands !!
      Why is there a margin required in my example case?
      Thanks.
      Regards, Krish

      • 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 8500 put when you are long 8800 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 8800 puts first? Because if you do, then you will now have naked short 8500 puts with unlimited risk, maybe with not enough margin in your account. What if you intend to exit both, 8800 puts get filled because it was liquid, and 8500 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.
        Hopefully clarifies.

        • Krishnamurthy B. says:

          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 by NSE is not rational. If I attempt to close my Long 8800 Puts before my Short 8500 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.
          Besides, this is a standard strategy named Bear Put Spreads (or Long Put Spreads), for which NO OTHER Exchange/Broker IN THE WORLD outside India charges a Margin. You can check it out at CBOE’s margin calculator site: http://www.cboe.com/tradtool/mcalc/.
          They 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 NSE uses.
          So, NSE charging these high Margins on such Long Spreads is really highway robbery (swallowing like a month’s worth of Interest on the undue Margin money)…
          As an individual investor, I have little leverage to protest this with NSE. 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. Krish

  84. anand mody says:

    pl inform me what shall be the margin to be placed with your company if:

    I wish to write (short) a call and a put for INTRADAY trade of different strike price/s or how many calls and puts (equal numbers ) your system allows per ONE lac of rupees as of today

  85. Karthik says:

    I am thinking of investing in Goldman Sachs Mutual Fund – Nifty Junior ETF

    1) Can I use this as collaterals for option trading.

    2) What would be the haircut for this fund? where can I see the haircut for any fund/stock?

    3) Please confirm my understanding that ETFs cannot be purchased through the fundhouse, they can only be purchased through a broker like zerodha

    4) whatever amount span margin comes up with for a particular set of options, the ETF holdings can be considered for 90% of the margin & 10% of the margin has to be held in cash. Is that correct?

    • 1. 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).
      2. Haircut will be around 15%, this is the link for all approved stocks. It currently doesn’t show haircut %, we will try to incorporate this soon.
      3. yes, ETF: Exchange traded funds, so you need a broker to buy ETF’s
      4. Yes there is no mandate to keep 10% cash, but it is best to keep so that in case of any loss, this cash component can cover that.

      • Karthik says:

        Thanks for the prompt reply.
        Regarding Point 1), If I sell 8800 Call and buy 9000 Call, then I dont need any cash for buying the 9000 call right?

        • You will Karthik, the money that you receive from shorting 8800 calls get credited to you only on T+1. So if you buy 9000 call immediately, you need cash, but if you buy it tomm you will not need.

  86. AYUSHSCZDH says:

    Dear Nitin,

    My Zerodha ID is DA0755. I need to know one thing whether zerodha can trade with client money without the client permission. As today on 24-06-2015 i came across a situation where cash balance shown in back office (q.zerodha.com) before the start of trading session on 24 -06-2015 was positive and same was also confirmed by the zerodha employee over the phone ( screen shot and telephone recording can be sent if required), limit shown on trade.zerodha.com is negative (screen shot can be sent if required and because of wrong negative balance my two order could not be placed having far less value than the cash reserve shown in backoffice ) and by the end of the day around 0007 hrs (25-06-2015) my cash value was also different altogether (Screen shot can be sent if required).

    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. I have attached the screenshot for your reference also.

    Picture 1 – Negative RMS limit shown in the order book status. Totally wrong.

    • Guess this issue had happened because you had looked at Q while the trade process was running in the evening. During trade process, one step is when yesterday’s margin gets debited and then new margin for the day is applied. If you would have looked at Q during this process, account balance would have shown wrong.

  87. Abhisekh Mitra says:

    When will it be fixed?

  88. SALIL says:

    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.
    eg. Nifty Near Month JUL 2015 – (25 qty)
    PC SPAN shows approx 14500 – 1500
    Zerodha show apporx – 10500- 11000
    I was wondering if you use only the 16th scenario. I can see that as per SPAN Max Loss value seen from 1-16 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.
    Your help in this regard will be highly appreciated. Thanking you in anticipation.

    • Salil, what exchanges ask us to collect is SPAN + exposure. Don’t think PC SPAN can calculate Exposure margins. Don’t have the answer for this because the SPAN calculation is coded within the OMS/RMS and this is maintained by our technology vendor (Thomson Reuters). I will try to find out from them though.

      • SALIL says:

        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. I sincerely appreciate your effort of looking into your RMS/OMS for me. Awaiting your reply.

        • Salil our vendors are clueless about this. Since the OMS is not our in house product, can’t really give you an answer. But I can tell you this that what we block matches what exchanges ask us for. So the SPAN calculations done by our OMS/RMS is as per NSE requirement.

      • SALIL says:

        I have found the answer for the difference, there is no need to ask your OMS/RMS Vendor. When I used the SPN file ending with _1 from NSEs website the PC SPAN values matches your calculation.

        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.

  89. Karthik says:

    Hi Nithin

    If I trade an iron condor,
    say nifty is at 8400 spot
    I write a 8800 call, buy a 9000 call
    I write a 8000 put, buy a 7800 put

    Is there some way by which I can place an automatic conditional order like this –
    for eg. if nifty is at 8100 or 8700 I would like to close all 4 legs of the iron condor.

    Please advise.
    Thanks

  90. M Karthick says:

    Is the NSE Derivative SPAN Margin same for all members ?

  91. Santosh More says:

    Hi,
    Please explain me the difference between ‘Span Margin’, ‘Exposure Margin’, and ‘Total Margin’
    Thanks,
    Santosh

    • SPAN margin is the minimum margin stipulated by exchange. Exposure is the margin over and above SPAN that exchanges ask broker to keep. Total = SPAN + Exposure, and total is what is required to take a position.

  92. sabu says:

    Hello Mr Nithin Kamath,

    The issue raised by AYUSHSCZDH on 25 Jun 2015 at 12:18 AM is a serious one and you have not yet responded to it. I was in the process of finalizing opening of a trading account with Zerodha. But after AYUSHSCZDH’s comments on the limit money, I am forced to re-think about the same. A response to the issue by you will benefit prospective traders.

    • Have answered that query: Guess this issue had happened because you had looked at Q while the trade process was running in the evening. During trade process, one step is when yesterday’s margin gets debited and then new margin for the day is applied. If you would have looked at Q during this process, account balance would have shown wrong.

  93. Shibashis says:

    Hi Mr Nithin Kamath,
    I have a query on below describe strategy:

    What will be the minimum account balance required for initiate this trade tomorrow (normal Order).

    Do, I need to place BUY order first as I don’t have account balance required for “total margin” SELL order?

  94. Samaneh says:

    Hi Mr Nithin Kamath,

    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 .

    Thanks.

  95. Abhishek says:

    Hi Nithin,

    I know the lot size is increasing from November to 75. But has the margin requirement for writing options also increased? The Span calculator is showing that writing one 7000PE for November expiry will require Rs. 50,756. I would have thought that the margin required would simply triple from before, but this shows that the margin requirement has almost quadrupled.

    Abhishek

  96. Harshit says:

    The Span calculator is not working. Pls fix it.

  97. Satish says:

    Hi. I want to sell the nifty call option for strike 9000 date DEC 2016. Repeat DEC 2016. 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.

  98. naidu says:

    sir, bank nifty option , strike rate 17000 call and put and nifty stike 7800 call and put –sell option for both and the carry overnight, please tell me the approximate the the margin money required.
    sir i am layman, so please tell me in figures..i dont understand your calculator.
    tell me approximate +- figure .
    waiting

  99. Rajesh M says:

    Hi Nithin,
    When i hold stock of a company “ABC” and i want to write a call of the same company, since this is covered call would i get any margin benefit

  100. BALAJI says:

    Dear Nithin,

    is there difference in margin for selling options for same strike but different expires.

    Attached snap shop from calculator.

    Please help me understand how exposure margin is calculated.

    Thanks.

    • Yes, the margin goes up the longer the time to expiry. The far month options usually have much more exposure margin. Check this link, point 16.

      For futures on individual securities and sell positions in options on individual
      securities, the exposure margin is higher of 5% or 1.5 standard deviation of the
      LN returns of the security (in the underlying cash market) over the last 6 months
      period and is applied on the notional value of position.

  101. Gaurav Khandelwal says:

    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 – 8000 CE and PE for Feb series shows margin of Rs. 2.10 Lacs while RKSV site shows the margin for 98K. Request you to look into this.

  102. MADHAN says:

    FROM TODAY SPAN CALCULATER NOT WORKS ,MAYBE SYMBOL SELECTION TAG NOT WORKING,PLEASE CORRECT IT

  103. chandru says:

    Dear Nitin ,

    If i trade in Futures only , what margin is applicable in MIS Intraday .

    span margin or exposure margin or sum total of both ?

    chandru

  104. Siva K Sunku says:

    Hello Team,
    I am not able to calculate the margin for same month expiry options in SPAN calC.
    http://zerodha.com/z-connect/queries/stock-and-fo-queries/zerodha-span-calculator

    e.g.
    BUY CE 7900 28-JAN-16
    SELL CE 8100 28-JAN-16.

    When I enter second one , first row is getting deleted. (If expiry month is different, then it is allowing).
    Please correct the same.

    Thanks
    Siva

  105. kmsuryakumar says:

    HI Nitin,
    I am not able to put the below order.
    Using Margin Calculator for below orders, it is showing Total Margin: 23958 and Margin Benefit: 25526.
    NIFTY Jan16 7700 SELL
    NIFTY Jan16 7500 BUY

    I am having 60k in amount, definitely more than above combined.
    But,, when I am placing the orders in Kite, after placing first order, second order is getting failed with below reason, tried vice-versa, same error.
    STATUS MESSAGE
    RMS:Margin Exceeds,Required:73908.41, Available:60385.88 for entity account-DS5132 across exchange across segment across product

  106. Niket says:

    Hello nitinjisir,
    Today I have place 3L spread order nifty fut Jan buy ,sell nifty jan ce 7600,buy nifty Jan pe7800( 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..why is it so..is it not enough to have total margin money or if it is required total margin and benefit together at the time of spread order 3L..

    • 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.

      • Niket says:

        Thank u nitinji.I would also like to know when it gets automatically square off in spread order.does i am able to know when spread orders gets square off.does exposure margin plays vital role in such situations??

        • If you have a calendar spread in futures, nothing will be squared off unless one of the contracts expire.

          • NIKET says:

            thank u,when i put 3L order why the message below gets. System could not complete your transaction- ADMIN notified
            even i have sufficient cash,is there any technical problem or i have put wrong method.buy nifty jan fut,buy nifty pe ITM,sell nifty CE OTM.

  107. guptakl13 says:

    16418 : Order with Invalid attributes rejected by the system VKSPL-EQ

    • Hanan says:

      This is a rejection code directly from the exchange. It means that you’ve placed the order at a price or time or quantity which isn’t approved.

      1. Illiquid scrips in the Periodic Call Auction trade in hourly cycles, starting at 9:30. So from 9:30 to 10:15 (45 minutes) you can place orders. The exchange matches orders from 10:15 to 10:23 (8 minutes). Then there is a cool off time from 10:23 to :10:30 (7 minutes). This cycle is repeated 6 times during the day.
      2. Once you place your orders, you have to wait until the 45th minute for the exchange to start the execution process. Orders will be matched on price/time priority like always.
      3. If your order is not matched in a session, it will get cancelled and you have to place a fresh order again.

  108. kalyan says:

    The margin benefit option is not working when you put in the money + out of money option combination, please check and rectify

  109. ashish Gupta says:

    dear sir

    Please explain the margin required in Stock option
    eg 1-if I buy 1 lot call option HDFCbank jan strick price 1040ce at 12.30 when(hdfc price is 1038) then what is margin reqired . is that 12.30*500=6150 required or more
    2-if I buy 1 lot put option of cairn india of 100PE at 0.15 when ( cairn india price 117) then what is margin reqired . is that 0.15*3000 = 450 required or more

    please explain

    • Venu says:

      When you buy an option, margin required will always be: Lot Size * Premium payable. Your margin computation for both HDFC Bank and Cairn India is accurate.

  110. SKG says:

    I would like to know whether the requirement of 50% margin in cash and 50% by way of collateral is NSE/SEBI requirement or it is Zerodha requirement? This is with reference Zerodha communication dated 25th Jan 2016

  111. Tatai says:

    Hi Nithin,

    Today I am trying to place 3 leg order. As per span calculator ,Rs. 36000 is required. But although I have maintain 40000 in account, order is rejected due to higher amount is required. Please not, my buy order is already executed.
    Thanks,
    Shibashis

  112. Anoop Gadia says:

    Dear Nitin,
    I have read your story and your vision related to brokerage and new trading tools.

    I become 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:
    1. 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.
    2. Current issue i have USD short in my account with SPAN + EXPOSURE margin. one day before i have positive cash but due to market movement in the middle of day my cash is reduce to -900.00 mean total of SPAN margin and EXPOSURE margin is less by Rs.1000.

    as per my understanding if MTM is there than it may adjusted with exposure margin for the day and person can add money next day but with out my knowledge your support team square off my positions in middle of day only for Rs.900 even i have full SPAN and Exposure margin.

    I need clarification on this matter. i discussed with support team but no satisfactory answer received. also they are not giving any response.

    Regards
    Anoop Gadia

    • 1. Hmm.. on Now the payment gateway is available only for Axis and HDFC. You will have to do NEFT/IMPS if you have other banks.
      2. Any MTM losses below the SPAN+Exposure has to be met the same day. Exchanges block the entire SPAN +Exposure all the time from the broker. If margin in the account goes below SPAN on eod, exchanges even charge a penalty. Typically we don’t auto square off positions if margin in your account is above the minimum SPAN required. If your account balance drops by 60 to 70% from what is the money required for holding the position intraday, it will be auto squared off.

  113. Devang says:

    You Span margin calculator tool is excellent. I have some query in it. Can I upload Position in Excel and calculate total margin? Can it be possible to include Equity.

  114. Milind Khatavkar says:

    Hi Nitin,

    I wanted to know the margin amount required for “intra day” trade for Nifty or Bank Nifty option writing.

    Thank you,

  115. Sushil says:

    Nifty Options margin for Intraday trading:

    Scrip: NIFTY 25-Feb-2016 7100 CE costing 121/- each.
    Pre-condition: Say I have 1,00,000/- as cash position and there are no orders placed.

    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 short-sell 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 @ 15:27 hrs or say 15:28 hrs but for sure before 15:29 hrs as volume/liquidity dips around that time.

    • Venu says:

      Each lot will cost you 121*75 = 9075. 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 3.20 pm) or NRML (to carry forward the position to the next day). Time based orders aren’t available yet.

  116. projjwal says:

    Hi Nithin,

    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 25-30 days?

    e.g. if i want to sell/write 1lot nifty 31st March 7400CE on 25th Feb keeping the total margin (37400 INR using the SPAN calculator) can i hold it for 25-30 days and buy it on the 4th week of March?

    What if there is no Open interest for that lot at that point of time?

    • 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.

      • projjwal says:

        Hi Nithin,

        Thanks for your quick response.

        I have another question. If i don’t have the margin but try to write an option, will the system block the transaction or a penalty will be incurred for that?

        • Venu says:

          Ideally the system will not allow you to place the order in case you’re short of margins. In case it does, the onus of maintaining enough margins vests on you, failing which penalty will be levied for the deficit margin.

  117. DeepWater says:

    For this Iron Condor, The Max Risk is 15000. Why is zerodha charging very high margin. Could you please provide better margin for such trades. This would give better ROI for traders.

    Thanks

  118. Ankit says:

    Hello,

    Please clarify me that if I buy 10 Lots of XYZ @ Rs. 5. in one order.
    and one lot purchased at 9.30 am, one at 9.40 am, one 9.50 am so & so.
    then will the brokrage be same at Rs. 20/- flat ? order something else ?

  119. vishal kumar says:

    sir, if I trade through MIS or intraday same margin are required as positional trade.. if margin required for intaday as positional trade … so what the use of that 40% leverage amount….please clarify…

    t

  120. tarak says:

    some times span calculator does not work. I’ve a screen shot to show this..Not able to attach here.

    tarak

  121. Shikhar says:

    Hi.
    Do you think we have the provision to lower the margins for credit spreads in India? For instance
    As on May 3, 2016, I sell infy 1240 call at 10.5 and buy infy 1260 call at 7.3.
    My net credit is Rs. 3.2, and maximum loss is (1260-1240) + 3.2 = Approx 17. So with 500 lot size my maximum loss is Rs. 8500. So margin required should be around 8500. But its showing 76000 when i check on zerodha span?
    Thanks & Regards

  122. Durgesh says:

    Hi, suppose i have bought a call of nifty 8000 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.

  123. RAJESH SANGHAVI says:

    NSE FO. MARGINS ARE DIFFRENT FOR T+0 AND T+1 ? CAN CLARIFY

  124. Sandeep Deepak says:

    zerodha… provide 5day margin for stock trading…

  125. SHANKAR says:

    Why is there no option to calculate Span Margin for BN wekly options?

  126. garg10may says:

    Hi Nitin,

    I am trying to place the below order from the Kite, 20 lots.
    long Nifty Jun 7800 PE
    short Nifty Jun 7900 PE
    Even if there is no margin the maximum loss for this position shouldn’t exceed 1.5L but my sell order is getting rejected saying Margin required is 7+lakh. Same is being shown in the Margin Calculator tool, why is it so?

  127. Pankaj says:

    Dear Nithin,

    I want to trade in BNF weekly expiry Options.

    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?

  128. Prashanth K says:

    Nitin,

    Currently the margin showcased is based on current prices. Can you incorporate (a approximation if necessary) a What If Analysis where I know the margin based on if Nifty moves say 100 / 200 points either way (this becomes useful in strategies such as Straddle / Strangle where one leg can first become At the Money and then Out the Money unless its adjusted).

    Thanks

  129. Smitha says:

    am new to trading on PI. where can i check margin requirement before placing order. Do i always need to go on webpage ‘margin calculator’ or it can be quickly checked on pi itself?

  130. Prithvi says:

    I’m a newbie into all this options trading. 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.

      • Prithvi says:

        Of course sir, I have read a few other queries posted above, so yes, the margins are decided by the exchanges. I wasn’t questioning your motives sir. If anything I’m a fan of the transparency you guys provide, which is why I requested if your community (either Zerodha or the entire brokerage domain) might be able to fix the scenario. It may not happen any time soon, but I plan on trading for a while 🙂

        PS : Sorry if my previous query was obscure.

  131. Kyle D'souza says:

    How do I calculate the margin requirement for BANKNIFTY weekly expiry contracts? I could find only the near, next and far term contracts in the F&O margin calculator. Also, how do I calculate the margin required for long-dated NIFTY options?

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