Zerodha SPAN Calculator

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SPAN Calculator

Traders,

Zerodha SPAN 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.

Zerodha SPAN 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 SPAN can be used,

For Future Margin Requirements

See the example below for Nifty November futures margin requirement.

Total Margin = SPAN + 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.

Zerodha SPAN for Futures Margin

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 + 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 mo