Comment on SPAN Calculator

Vasantharam commented on 27 Sep 2016, 08:28 AM

In the month starting i had initiated a spread in Bharti Airtel.
Buy Sep Futures @ 347 and Buy 350 Put and the margin blocked was approx.INR 85000.
On 23rd Sep’16 i have initiated a straddle and strangle in the same Bharti airtel contract(Sep’16 expiry).
As per SPAN calculator the overall margin to be blocked is approx.INR 75000(Inclusive of initial Futures and Put options margin + Straddle and strangle margin).
But the blocked amount is approx. 1.7lakhs.
All my strategies are in the same asset only and loss is limited max of INR 10,000 irrespective of the market movement and SPAN is also showing INR 70K but in real scenario the blocked margin is more than double?
If it’s so for retail traders it’s very difficult to run multiple strategies by using the span calculator.
Kindly suggest and do the needful.

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