Comment on SPAN Calculator

Vasantharam commented on 27 Sep 2016, 07:14 PM

If the exchange is deciding the margin then there is no use of SPAN Margin calculator.
Pls understand, my money management is as per zerodha’s span calculator margin only with some tolerance(Daily M to M loss/profit).
If the calculator shows INR 75K but the actual margin blocked was 1.7LAKHS. I hope on daily basis the margins used to vary, if this is for new position means fine(due to volatility variation) but already opened position its very difficult.
On what basis can i go for new strategy execution, kindly suggest.

For Eg) If today i am executing the short straddle and strangle in the same asset with the free cash available with me(For eg INR 1 Lakhs) and the blocked margin is INR 70k only but tomorrow if the exchange requires more margin and due to insufficient fund my positions would be closed in loss even though if my max loss in the strategy is 5% only.

If it so its very difficult to execute more strategies by retail traders.

How can we avoid this kind of issues?

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