Comment on SPAN Calculator
Appreciate your initiative in educating investors.
I have 2 questions:
1st Question:
In the SPAN Calculator we have 3 fields to enter the quantity, i.e, ‘Buy Pending Quantity’, ‘Sell Pending Quantity’ & Net Quantity’.
Can you please tell me what is the difference between them and in what scenarios do we use them?
2nd Question:
I recently placed this order:
-> Buy Nifty 6000PE – Aug 2013
-> Buy Nifty 6100CE – Aug 2013
-> Sell Nifty 6000PE – Jul 2013 (Option Writing)
-> Sell Nifty 6100CD – Jul 2013 (Option Writing)
The Span calculator had shown a margin requirement of about 29500 however even after i entered the trade completely (after executing all the 4 orders) the margin blocked was about Rs:38,000/-
Why is there a difference between what SPAN calculator shows and what is blocked?
Am i missing something here?
Thanks