Comment on Basics on Options Shorting/Writing
commented on
07 Mar 2015, 02:43 PM
Dipesh, SPAN is the minimum that you need to have in your trading account to carry forward the position overnight. If the SPAN is not there, exchange puts a penalty. We ask for SPAN+exposure for overnight positions. If the margin drops below the minimum SPAN, you need to transfer more funds to ensure the positions don’t get squared off between 3 to 3.30pm. No, we don’t usually call before squaring off the positions.