Comment on Zerodha F&O margin Calculator

Nithin Kamath commented on 24 Mar 2015, 10:01 AM

Anil what the SPAN shows is what our exchanges ask for. This is not something that is in our hand. When you write 7900 puts and 9300 calls, you are still carrying a completely open risk position. So if tonight there is some extreme market news, and tomm if market opens at say 7000 or 10000, your loss could be quite a bit. Since there is an unlimited risk, a higher margin is charged. But if you bought say a 7800 put and 9400 call along with this, your risk is completely hedged. You will see the drop in margins.


View the full comment thread »