Comment on SPAN Calculator

Nithin Kamath commented on 08 Aug 2013, 10:29 AM

Hi satish,

You can use the Spread order for this, a 2L spread order. The issue with this though is that it has to be IOC(immediate or cancel), so if both the prices are not available it gets cancelled immediately.

Yes you can give stock as margin with us as well, but we don’t have an online interface for this yet, you will have to send an email to [email protected] and the margin will be provided by the next day morning.

Yes your losses are limited if you are short 100 calls and long 105 calls, but you would still need margins for the short calls as per exchange rules. But the good thing is that once you take the second position, the margin drops significantly. The blog above is a tool which tells you how much margin benefit exactly you get. If you are trading nifty options, use -50 for short options and 50 for long options, once added on the tool it will mention the exact margin benefit.

Cheers,

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