Comment on SPAN Calculator

Nithin Kamath commented on 23 Sep 2013, 07:28 AM

Lalitha,

To buy 2 lot of futures you need Rs 52k.

When you buy those 3 lots of puts, the risk of the futures reduces and hence the margin blocked will also reduce from 52k.

You can hold this position for overnight as long as yo are holding the puts. If you exit the puts then the margin requirement will automatically go up for the futures.

Hopefully this clarifies.

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