Comment on SPAN Calculator

Nithin Kamath commented on 26 Sep 2013, 03:42 AM

Deepak,

SPAN is calculated on your entire portfolio of f&O and not just the short options.

you have long options also and this also plays determining the role in deciding how much the SPAN margin should be. A lot of people find it strange that how can margin go up when you are buying options along with shorting options, but it does as exchange calculates the SPAN based on entire portfolio of f&o.

If on the calculator you add the other position you have as well and check the SPAN totally it will match.

Hope this clarifies.

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