Comment on SPAN Calculator

Madhura_Bhatwadekar commented on 05 Nov 2013, 06:51 PM

I have a detailed query:
When I want to do 2 transactions : Buy NIFTY6500Put and sell NIFTY6300Put,
as position is hedged, it requires very less margin of Rs.13859. (Rs.4480 as span margin + Rs.9379 as exposure margin) according to SPAN calculator.

But while actually placing these 2 orders, it is required to have total margin of Rs.23612 (margin required for selling Nifty6300Put => span margin of Rs. 14233 + exposure margin of 9379), though at the end-of-day, margin required comes to Rs.13859 again and around 10k is the balance margin end-of-day.

How can I do above 2 transactions when I have Rs. 20000 in my account, which is sufficient margin if I execute both the orders, but not sufficient if I sell 6300Put only.

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