Comment on SPAN Calculator

Nithin Kamath commented on 06 Jan 2014, 09:46 AM

Arvind,

Margin required today is around 20k, you can calculate this yourself using the SPAN Calculator, Yes if the premium goes up you will have to pay the MTM, and if it is decreased the margin blocked reduces. When you short options, the entire premium is credited immediately to your account. For example, if Nifty 6500 calls is at Rs 50 and you have Rs 20,000 in your account, as soon as you take the short position your account balance will show Rs 20,000 + Rs 2500(in premium credit) and a margin of Rs 20,000 is blocked for short position.

Cheers,

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