Comment on Basics on Options Shorting/Writing

Venu Madhav commented on 18 Nov 2015, 12:29 PM

The Margins are computed on a daily basis considering factors like change in underlying, volatility, time left for expiration. As these factors keep changing, margins also change accordingly. The Exchanges compute margins using a system called SPAN (Standard Portfolio Analysis of Risk) developed by Chicago Mercantile Exchange (CME).

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