Comment on SPAN Calculator

Nithin Kamath commented on 24 Dec 2015, 01:25 PM

Abhinav, margins are decided by the exchanges. Only calendar spreads trade directly on exchange, and hence get margin benefit. With all other option strategies, there is an execution risk while entering and exiting both the positions, hence exchange asks for more margin. Also, liquidity drop in one of the contracts can also cause trouble.

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