Comment on Zerodha F&O margin Calculator

Adithya commented on 31 Aug 2016, 02:31 PM

Thanks Nithin, I did read that before posting the original question. I understand that there is execution risk and that is why the margin benefit may not be as high as one would anticipate.

But do you know the exact rules whereby we can calculate the margin benefit for different portfolios? The SPAN rules (https://www.nseindia.com/products/content/derivatives/equities/nsccl_span.htm) do not talk about execution risk, and if you blindly follow those rules, you get the same SPAN margin for a short call position as a short straddle position. I was trying to build those rules into a system for picking option positions, and hence the question.

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