BAJAJ BROKING

Notification
No new Notification messages
Retaggio Industries IPO is Open!
Apply for the Retaggio Industries IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

F&O Margin Calculator

Select exchange
  • NSE
  • BSE
Select product
  • Futures
  • Options
Call
  • Call
  • Put
(Lot size)

Combined margin requirements

Span

0

Exposure Margin

0

Total Margin

0

Margin Benefit

0

Exchange Contract Product Strike Quantity Initial margin Exposure Total
Grand Total

₹ 0

What is a Margin Calculator? 

A Margin Calculator is a vital online tool for traders, offering a precise calculation of margins needed for equity and F&O trades. This handy resource aids in determining the margin deposit required to secure leverage from your broker, a feature commonly available on brokers' websites. 
 

Using a Margin Calculator before initiating trades allows for more informed and strategic planning. The advantages are manifold, including immediate trade viability assessment and a comprehensive view of cumulative margins for all trades. 

 

With the Bajaj Broking F&O Margin Calculator, you gain insights into crucial details like initial margin, span, exposure, and any extra leverage offered. These are particularly crucial for strategies like options writing, shorting, and various F&O approaches. Moreover, the calculator provides margin benefits for various segments, including equity delivery, intraday, and commodities trading.

Different Types of Margins

  • 1

    SPAN Margin

    • The minimum amount required to enter an F&O trade, based on price volatility and market risk.
    • It is determined by the exchange using a standardized portfolio analysis of risk (SPAN) model.
  • 2

    Exposure Margin

    • Charged in addition to span margin to cover market risks.
    • Calculated as a percentage of the total contract value.
  • 3

    Initial Margin

    • The total amount (span + exposure margin) required to initiate an F&O position.
    • Must be maintained in the trading account before executing the order.
  • 4

    Maintenance Margin

    • The minimum balance required to keep the trade open.
    • If the account falls below this level, a margin call is issued.
  • 5

    Premium Margin

    • Applicable only to option buyers.
    • Equals the premium paid while purchasing an option contract.
  • 6

    Mark-to-Market (MTM) Margin

    • Daily settlement margin calculated based on the closing price of the contract.
    • Adjustments are made for unrealized profits or losses.

     

    Understanding these margin types is crucial for effective risk management and ensuring compliance with brokerage and exchange regulations.

How to Use a Margin Calculator?

Using an F&O margin calculator simplifies the process of estimating the capital required for trading derivatives. Follow these steps to calculate your margin requirements accurately:

 

Step 1: Select the Trading Segment

  • Choose between Futures or Options trading.
  • Select the relevant asset class, such as equity, commodity, or currency derivatives.

 

Step 2: Enter the Contract Details

  • Input the stock or index name for which the trade is being executed.
  • Select the expiry date for the derivative contract.

 

Step 3: Specify Trade Type

  • Choose whether you are buying or selling a futures or options contract.
  • Mention if the position is intraday or carry forward.

 

Step 4: Input Lot Size & Price

  • Enter the lot size of the contract you want to trade.
  • Input the strike price (for options) or trade price (for futures).

 

Step 5: Check Margin Breakdown

  • The calculator will display:
    • Span Margin: Minimum margin required based on market risk.
    • Exposure Margin: Additional buffer margin.
    • Total Initial Margin: The sum of span and exposure margins.

 

 

  • Modify trade parameters to compare different margin requirements.
  • Ensure sufficient funds are available in the trading account before placing an order.

 

Using a margin calculator allows traders to manage their capital effectively and avoid margin shortfalls, ensuring seamless execution of F&O trades.

Bajaj Broking Info

Bajaj Broking: Empowering India with Financial Freedom

Elevate your investing and trading with Bajaj Broking. From novices to HNIs, our user-friendly platform, expert guidance, and diverse products simplify your stock market journey. Join us to make investing easy and accessible for all Indians!

img

We have something for everyone

Portfolio Diversification Through Multiple Choices

Stocks

Secure and enhance your financial future today

investment-card-icon

IPOs

Your gateway to future financial opportunities

investment-card-icon

MTF

Explore Buy Now Pay Later and boost your capital by up to 4x  

investment-card-icon

US Stocks

Discover opportunities to invest in elite FAANG stocks

investment-card-icon

Frequently Asked Questions

What is the SPAN margin and how is it calculated?

Answer Field

SPAN is the short form of Standardised Portfolio Analysis of Risk. It’s an upfront margin collected by the broker before a derivative trade is initiated. SPAN margin calculation considers multiple scenarios to better understand the maximum loss amount a position can suffer in one trading day.

How does a margin calculator work?

Answer Field

The margin calculator makes use of a formula to determine the margin amount a person needs to deposit to cover the risk associated with a trade. The important factors which this calculator considers are an asset’s current market price, its volatility and the time left till its expiry.

How to Use Span Margin Calculator?

Answer Field

Enter information such as contract, quantity, and instrument type into a span margin calculator. It uses market volatility to determine margin requirements. Recognize risk because increased volatility can result in higher margin. Make wise trading decisions based on the results, making sure you have enough money to cover any losses. Update inputs frequently to ensure accurate computations

What is the margin requirement for cash market transactions?

Answer Field

There is no margin requirement for delivery trades in cash markets. But, the margin requirement is 20% of the total value of trade, when it comes to intraday trades in the segment.

What is the Value at Risk (VaR) margin?

Answer Field

Value at Risk margin indicates the probability of loss in the value of an asset. One can arrive at this figure through statistical analysis of an asset’s volatility and its historical price. Stock exchanges collect margin for 1 day for liquid securities and for 3 days for illiquid securities.

What is the extreme loss margin?

Answer Field

Extreme loss margin is a margin collected by stock brokers over and above the SPAN margin. The main aim behind collecting extreme loss margins is to offset the risks that may arise due to unpredictable market movements.

What are the other ways to use an F&O margin calculator?

Answer Field

You can use an F&O margin calculator to optimise your trade. Calculate the margin requirement for each trade and get a better understanding of the risks associated. You can identify potential hedges which may protect against unexpected market movements. Moreover, you can understand the appropriate position size depending on your risk tolerance.

What are some of the tips for using a margin calculator?

Answer Field

 Remember that margin requirements for F&O trading undergo frequent changes. So, it's important to keep monitoring them. Using different scenarios for analysing margin requirements is also important. You can use historical data for margin requirement analysis and track expiry dates regularly.

What information do I need to input into a margin calculator?

Answer Field

You need to input the exchange, segment, product, scrip, action (buy/sell), and quantity (lot size) into the margin calculator. This data helps the calculator estimate the margin required for your trade.

Can a margin calculator predict my potential profits and losses?

Answer Field

A margin calculator primarily estimates the margin required for a trade. It does not predict potential profits or losses but helps ensure sufficient funds are available for the chosen trade action.

Are there any limitations when using a margin calculator?

Answer Field

Yes, a margin calculator doesn’t account for market volatility, unforeseen fees, or slippage. It only provides margin requirements and may not reflect real-time market conditions or other factors impacting your trade.

How often should I use a margin calculator in my trading routine?

Answer Field

Use a margin calculator every time you plan a trade to ensure you have the required margin available. Regular use helps manage risk and ensure informed decision-making in your trading routine.

What are the benefits of a margin calculator?

Answer Field

A margin calculator helps estimate required margins, enabling better risk management. It allows you to plan trades effectively, ensuring sufficient funds while providing transparency on leverage and trading positions.

What are margins in equity?

Answer Field

Margins in equity refer to the amount of equity an investor holds in their brokerage account. Margin investing involves borrowing funds from a broker to buy securities through a margin account, distinct from a standard brokerage account. Tools like an F&O margin calculator can help assess margin requirements for derivative trades.

What is an exposure margin?

Answer Field

An exposure margin, also called the margin of exposure (MOE), assesses risk by comparing the no-observed-adverse-effect level of a substance to its estimated human intake. For financial instruments, it refers to risk margins imposed on open positions. An F&O calculator can calculate such margins for futures and options trading.

What is an upfront margin?

Answer Field

An upfront margin is the minimum amount of money required to initiate a trade. For equity trades, exchanges mandate collecting at least 20% of the trade value upfront from the client. This ensures compliance with risk management guidelines and can be calculated using tools like an F&O margin calculator.

What is net premium margin?

Answer Field

Net premium margin is the portion of an insurance premium allocated to pay future claims, excluding administrative costs. It’s derived by subtracting the expected present value of future premiums from the expected present value of policy benefits. While unrelated to trading, net premium margin complements risk management in finance.

No Result Found

Get the latest updates and insights on Demat account

Related Articles

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

9 lakh+ Users

icon-with-text

4.3+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4300+ Cr MTF Book

icon-with-text