Margin Calculator

The span margin calculator helps traders compute the margin (capital) required for initiating a trade in the NSE equity derivatives/commodity derivatives and currency derivatives segments before actually taking the trade.

The objective of span is to identify overall risk in a portfolio of futures and options contracts for each member.

In standard pricing models, three factors most directly affect the value of an option at a given point in time:

1. Underlying market price
2. Volatility (variability) of underlying instrument
3. Time to expiration

As these factors change, so too will the value of futures and options maintained within the portfolio. Span constructs scenarios of probable changes in underlying prices and volatilities in order to identify the largest loss a portfolio might suffer from one day to the next. It then
sets the margin(capital) requirement at a level sufficient to cover this one-day loss.

You can use the link to see F&O calculation – https://upstox.com/calculator/span-calculator/
All you have to do is select the exchange, segment, ticker, whether you want to buy or sell and quantity. After you fill in the details and click on add you will see the required margin (capital) for initiating the trade.

In equity the margins are called leverage. You are allowed to buy stocks by paying a marginal amount of the actual value. On Upstox, from 20th September 2021 onwards, you can now place intraday orders with up to 5x* leverage on all NSE 500 stocks!

What’s changed? Earlier we offered up to 5x leverage only on equity stocks listed under the F&O segment, but now you can avail up to 5x leverage to place intraday orders on all NSE 500 stocks.

*Please note: Leverages are subject to change without prior notice at Upstox’s discretion.

Upfront margins means depositing initial margins upfront on the trading day if you wish to trade in any of the registered segment/s.

The following shall be continued to be considered as upfront margin:

1. Funds available in the trading ledger with Upstox
2. Shares pledged* in favour of Upstox as collateral for margin purposes (only for POA clients)

*A change is this system shall become applicable in the near future. Clients shall be
appropriately informed about such change in advance.

The exposure margin is the margin blocked over and above the SPAN to cushion for any MTM losses. Both the SPAN and exposure margins are specified by the exchange. So at the time of initiating a futures trade, the client has to adhere to the initial margin requirement. The entire initial margin (SPAN + Exposure) is blocked by the exchange.

Value at risk (VaR) margin is a measure of risk. It is used to estimate the probability of loss of value of a share or a portfolio, based on the statistical analysis of historical price trends and volatilities. To arrive at VaR margin, three important parameters are considered.

1. Confidence level
2. Time horizon
3. Estimate of loss

VaR margin is published by the exchanges multiple times during the day, based on
the movement in price of a stock.

The extreme loss margin aims at covering the losses that could occur outside the coverage of VaR margins.

A ticker is a symbol, a unique combination of letters and numbers that represent a particular stock. Fox example, ticker for Reliance is RIL

The net option premium is the total amount a trader will pay for selling one or more options and at the same time purchasing others. The combination can include any number of puts and calls and their respective position in each.