SPAN (Standard Portfolio Analysis of Risk) is a risk-based margin calculation by exchanges. It simulates 16 market scenarios to determine the maximum one-day loss a portfolio can experience, setting margin accordingly.

What is exposure margin?

Exposure margin is additional margin (2-5% of contract value) charged beyond SPAN to cover extreme risks not captured by standard scenarios. Total margin = SPAN + Exposure.

How often do margin requirements change?

SPAN margins are updated 5-6 times daily based on real-time market movement and volatility. Exposure margins change less frequently. Higher volatility increases margin requirements.

What happens if margin falls below the requirement?

You receive a margin call requiring immediate fund deposit. If not met, the broker forcibly closes your positions (auto square-off) at market price to limit further losses. SEBI penalty of 0.5% per day applies on shortfall.

Is intraday margin different from delivery?

Yes. Equity delivery requires 100% payment. Intraday (MIS) requires only 20% margin (5x leverage) but positions must be closed before 3:15 PM. F&O intraday may get reduced margin compared to overnight positions.

Can brokers charge different margins?

Yes. Brokers can charge higher margins than the exchange minimum but never lower. Some brokers add 10-20% buffer above exchange margin for risk management. Discount brokers typically charge exchange minimums.

Why does selling options require more margin than buying?

Option buyers have limited risk (premium paid) so they only pay the premium. Option sellers have theoretically unlimited risk, so they must deposit margin similar to futures traders based on the underlying contract value.

What is the difference between initial and maintenance margin?

Initial margin is required to open a position. Maintenance margin (typically 75-80% of initial) is the minimum balance to keep the position open. Falling below maintenance triggers a margin call.

How does leverage work in margin trading?

Leverage means controlling a larger position with less capital. With 5x leverage and Rs 1 lakh, you control Rs 5 lakh worth of securities. Gains and losses are both amplified proportionally.

What are SEBI peak margin rules?

Since September 2021, SEBI requires brokers to collect minimum margin throughout the trading day (not just end-of-day). Margin snapshots are taken 4 times daily. Shortfall attracts 0.5% daily penalty.

How is margin for Nifty futures calculated?

Nifty futures margin = SPAN margin (typically 9-12%) + Exposure margin (2-3%) of contract value. For Nifty at 24000 with lot size 25, contract value is Rs 6 lakh. At 12% total margin, you need approximately Rs 72,000.

Can I use stocks as collateral for margin?

Yes. Through the pledge mechanism, you can use approved stocks and mutual funds as collateral. A haircut (10-50% depending on stock liquidity) is applied. For example, Rs 1 lakh of Reliance shares with 12.5% haircut provides Rs 87,500 collateral value.

Why did my margin requirement suddenly increase?

Margin increases during high volatility (earnings, events, market crashes), near expiry (especially for options), or when exchange revises SPAN risk parameters. Budget day and election results often see 2-3x margin spikes.

Equity Margin Calculator

Segment

Instrument Type

Trade Type

Quantity

Price (₹)

Expiry Date

Contract Details

Contract Value: ₹0

Lot Size: 0

Tick Size: ₹0

Days to Expiry: 0

Margin Requirements

SPAN Margin: ₹0

Exposure Margin: ₹0

Total Margin: ₹0

Margin %: 0%

Leverage & Risk Analysis

Leverage Ratio: 0x

SPAN % of Total: 0%

Exposure % of Total: 0%

Max Loss Scenario: ₹0

Extreme Loss Scenario: ₹0

Margin Call Level: ₹0

Margin Breakdown

Leverage Analysis

About Margin Calculator

A margin calculator helps you understand how much money you need to trade in futures and options. It calculates:

SPAN Margin: Risk-based margin calculated by exchanges
Exposure Margin: Additional safety margin
Total Margin: Combined SPAN + Exposure margin
Leverage: Trading power provided by margin

Margins are dynamic and change based on market conditions and volatility.

How It Works

SPAN Margin:

Calculated based on portfolio risk using Standard Portfolio Analysis of Risk methodology.

Exposure Margin:

Additional margin to cover risks not captured by SPAN, typically 1-5% of contract value.

Total Margin:

SPAN Margin + Exposure Margin = Total margin required to trade.

Trading Tips

✓ Higher volatility = Higher margin requirements
✓ Selling options requires more margin than buying
✓ Futures generally need higher margins than options
✓ Keep extra margin buffer for adverse movements
✓ Monitor margin utilization regularly

Frequently Asked Questions

SPAN (Standard Portfolio Analysis of Risk) is a risk-based margin calculation system used by exchanges to determine the maximum potential loss that a portfolio can experience. It's calculated using sophisticated algorithms that consider various market scenarios and price movements.

Exposure margin is an additional margin charged over and above the SPAN margin to cover risks that are not captured by the SPAN calculation. It's typically a percentage of the contract value and acts as a safety buffer against extreme market movements.

Margin requirements are dynamic and can change daily based on market volatility, price movements, and risk assessment by exchanges. Higher volatility periods typically result in increased margin requirements to manage risk effectively.

Different segments (NSE F&O, MCX, NCDEX) have varying margin requirements due to differences in underlying asset volatility, liquidity, contract specifications, and regulatory requirements. Commodity markets typically have different risk profiles compared to equity derivatives.

If you fail to maintain adequate margins, your broker may issue a margin call, requiring you to deposit additional funds. If margins are not maintained, your positions may be squared off automatically by the broker to limit risk exposure, potentially resulting in losses.

What Is an Equity Margin Calculator?

An equity margin calculator estimates how much capital you need to open and maintain a position in the stock market. When you trade with margin, you're essentially using borrowed funds from your broker — the margin is the collateral (deposit) you must provide. This calculator computes the SPAN margin, exposure margin, and total margin for equity, futures, and options trades on Indian exchanges (NSE, BSE, MCX).

Margin requirements are not fixed — they change daily based on exchange risk assessment files, market volatility, and SEBI regulations. Our calculator uses standard margin percentages to give you a reliable estimate, but actual requirements from your broker may differ slightly based on their risk policies and real-time exchange SPAN files.

Last updated: July 2025 | Data source: Standard NSE/BSE margin norms per SEBI circular | Disclaimer: This provides estimates only. Actual broker margin requirements change with market volatility and may include additional broker-specific buffers.

SPAN Margin vs Exposure Margin Explained

Aspect	SPAN Margin	Exposure Margin
Full form	Standard Portfolio Analysis of Risk	Additional risk buffer
Purpose	Covers worst-case one-day loss based on risk scenarios	Covers risks not captured by SPAN (extreme events)
Calculated by	Exchange clearing corporation (NSE/BSE)	Exchange (fixed % or formula-based)
How it works	Simulates 16 market scenarios (price up/down × volatility up/down)	Flat percentage of contract value
Typical range	5–20% of contract value	2–5% of contract value
Changes	Updated 5–6 times daily based on market movement	Changes less frequently
Refundable?	Yes, released when position is closed	Yes, released when position is closed

Total Margin = SPAN Margin + Exposure Margin
For example: If SPAN is 12% and Exposure is 3%, total margin = 15% of contract value. On a ₹5,00,000 contract, you need ₹75,000.

Initial Margin vs Maintenance Margin

Initial Margin

The amount required to open a new position. You must have this much free cash or collateral in your account before placing the order. If insufficient, the order is rejected. This is the SPAN + Exposure margin combined.

Maintenance Margin

The minimum balance you must maintain while the position is open. If losses erode your margin below this threshold (typically 75-80% of initial margin), you receive a margin call. Failure to add funds results in auto-square-off by the broker.

Margin Call Example: You have ₹1,00,000 margin for a futures position. If losses reduce your account to below ₹75,000 (maintenance level), your broker will demand you deposit more funds or forcibly close your position — often at the worst possible price.

Intraday vs Delivery Margin

Feature	Intraday (MIS)	Delivery (CNC)
Holding period	Must close same day	Hold indefinitely
Margin for equities	20% (5× leverage)	100% (no leverage)
Margin for F&O	50–100% of NRML margin	Full SPAN + Exposure
Risk level	Higher (forced square-off)	Lower (no time pressure)
Brokerage	Lower (flat fee per order)	Standard rate
Auto square-off	Yes, before market close (~3:15 PM)	No
Best for	Short-term traders, scalpers	Investors, swing traders

SEBI Rule (Sep 2021): Brokers can no longer provide excessive intraday leverage. Peak margin reporting ensures that at least 50% of the applicable margin is collected upfront for intraday trades. The era of 10×–20× intraday leverage is over.

Worked Examples

Trade	Stock/Index	Qty	Price	Contract Value	Margin %	Margin Required	Leverage
Equity Delivery	Reliance	100	₹2,500	₹2,50,000	100%	₹2,50,000	1×
Equity Intraday	Reliance	100	₹2,500	₹2,50,000	20%	₹50,000	5×
Nifty Futures	NIFTY (1 lot = 25)	25	₹24,000	₹6,00,000	12%	₹72,000	8.3×
Bank Nifty Futures	BANKNIFTY (1 lot = 15)	15	₹52,000	₹7,80,000	15%	₹1,17,000	6.7×
Options Buying (CE)	Nifty 24000 CE	25	₹250	₹6,250	100%	₹6,250	1× (premium only)
Options Selling (PE)	Nifty 23500 PE	25	₹150	₹6,00,000*	~15%	₹90,000	~6.7×
Commodity (Gold)	MCX Gold (1 lot = 100g)	1 lot	₹72,000/10g	₹7,20,000	5%	₹36,000	20×
Commodity (Crude)	MCX Crude (1 lot = 100 bbl)	1 lot	₹6,500/bbl	₹6,50,000	8%	₹52,000	12.5×

* For options selling, margin is calculated on the underlying contract value, not the premium received. This is why selling options requires significantly more capital than buying.

Risks of Margin Trading & Common Mistakes

Risks

Amplified losses: 5× leverage means a 2% adverse move = 10% loss on your capital
Margin calls: Sudden volatility can trigger margin calls requiring immediate fund deposit
Forced liquidation: Broker squares off positions at market price if margin isn't maintained
Gap risk: Overnight gaps can cause losses exceeding your margin (you owe the broker)
Interest cost: Margin funding may carry interest charges that erode profits

Common Mistakes

Over-leveraging: Using maximum available leverage without a stop-loss
Ignoring margin changes: Not accounting for margin increase during volatility
No buffer capital: Keeping exactly the required margin with no cushion
Holding losing positions: Hoping for recovery while margin erodes
Selling naked options: Unlimited risk with high margin that can spike overnight
Not understanding SEBI peak margin rules: Penalty for breaching intraday margin

SEBI Margin Regulations (2021–2025)

Peak Margin Reporting (Sep 2021): Brokers must collect minimum margin at all times during the day, not just end-of-day. Snapshots taken 4 times daily. Shortfall attracts penalty.
Upfront Margin Collection: Full SPAN + Exposure must be collected before order execution for F&O trades. No more "trade first, pay later."
Pledge Mechanism: Stocks used as collateral must be pledged (not transferred) to the broker. This protects client securities in case of broker default.
Intraday Leverage Reduction: Maximum leverage for equity intraday is now 5× (20% margin). Earlier, some brokers offered 20×–40× leverage.
Penalty for Margin Shortfall: 0.5% per day on shortfall amount (1% if repeated). Clients bear this cost, not brokers.