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We have released a fully online SPAN calculator tool, the first of its kind in India. SPAN calculator is a unique tool designed to help you figure out margin requirements even before you take a trade. What is unique about this is that the calculator will show you the margin benefit for taking multiple positions at the same time. The exchange gives you a margin benefit when there are positions which are hedging others and we are amongst the first few brokers to offer a tool on a trading platform which tells you this before taking a trade.
Find following an explanation on how to use the tool:. Ensure that you are registered onto NEST PLUS. Ideally you should be automatically be registered on NEST PLUS 24 hours from when your account is active at Zerodha. If you are not registered, look at this blog on how to register. While logging into the platform, ensure that you have ticked on Launch Plus.
Check out the pic below:. You can also do this by following the steps on the picture below:. To start the SPAN Calculator, choose it from the drop down and then click start plugin as mentioned in the image below:. Find following an example of using the SPAN calculator. As we all know margin required to buy 1 lot of Nifty futures is around when Nifty is aroundwhat happens if you buy 1 lot of put along with buying Nifty futures? You buying put reduces the risk on the Nifty futures and hence the margin blocked should reduce.
Consider that Nifty futures presently is at and nifty put is at around Rs Margin for nifty futures: Rs 4,… Together the margin required should be 29, but since the position is hedged, the margin requirement should be?? Look at the illustration given below:.
Short StrangleAfter the above pic, you get the following window. In the net quantity, add 50 1 lot long and add if you are shorting.
In the above example, you are buying 1 lot futures and 1 lot puts, so add net qty as 50 in both the cases. See the pic below:. After adding the first contract, add the second contract that you wish to add, see pic below:. As you will see in the example, the margin required reduces by quite a bit because your position is hedged. Click on both positions and click get SPAN. See the actual margin required to take this trade:. Similarly you can see the margin requirements for trading commodity futures.
So the net quantity can be multiples of, for Gold 1, as 1kgSilver 30, as 30kgLead 5, as 5MTLead mini 1, as 1MTZinc 5, as 5MT so on. It is a unique tool and Zerodha Trader is amongst the first platforms in India which gives you this facility. What is the basic and main Difference between below Terms 1. Required Span Margin 2.
Required Exposer Margin 3. SPAN margin is the minimum required margin as suggested by NSE to hold a future position overnight. Exposure margin is the NSE suggested margin to keep over the SPAN margin to ensure that there is no short penalty. This is the most important thing to look at. But, can you please provide a risk and position size calculators for commodities.
Since the tick size varies, it becomes cumbersome to calculate them while trading. Hi, I am unable to setup span calculator. It is not showing span calculator pulg-in under nest auto plugins. After successful login in to nest plus message it is showing opt connections: You can reply to the post, instead of creating a new one, this way keeps all questions on 1 thread. I just got migrated back from ZT to NOW for the reason NSE NOW mobile is simple and effective than NEST mobile as I primarily trade on Mobile.
If it is margin for futures, it is available on the SPAN file on our backoffice http: If you intend to know margins for writing options and when you take multiple positions at a same time, it is not possible on NOW. I am using Zerodha trader -Web version.
I wanted to short Nifty Futures and simultaneously buy Call options. Based on the margins calculated by the SPAN caculator, I had sufficient margins to cover my trade. But when I tried entering the trade using Spread Order as well as individually, the system rejected my trade for want of sufficient margins.
The way out for now is to probably use MIS to enter the trade and then convert MIS into NRML once you have taken both the positions. Thanks, Thats a really good idea to Enter as MIS and convert to NRML.
In the SPAN Calculator we have 3 fields to enter the quantity, i. Can you please tell me what is the difference between them and in what scenarios do we use them?
I recently placed this order: The Span calculator had shown a margin requirement of about however even after i entered the trade completely after executing all the 4 orders the margin blocked was about Rs: Am i missing something here?
There is different margins blocked by the exchange for placing orders and for positions which are already taken. Net quantity box will show based on what is for holding a particular position. There could be small variance between what SPAN calculator shows and what is actually blocked, should not be this much, can you upload a screenshot here.
Also i am a bit confused — Could you please tell if the amount shown in the SPAN calculator includes the amount i have to pay for my long positions or should i add the price of my long positions to what is shown in the SPAN calculator? The thing is that in real market the premium that you received on your writing position will be credited to you only the next day, so that much extra will be blocked in your real market scenario.
In SPAN calculator, it calculates considering the fact that premium is going to be credited and hence will show lesser margin.
So in your example, SPAN showsactual is But you need to use the product type MIS while trading intraday and this will be squared off at 3. SELL 1 lot a stock call option CE ABC strick price for the premium Rs.
May be the underlaying stock is trading 95 at that time.
How We Trade Straddle Option Strategy - Articles - SteadyOptions
As there is a risk involved if the stock price of ABC goes up beyond I buy-CNC- 1 lot the shares of ABC Now even if the option premium increases there is no problem as I my stock price increasing can offset that.
Now my questions are: I wanted to sell the stock option and buy the lot of shares in a single trade as: If my positions are not having enough margin requirement, do you immediately close them?
And how can I keep track of margin requirements daily and easily? You can use the Spread order for this, a 2L spread order. The issue with this though is that it has to be IOC immediate or cancelso if both the prices are not available it gets cancelled immediately.
Yes your losses are limited if you are short calls and long calls, but you would still need margins for the short waurika livestock market report as per exchange rules.
But the good thing is that once you take the second position, the margin drops significantly. The blog above is a tool which tells you how much margin benefit exactly you get. If you are trading nifty options, use for short options and 50 for long options, once added on the tool it will mention the exact margin benefit.
You said 2L spread order is having only IOC, but tool is showing DAY also. Do you mean even if I select DAY; still it will be IOC? What is the reason for this, is it stock exchange limitation?
And where can I check the margin requirements are met or not? Finviz forex charts asked if there is a way that it is executed only if both conditions are met.
So either you can use day and keep as market orders for both how much earnest money is needed legs or else use IOC and keep limit order. If you are particular about the price, you will have to use IOC and limit order option.
This link to monitor your positions: This link to monitor your cash and margin utilization. I am not clear about 2L spread. I am particular about price then do I need to use options trading software straddle strangle auto IOC with LIMIT order? Is it not possible to order 2L with LIMIT order and DAY? I am expecting that: DAY means my order both the legs not one will be tried to fulfill through out the day with the given limits satisfying.
Is that not possible? If you are particular about price, you have to put limit and day order. The problem with this is that there are chances that 1 leg gets executed and other might be pending. I guess, the only way you can do this is monitor manually and execute when you see both the prices that you are looking for. Will I get spread benifit. What is the required margin money for this transaction if keep both the positions till expiry of future or future premium becomes discount.
You get a benefit if you buy LT Aug futures and sell LT Sep futures. In the example you have given, what has to be done if you need some margin benefit is buy LT shares and then give these shares as collateral. You can use this margin for selling the futures.
I would like to buy 2 lots of futures and 3 lots of put as hedging. So span margin comes into calculation. Buy 2 lots bank nifty futures: Margin required is Rs.
In the second case, after buying both, will I be able to sell the put separately and hold futures? When you buy those 3 lots of puts, the risk of the futures reduces and hence the margin blocked will also employee stock options turbotax from 52k. Live stock market ticker for mac can hold this position for overnight as long as yo are holding the puts.
If you exit the puts then the margin requirement will automatically go up for the futures. Hi, I have a Option writing position: For 25th Sep, when I verified the required margin using SPAN-Calculator I get as following: However Correlated currency pairs forex ledger account has — SPAN Margin: If on the calculator you add the basics about trading stocks position you have as well and check the SPAN totally it will match.
I would need rupees for above scenario. This foreclosed homes for sale in stockbridge ga case of options which moves around fast might trigger very fast. This blog is really a great one. I have never been a fan of brokers who offers very low cost brokerage but after reading this blog, it seems like these people are masters in what they are doing. I am very much impressed.
So finally, I have given an application for opening account in Zerodha. BTW, options trading software straddle strangle auto there any tool available in nse website or any where else which shows the span margin without login to the brokerage account?
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We are launching our new website on Diwali and also launching our margin tool on browser. Hi zerodha team, I want to know If I want to write call option with SP RS 7 then how much margin required for trade on intraday as well as delevery. At the current market levels, the margin would be around 7. You can use the SPAN Calculator to know real time margin coke or pepsi stock. I have a detailed query: When I want to do 2 transactions: Buy NIFTYPut and sell NIFTYPut, as position is hedged, it requires very less margin of Rs.
But while actually placing these 2 orders, it is required to have total margin of Rs. How can I do above 2 transactions when I have Rs. When you write an option, you will see a premium receivable in the calculator.
This gets stock buy back clause only after you take free technical analysis software for indian stock market download position. All MIS positions get squared off by 3. I am a new user and have had a good experience so far. The Margin with us is also 25k, just like ICICI.
I have a trading account with zerodha and usually do intraday trading in equity segment. I have accessed the online SPAN calculator http: Could ypu please clarify on it and let me know how could I get to know the total margin requirement for any scrip if i wish to trade in the options segment.
When you trade options there are 2 ways, either times of india forex buy or go long options in which case there is no concept called margin.
You buy calls if you are bullish and buy puts if you are bearish, in both the cases you need the entire premium to buy. So if Nifty calls are trading at Rsyou need Rs in your account to buy. The other thing you can do with options is to short or write or sell options, margin is required only in this case as is the risk in this case like futures is unlimited.
So roboforex vps review you are adding sell option position on the SPAN calculator you can see the margin required. If I sell 1 lot 50Q NIFTY13DEC at PE Span calculator says that 22, will be my total margin. Assume when you shorted CE, the value was Rs Yes you need only for shorting this option. There is no premium credited to your trading account.
So if you shorted at 60 and at 3. Hi Nitin, Can you please let me know if there is a way of finding the zerodha brokerages while spread trading using NF? Margin required today is around 20k, you can calculate this yourself using the SPAN CalculatorYes if the premium goes up you will have to pay the MTM, and if it is decreased the margin blocked reduces.
When you short options, the entire premium is credited immediately to your account. Pragnesh, we have a blog for Cover ordersno you cannot place order with limit for cover orders. I am using ZT Nest Trader 3. The 4 options listed, i. Quick Login, Confirm Scrips Download, Clear and Download All Scrips and Launch Plus in Nest Trader Login popup window is not seen. Please help me as to how to see Span Calculator. Visit this link for SPAN. Hi Nithin, In Brokerage calculator on the website, the Stamp charges are not included.
A tool which lets you simulate a trading position and allows you to calculate the exact margin requirement even before taking the trade. Using the SPAN calculator lets you know the margin benefit for a hedged position, margins required to write options or other similar strategies. All this with a few clicks using this tool. So why all Indian brokers including Zerodha block margin on both legs when the risk is only on one leg. Brokers should block margin on one leg only, wherever margin is higher.
Actually who decides the margin? Is it broker or exchange? 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. Does Zerodha allow hedging in the same category? Whenever there are two trades in the opposite direction, they get squared off. They are not considered as separate orders. It creates 2 different positions. However if you do it on other product types like MIS, CNC, NRML, positions get squared off.
Sorry, by placing counter BO orders, your positions will indeed get squared off. Hi, My ID DS I want to trade in commodity future Positional. But when I trade in future positional, I will place order always with a trailing stop loss. So I will be in future position till expiry or trailing stoploss hit. Now querries as under: My order is like CO used for Positional trades. Bracket orders not allowed on commodity. You will have to manually place a stoploss and keep trailing manually.
No such feature, you can build your own strategy for this. In the month starting i had initiated a spread in Bharti Airtel. Buy Sep Futures and Buy Put and the margin blocked was approx. As per SPAN calculator the overall margin to be blocked is approx. But the blocked amount is approx. All my strategies are in the same asset only and loss is limited max of INR 10, irrespective of the market movement and SPAN is also showing INR 70K but in real scenario the blocked margin is more than double?
Kindly suggest and do the needful. If the exchange is deciding the margin then there is no use of SPAN Margin calculator. If the calculator shows INR 75K but the actual margin blocked was 1. I hope on daily basis the margins used to vary, if this is for new position means fine due to volatility variation but already opened position its very difficult. On what basis can i go for new strategy execution, kindly suggest.
Ah sorry, I got your question wrong. Bank Nifty weekly options are not added to your Span Margin Calculator. When are you going to add this to your list? Open an Account Updates-Latest at Zerodha Pi Beta Updates Why Zerodha? Zerodha Associate Program Zerodha in News — Headlines Zerodha in News — Quotes. SPAN Calculator 86 comments. TrendingZerodha Trader- Software Version. Traders, SPAN calculator is a unique tool designed to help you figure out margin requirements even before you take a trade.
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