About the SPAN Exposure Margin Calculator
What is the SPAN Exposure Margin Calculator?
This SPAN margin calculator adds the SPAN and exposure (extreme loss) margins on a contract. It includes the additional 2% extreme loss margin SEBI introduced for short index options on expiry day in November 2024.
It also shows the effective leverage and the price move that would wipe out the margin.
How to use the SPAN Exposure Margin Calculator
- Contract Value (₹) (sample: 18,75,000)
- SPAN (%) (sample: 9)
- Exposure / Extreme Loss Margin (%) (sample: 2)
- Short Index Option on Expiry Day? (sample: No)
- Press Calculate SPAN + Exposure (results also refresh as you type). The result card shows the Total Margin, along with SPAN margin, Exposure margin (incl. any expiry-day add-on), Margin as % of contract and Effective leverage.
Formula used
Total margin = Contract value × (SPAN % + ELM % + expiry-day add-on)
- Leverage = contract value ÷ total margin
SEBI studies found that about 9 in 10 individual F&O traders lose money. Trade only with money you can afford to lose.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Contract Value (₹) | 18,75,000 |
| SPAN (%) | 9 |
| Exposure / Extreme Loss Margin (%) | 2 |
| Short Index Option on Expiry Day? | No |
| Result | Value |
|---|---|
| Total Margin | ₹2,06,250 |
| SPAN margin | ₹1,68,750 |
| Exposure margin (incl. any expiry-day add-on) | ₹37,500 |
| Margin as % of contract | 11% |
| Effective leverage | 9.09× |
| Move that wipes out the margin | 11% |
Tips for using the SPAN Exposure Margin Calculator
- Margins are recalculated several times a day – keep a buffer.
- A margin shortfall attracts penalties from your broker.