how is the margin required calculated? Few days back it was 42k now it’s 45k… What determines the change…? Formula to calculate will help
SPAN is a proprietory software which helps in determining the risk for each futures and options contractfor a particular commodity by scanning over sixteen different price and volatility scenarios.
The SPAN system, through its algorithms, sets the margin of each position to its calculated worst possible one-day move.
The formula is quite complex, NSE gives out a CD called PC-SPAN which has the computation mechanism. We have integrated the same through API’s to our SPAN calculator: https://zerodha.com/margin-calculator/SPAN/
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