Spread order margin difference on margin calculator and actual trade


Today I tried to test a strategy using spread order to know how much margin it will be required.

However when I actually placed below spread order of 3L my order get rejected saying margin required

Rs.76267.95 whereas when I added these three legs under Zerodha margin calculator it shows me difference with Total margin as - Rs 42017 with margin benefit Rs. 45050. This is bit confusing can somebody clear about this.

3L Spread order -

NIfty APR CE 7400 Sell 1 lot

Nifty MAR Future buy 1 lot

Nifty MAR PE 7000 Buy 2 lots.

Your quick response is really appreciated.


Varesh, the margin showed on the SPAN calculator is after taking all the 3 positions. While entering the positions individually you will need the entire margin. Only once all the 3 positions are taken, do you get the margin benefit.

If you are short of margins, one of the things that could be done is take all the 3 positions using MIS (intraday type, which gives more leverage) and then convert into NRML.

1 Like

Thanks Nitin for the quick response on this.
So What I understood is if I take all these trades as MIS then e.g. Margin will blocked as 45050 rather than NRML margin of around 76000. In this case if I covert the position from MIS to NRML then still I dont need to add any more margin amount on top of 45050 to keep it around 76000 and can continue positions as NRML.
Let me know if my understanding is correct. I will try to apply this on trade to see.

Yep u r correct

Thank you so much Nitin.