Why is there is a difference in the margin blocked on Kite different from what I see on the margin calculator?


#1

I see 2.39L required to take 3 lots of DLF Futures, while the margin blocked for the position is about 2.51L



@Bhuvanesh @MohammedFaisal @siva can you help with this?


#3

@Umar, SPAN and exposure margins on the margin calculator are updated on a beginning of day basis while Kite updates SPAN margins 5 times during the day.

The exchange releases 6 SPAN files during the day. One before the market opens, 4 files during trading hours and one after market close.

SPAN margins change during the day based on the following factors:

  1. Price change(% change during the day)
  2. Change in volatility(increase in volatility of the contract increase the margin required)
  3. Time to expiry.
    While point 3 has very little effect on the SPAN margins, price change and volatility can change the margin requirement drastically if there has been a significant change in price during the day.

#5

At what approx times of the day during market hours (4 times) are the span updated? @MohammedFaisal


#6

The exchange releases the SPAN margin files at around 11:00, 12:30, 14:00 and 15:30 during the day. We update the same within 30 minutes of receiving the files.