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.


#7

This happened today to me with yesbank, even though my trades are profit, i was short margin of -42000

and according to one of zerodha’s customer support executive, if I have margin shortfall, then my trades are in loss :zipper_mouth_face:


#8


#9

While your positions weren’t in a loss, the margin shortfall was because the SPAN requirement for Yes Bank went up during the day due to increased volatility. This is common if the scrip rallies like Yes Bank did yesterday.