Knowledge Base

SPAN Margin

Total Margin = SPAN + Exposure Margin

SPAN (Standard Portfolio ANalysis) calculates minimum margin based on portfolio risk.

Multi-leg strategies get margin benefit — hedged positions require less margin.

Calendar spreads get more margin benefit than same-expiry spreads.

Exposure margin is an additional buffer — typically 3-5% of contract value.

Check margin requirements before trading — insufficient margin = position rejection or square-off.

Pro Tip

Use hedged strategies (spreads) to reduce margin requirements by 50-70% compared to naked positions.

SPAN Margin - Complete Guide

Everything you need to know about SPAN Margin and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Total Margin = SPAN + Exposure Margin

Key Concepts & Rules

SPAN (Standard Portfolio ANalysis) calculates minimum margin based on portfolio risk.

Multi-leg strategies get margin benefit — hedged positions require less margin.

Calendar spreads get more margin benefit than same-expiry spreads.

Exposure margin is an additional buffer — typically 3-5% of contract value.

Check margin requirements before trading — insufficient margin = position rejection or square-off.

Expert Strategy

Use hedged strategies (spreads) to reduce margin requirements by 50-70% compared to naked positions.

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