1. What is Zerodha Trading Margin?

Zerodha trading margin consists of two components: SPAN margin and Exposure margin. SPAN (Standard Portfolio Analysis of Risk) is calculated based on the risk of the position, while Exposure margin is an additional cushion to cover potential losses.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( SPAN \) — Standard Portfolio Analysis of Risk (INR)
• \( Exposure \) — Additional margin requirement (INR)

Explanation: The total margin required for intraday trading is the sum of these two components.

3. Importance of Margin Calculation

Details: Proper margin calculation helps traders understand their position sizing and maintain sufficient funds in their trading account to avoid margin calls.

4. Using the Calculator

Tips: Enter SPAN and Exposure values in INR. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is SPAN margin?
A: SPAN margin is a risk-based margining system that calculates worst-case loss scenarios for a portfolio.

Q2: What is Exposure margin?
A: Exposure margin is an additional margin over SPAN to cover potential market movements beyond normal expected ranges.

Q3: How often are margins updated?
A: SPAN margins are typically updated daily based on market volatility.

Q4: Are margins different for different segments?
A: Yes, equity, F&O, and currency segments have different margin requirements.

Q5: Can I get margin benefits for hedged positions?
A: Yes, certain hedged positions qualify for margin offsets in the SPAN system.