Arihant Plus hosts an online margin calculator informing you of the required deposit in your trading account to trade different stock types. The margin calculator major utility comes up when clients use for future and options securities hence we are providing it for them.

A VaR Margin is a margin intended to cover the largest loss (in %) that may be faced by an investor for his / her shares (both purchases and sales) on a single day. It is usually measured with a 99% confidence level.

SPAN is a Standard Portfolio Analysis of Risk is the minimum margin requirement needed to transact a futures or options trade in the market. In options trading, SPAN margin functions as collateral to cover against possible adverse price movements. Span is calculated from VaR and is derived by the exchange.

Exposure is that part of the margin that you have to pay additional to Span. It is collected to protect against a broker’s liability that can also potentially arise due to uncertainty in the market.

How to access Margin calculator?

1.Login to your application

2. On the bottom right corner click on My accounts

3. Click on Margin Calculator

4. Below Screens will appear , input the scrip name, select call or put, click on submit.

5. The Span , exposure and total required margin will be visible

How It Works:

● Utilises real-time exchange data.

● Calculates dynamic margins as instrument prices fluctuate.

● The margin is calculated using Value At Risk (VAR) + Extreme Loss Margin (ELM) for stocks and ETFs.

● The margin is calculated using Standard Portfolio Analysis of Risk (SPAN) + Exposure Margin for futures and options.

Benefits:

● It helps avoid overtrading by calculating the necessary margin.

● Ensures sufficient funds to cover losses if the market moves adversely.

Optimise your trading strategy and stay financially secure with Arihant Plus' Margin Calculator!