Which Margin is Required in Which Segment?

Equity Cash Segment

1. Intraday (MIS)

In intraday equity trading, margin is calculated based on:

• VaR (Value at Risk) Margin (Minimum 20%)
• Extreme Loss Margin (ELM)

The total margin required is:

Total Margin = VaR + ELM

This typically ranges between 20% to 35% of the trade value, depending on the stock’s volatility and exchange risk classification.

Example: If you take an intraday position worth ₹1,00,000, the required margin may be approximately ₹20,000 (assuming 20%).

2. Delivery (CNC)

For delivery-based equity trades:

• 100% of the trade value is required upfront.
• No leverage is permitted as per regulatory norms.

Example: If you purchase shares worth ₹1,00,000 for delivery, you must have the full ₹1,00,000 available in your trading account.

No leverage is permitted in delivery trades as per regulatory norms.

3. Equity Derivatives (Futures & Options)

Futures (Index & Stock Futures)

To take a futures position, the total margin required is:

Total Initial Margin = SPAN + Exposure

Typical margin requirement:

• Index Futures: Approx. 10% to 15% of contract value
• Stock Futures: Approx. 15% to 25% of contract value

(Actual margin depends on volatility and exchange risk parameters.)

Example: If the contract value of an Index Future is ₹10,00,000, required margin may be approximately ₹1,20,000 (assuming 12%).

You can calculate the exact margin for NSE/BSE Futures using our official Margin Calculator:
👉 https://www.shareindia.com/calculators/margin-calculator

Options

For Option Buyers:

• Only the premium amount is required.
• No SPAN or Exposure margin is applicable for buying options.

For Option Sellers (Writers):

For selling options:

• SPAN Margin
• Exposure Margin

Margin requirement generally ranges between:

• 15% to 30% of contract value, depending on risk and volatility.

Since option selling carries higher risk exposure, margin requirements are significantly higher than option buying.

To estimate exact margin for option writing, please use our Futures & Options Margin Calculator:
👉 https://www.shareindia.com/calculators/margin-calculator

4. Commodity Derivatives (MCX / Commodity Exchange)

Commodity Futures – Before Tender Period

The following margins are applicable:

• SPAN Margin
• Exposure Margin

Commodity Futures – During Tender Period

If a position is carried into the tender period:

• SPAN Margin
• Exposure Margin
• Tender Margin
• Delivery Margin

Margin requirements increase significantly during the tender period to ensure proper delivery obligations.

Clients are advised to square off positions before the tender period if they do not intend to participate in physical delivery.