uTrade AlgosELM, or Extreme Loss Margin, is a type of margin collected in the derivatives market (Futures & Options) to safeguard against unforeseen market volatility that may not be covered by SPAN or Exposure margins alone.
Why is ELM important?
ELM acts as an extra risk buffer and helps ensure market stability. It protects trades from sudden and extreme losses due to:
- Sharp, unexpected price movements
- Market-wide events that can’t be predicted through usual volatility models
- Situations where SPAN and exposure margins may not be enough
How to Check ELM?
You don’t need to calculate it manually—tools like the Share India Margin Calculator automatically include ELM in your margin breakdown. Here’s how:
Step 1: Visit the Share India Margin Calculator.
Step 2: Fill in the trade details like exchange, instrument type, symbol, lots, etc and click ‘Add.’
Step 3: Find ELM in the margin breakdown details.
Knowing your ELM, along with SPAN and Exposure margin, ensures you’re fully aware of the capital required to maintain your trades securely.
For any assistance, you can contact the Share India support team via email at support@shareindia.com or by phone at 1800 203 0303.