*The calculations are estimates, excluding transaction charges."
| Combined Margin Requirements | |
|---|---|
| Span Margin | ₹ 0 |
| Exposure Margin | ₹ 0 |
| Margin Benefit | ₹ 0 |
| Total | ₹ 0 |
| Exchange | Symbol (contract) | Product | Strike | Trade Type | QTY | Initial Margin | Exposure | Total | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Add position to get margin details | |||||||||||
A Margin Calculator is an online tool designed to help traders determine the amount of margin required to execute a trade in the stock market. It provides a clear estimate of the capital a trader needs to maintain in their account to enter and hold positions across different segments like Equity, Futures & Options (F&O), Commodities, and Currencies.
The calculator takes into account various factors such as the type of trade, quantity, and current exchange rules to display the exact margin requirement. It also shows the leverage offered and the total exposure of the trade. This allows traders to assess their affordability, manage their funds better, and avoid margin shortfalls or penalties.
By using a margin calculator, traders can plan their trades more effectively, stay within risk limits, and make informed decisions without the uncertainty of manual calculations. It is especially useful in a market environment where margin rules can change frequently, ensuring that traders always operate with updated and accurate information.
It is to be noted that a Margin Calculator is not a funding tool, but a planning tool. It doesn’t provide you with borrowed funds (like MTF does), but helps you estimate how much margin you need to execute your trades smoothly and safely. For every active trader—whether in equity or derivatives—it’s one of the most important tools to use before placing a trade.
Using a margin calculator offers several key advantages that help traders operate more efficiently and safely in the stock market:
Understand how much capital is needed for different trades
A margin calculator provides a clear estimate of the funds required to execute a trade. This helps traders understand whether they have enough balance to take a position and avoid unnecessary rejections or delays.
Compare margin requirements across various stocks or strategies
Different stocks and trading strategies can have very different margin requirements. The calculator allows traders to compare these side by side, helping them decide which opportunities align best with their capital and risk appetite.
Avoid over-leveraging or sudden margin calls
Without knowing the exact margin requirement, traders might unknowingly over-leverage, taking on more risk than they can manage. A margin calculator helps prevent this by showing how much exposure you're taking and whether your current funds are sufficient to support it
Be better prepared before placing trades
Knowing the margin in advance helps traders prepare mentally and financially. It ensures that the necessary funds are available and avoids any surprises after the order is placed.
It removes guesswork and gives a clear picture of your capital needs.
Understanding the following terms will help you navigate margin-based trading with more confidence and clarity:
Margin is the minimum amount of money you must maintain in your trading account to enter or hold a position. It acts as a security deposit that ensures you can cover potential losses on a trade. Margin requirements vary depending on the type of trade (intraday, delivery, F&O) and the broker’s policies. It is not a fee, but rather the portion of funds that are blocked during the trade.
SPAN (Standard Portfolio Analysis of Risk) Margin is a risk-based margin system used primarily in Futures & Options (F&O) trading. It is calculated using a sophisticated model developed by exchanges like NSE and BSE, which considers historical volatility, price changes, and worst-case scenarios. The SPAN system ensures that you maintain enough funds to withstand market fluctuations. This margin is reviewed and updated daily by the exchange.
Exposure Margin is an extra cushion collected by brokers and exchanges in addition to SPAN Margin. It is added to protect against unexpected market movements, especially in highly volatile conditions. While SPAN margin is calculated based on risk modeling, exposure margin is a fixed percentage or flat value, providing an extra layer of safety to the system. Both SPAN and Exposure margins together make up the total margin required to place an F&O trade.
Leverage refers to the ability to trade a larger position with a smaller amount of your own capital. In margin trading, brokers allow you to take trades worth more than your actual investment by funding the difference. For example, if you have ₹20,000 and your broker offers 5x leverage, you can trade positions worth ₹1,00,000. While leverage can amplify returns, it also increases risk, which is why understanding margin requirements is crucial before using it.
There are different types of margin calculators based on the trading segment:
This calculator is used for trades in individual stocks. It helps traders know how much margin is needed for intraday trades (MIS) or delivery trades (CNC). It shows the margin required and leverage available.
Used for Futures & Options trading in index or stock derivatives, such as NIFTY Futures, Bank Nifty Options, or TCS Futures. It calculates the total margin required, including SPAN margin and Exposure margin.
Used for trading in commodities like Gold, Crude Oil, and Silver on MCX. It estimates the margin required for each contract.
Designed for trades involving currency pairs like USDINR or EURINR in the derivatives segment.
Using Jainam Broking’s Margin Calculator is quick and straightforward. It helps you check the margin requirements across different trading segments so you can plan your trades more efficiently. Here’s a step-by-step guide that helps you choose a capital-efficient trade setup:
A margin calculator is an online tool that helps traders estimate the amount of margin required to place a trade. It provides a picture of how much capital is needed, preventing trade rejection or margin shortfalls. It’s useful for planning trades efficiently and managing risk.
Yes, it shows the total margin required based on the trade size, segment, and exchange rules. This includes SPAN Margin, Exposure Margin, and, in the case of equities, applicable leverage. It reflects the upfront capital you need to maintain in your trading account.
Jainam Broking’s calculator supports all major segments:
SPAN Margin is the base margin required based on historical volatility and worst-case risk, whereas Exposure Margin is an additional buffer added by exchanges to cover unpredictable market movements. Together, they form the total margin needed for F&O trades.
Yes, the Equity Margin Calculator within Jainam’s tool allows you to calculate the margin required for intraday trades, where leverage is typically higher. It helps you know how much capital is blocked for your intraday positions.
No. Margin is the minimum amount required to enter a position. Your total trade value may be much higher, especially when leverage is applied. The calculator helps you understand how much of your own money is required versus the broker-funded portion.
Margin requirements can change continuously based on market volatility, exchange updates, or changes in risk management policies. That’s why using a margin calculator before placing every trade is important—it gives you the most up-to-date margin information.
Yes, in the Equity segment, the calculator shows margin for both intraday (MIS) and delivery (CNC) trades. While delivery trades usually require full payment, brokers may allow leverage for intraday trades, which is reflected in the margin calculator’s summary results.
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