Exposure margin, an additional charge beyond the SPAN margin, is imposed by the exchanges to mitigate risks that the SPAN margin might not fully cover.<\/p>\n\n\n\n
Note:<\/p>\n\n\n\n
For index futures and index option selling, exposure margins amount to 2% of the contract value (Spot price * Lot size). When dealing with stock futures and option selling, it equates to 3.5% of the contract value (Spot price * Lot size) or 1.5 standard deviations of the logarithmic returns of the underlying share over the past 6 months.<\/p>\n\n\n\n
The combination of SPAN and Exposure margin is referred to as the initial margin, which is collected upon entering a position. You can find this information displayed on the CubePlus order window.<\/p>\n\n\n\n
<\/p>","protected":false},"excerpt":{"rendered":"
CubePlus utilizes the Standard Portfolio Analysis of Risk (SPAN) method, a tool employed by exchanges to assess risk and margins for F&O portfolios. SPAN considers factors such as the underlying security’s price, volatility, and other variables to calculate the potential maximum loss for a portfolio, determining an appropriate margin. This margin is actively monitored and […]<\/p>","protected":false},"author":1,"featured_media":0,"parent":11622,"menu_order":86,"comment_status":"closed","ping_status":"closed","template":"","doc_tag":[],"acf":[],"_links":{"self":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11627"}],"collection":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/comments?post=11627"}],"version-history":[{"count":0,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11627\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/docs\/11622"}],"wp:attachment":[{"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/media?parent=11627"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/faq.tradejini.com\/wp-json\/wp\/v2\/doc_tag?post=11627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}