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    What is SPAN and exposure margin?

    Two essential elements that together make up the initial margin needed to enter a position in futures and options (F&O) trading in India are the SPAN margin and the exposure margin.

    1. Standard Portfolio Analysis of Risk, or SPAN Margin, is the bare minimum needed to offset possible market-movement losses.

    determined by the exchange using risk models (such as NSE/SPAN).

    depends on how volatile your trades are and how big your positions are.

    1. Exposure Margin:

    An extra safety net above the SPAN margin.

    set by the exchange to guard against unforeseen changes in the market or black swan situations.

    typically a set percentage of the agreed-upon amount.