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SPAN Margin

Let's delve into the world of finance and explore the concept of initial margin for the F&O segment. This margin is not calculated on an individual basis, but rather on a portfolio approach. To perform this calculation, we use a software called SPAN® (Standard Portfolio Analysis of Risk). This powerful tool generates 16 different scenarios by adjusting price and volatility values. It then determines the potential loss the portfolio could face in each scenario. This allows us to make informed decisions and manage risk effectively in the F&O segment.

Clearing Margin

As a savvy investor, it is important to understand the concept of clearing margin and its role in securing your financial transactions. The clearing margin serves as a form ...

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In-the-money

An option is considered In-the-money when the buyer is in a profitable position at a specific spot price of the underlying securities. This term is used in reference to both ...

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Options Contracts

This allows investors to speculate on the future price movements of an asset without committing to a purchase. An option contract is a vital financial tool that grants inves...

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Covered Call Option Writing

In this particular trading approach, the investor maintains ownership of a security for a prolonged period while also selling a call option on that same security. This allow...

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