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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.

Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date. In the world of finance, t...

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Initial Margin

In the world of finance, the concept of derivatives is a crucial one to understand. Essentially, derivatives are financial instruments that derive their value from underlyin...

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Last Trading Day

In finance, the last trading day is the ultimate opportunity for a derivative contract to be either traded or settled before the delivery of the underlying asset or cash set...

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Long Hedge (Futures)

A long hedge refers to a strategy where an investor takes a long position on a futures contract. This is commonly utilized by hedgers who plan to purchase an asset in the fu...

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