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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.

Holder (Option Buyer)

The holder, also known as the owner, of an option contract possesses the privilege to exercise the option within its duration. This privilege is acquired by the holder throu...

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Bull Spread

Let's dive into the concept of Bull Spread, a strategy commonly used by options traders to capitalize on a predicted increase in the price of the underlying asset. This stra...

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Delivery Points

Futures exchanges have specific locations where commodities are delivered upon the expiration of a contract. These locations are carefully selected and approved by the exchan...

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Delivery Month

Contracts are agreements between two parties to buy or sell an asset at a specified price on a predetermined date. In the world of finance, Delivery Month refers to the spec...

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