How to compute commodity margin on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Commodity margin on MCX is computed using the SPAN (Standard Portfolio Analysis of Risk) methodology, the same framework used for equity futures and options on NSE. Understanding how to calculate margin accurately before placing a trade prevents the two most common failure modes on commodity derivatives: the RMS auto-squareoff from a margin shortfall, and the shock of a mid-session margin call after an exchange SPAN revision.

This guide covers the full computation workflow using Zerodha’s SPAN calculator, the variables that drive margin levels, cross-margining for hedged positions, and the role of CTT and other charges in the overall cost calculation.

Commodity Margin on WebNotes

How to compute commodity margin on Zerodha