Zerodha Margin calculator SPAN

Zerodha margin calculator

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The Zerodha margin calculator at zerodha.com/margin-calculator is a free public tool that computes the SPAN + Exposure margin required for any F&O contract or multi-leg strategy. It is widely used by Indian retail F&O traders for pre-trade planning.

What it shows

For a given contract or combination of contracts:

OutputDetail
SPAN marginWorst-case loss across exchange stress scenarios
Exposure marginFixed-percentage buffer
Total initial marginSPAN + Exposure (the upfront requirement)
Premium impactFor options, the premium paid / received
Hedge benefitWhen multi-leg strategies are entered
Final marginNet margin after hedge benefit

The calculator updates with the latest SPAN file from NSE Clearing.

Why use it

  • Pre-trade sizing. Verify your margin available is sufficient before placing a trade.
  • Strategy comparison. Compare margins of different option strategies for the same view.
  • Hedge optimisation. See how a hedge leg reduces the SPAN for a short option position.
  • Education. Understand how margin scales with notional, volatility, expiry distance.

How to use it

  1. Visit zerodha.com/margin-calculator .
  2. Select the segment (Equity F&O, Currency, Commodity).
  3. Pick the contract (underlying + expiry).
  4. Set quantity (in lots).
  5. For options, set the strike and type (CE / PE).
  6. Set buy or sell.
  7. For multi-leg, repeat for each leg.
  8. View the computed margin.

The interface supports up to 5 legs (or more depending on the build) per strategy.

What it does not show

  • Charges (brokerage, STT, exchange, GST, stamp, SEBI). Use the brokerage calculator for that.
  • Your own funds. It computes the requirement; what you have is shown on Kite Funds .
  • Cash component split. SPAN + Exposure total only; not the 50:50 cash collateral split .
  • Real-time during session. The calculator uses latest published SPAN file; intraday SPAN updates may not reflect immediately.

Multi-leg strategies

The calculator’s multi-leg feature is the most useful capability. Examples:

  • Bull call spread (long lower strike CE, short higher strike CE): much lower margin than the short leg alone.
  • Iron condor (long + short calls, long + short puts): substantial hedge benefit.
  • Calendar spread: cross-expiry; modest hedge benefit.
  • Strangle (short OTM call + short OTM put): partially hedged; SPAN sees both tails.

For each, the calculator shows:

  • Margin if each leg traded standalone.
  • Combined margin with hedge benefit applied.
  • Margin saved.

SPAN file refresh

NSE Clearing publishes the SPAN file:

  • End of trading day (most common).
  • Mid-day for some volatile scenarios.

The Zerodha calculator updates within minutes of new file release. For absolute current values, the calculator is the most accurate retail tool.

Comparing with the Kite order ticket

The Kite order ticket’s Margin required field computes the same thing for an active trade. The calculator is for hypothetical planning; the order ticket is for actual order placement.

Integration with Kite Connect

For programmatic access to margin computation, Kite Connect API offers a margin endpoint. Algorithmic traders can compute margin before placing orders via API.

Limitations

  • Doesn’t apply your specific account state. Generic computation; doesn’t know your existing positions.
  • Pre-expiry physical delivery margin for stock F&O may not be fully reflected.
  • Custom hedge benefit caps by SEBI / NSE may differ slightly.
  • Currency / commodity margins differ in calculation style; the calculator covers both but verify segment.

See also

External references

References

  1. NSE Clearing, SPAN methodology and parameter file, nseclearing.com.
  2. SEBI, F&O margin framework, sebi.gov.in.
  3. Zerodha, Margin calculator documentation, zerodha.com.
  4. Zerodha Support, Using the margin calculator, support.zerodha.com.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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