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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.

Expiration Date

The option expiration date marks the end of an option's validity and is a crucial factor in the decision-making process for traders. It serves as the deadline for exercising...

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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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Derivative Security

Securities that derive their value from another security are known as underlying securities. This means that their worth is influenced by the features and value of the under...

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Derivative

These instruments can be used for hedging risks or for speculation. Derivatives, also referred to as financial derivatives, are contracts that derive their worth from the un...

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