A margin calculator is your companion to find out the profit margin and other important aspects about your futures and options trade. In this profit margin calculator, you can calculate all the crucial variables of your trade.
You can take your margin trade to a whole new level with the help of an option margin calculator. This tool works for equity and index trade. As you can get a break up of margin components that include type of contract, buy and sell, premium margin, span margin, exposure margin etc.
The F&O margin calculator is available online you can enter your trade detail and get results instantly.
There are various types of margin that can be used in the margin calculator. These are as follows:
The SPAN Margin
In the SPAN margin, it is the most basic and major F&O trade. The SPAN stands for the Standardised Portfolio Analysis of Risk. This type of margin is used to measure the maximum loss that can happen in the portfolio. You can get SPAN margin six times a day, therefore depending upon the value changed you can use the margin calculator.
The Exposure Margin
In the exposure margin, you can check the additional margin collected to protect the broker’s liability in adverse market conditions.
Extreme Loss Margin
For the extreme loss margin you get the result for the losses that might occur beyond the VAR margins. It is considered the highest of the following two values such as the 5% of the value of the asset position in the trade. 1.5 times to the standard deviation of the daily logarithmic return of the assets price over the last six months.
The VAR Margin
A Value at Risk margin is the calculation that measures the probability of a loss in an asset’s value which is based on the statistical analysis of historical price movements as well as volatility of the asset.
To use a profit margin calculator you need to check the type of your trade whether it's commodity, equity or other type of investments.
Trading in the futures and options contract you need a margin requirement for a smooth and higher capital. Using a margin calculator online for a quick as well as accurate assessment of margin required, fulfil the requirement and trade easily in the share market.
You need to carefully select the input and enter the correct data to get an accurate result from the above profit margin calculator. The total margin is calculated and needed to compute the SPAN margin and the exposure margin individually. The margin calculation is not an easy calculation, but through the options margin calculator you can easily get your solution for margin trade. This tool uses a simple tool and computes results based on the input provided by the user.