At the time of initiating trades on the stock and commodity exchanges in India, exchanges usually block margins. These margins comprise of 2 components which include SPAN margins and Exposure margins. What is SPAN Margin? SPAN margin derives its origin from SPAN i.e. Standard Portfolio Analysis of Risk which is […]
Introduction of Close to Money [CTM] – Do not exercise option on Expiry Day
A long pending systemic issue of the capital markets in the derivatives segment was the STT anomaly on expiry day in case of In the money long options. You can find the complete information on STT Trap article on the SAMCO Knowledge Center.With effect from August 31, 2017, the exchanges NSE and BSE have provided a […]
What is Exposure margin?
What is the Meaning of Exposure Margin? In addition to SPAN margin which is collected at the time of initiating trades, an additional margin over and above the SPAN margin is collected which is known as the Exposure margin and is also known as additional margin. This margin is collected in […]