Options Strategy Margin Calculator for Indian Markets
Calculate SPAN + Exposure margin for Iron Condor, Strangle, Straddle, Butterfly, Vertical Spreads, and Naked options on NIFTY, BANKNIFTY, FINNIFTY, MIDCPNIFTY, SENSEX, and BANKEX.
A short strangle on BANKNIFTY can require ₹2 lakh+ in margin while a defined-risk Iron Condor on the same underlying may need just ₹40,000.
Choose Your Strategy
Lot size: 75
Iron Condor Inputs
How Options Margin Works in Indian Markets
SPAN Margin
Standard Portfolio Analysis of Risk, computed by NSE Clearing by running your portfolio through dozens of price and volatility scenarios. It captures the worst-case single-day loss under those scenarios. Typically 10% to 15% of notional for undefined-risk positions; equals max loss for defined-risk strategies.
Exposure Margin
An additional buffer (3% to 5% of notional) charged over SPAN to cover residual risk that the SPAN scenarios may miss, particularly sudden gap moves. For defined-risk strategies like Iron Condors, exposure margin is often zero or minimal.
Margin Comparison Across Strategies
| Strategy | Risk Type | Typical Margin |
|---|---|---|
| Iron Condor | Defined | ≈ Max Loss (spread width × lots) |
| Short Strangle | Undefined | ~15% to 18% of notional |
| Long Straddle | Defined (premium paid) | Premium paid only |
| Butterfly Spread | Defined | Net premium paid |
| Vertical Spread | Defined | Net premium paid |
| Naked Short | Undefined (highest) | ~17% to 20% of notional |
Frequently Asked Questions
Is this calculator accurate?
This is an educational approximation that gives you a close estimate for planning purposes. Exact SPAN margin is computed by NSE Clearing in real time using their full portfolio scanning algorithm. Always verify with your broker's margin calculator before trading.
Why is Iron Condor margin lower than Short Strangle?
Iron Condor is a defined-risk strategy. Your long options hedge the short legs, so NSE charges only the maximum possible loss as margin. Short Strangle has unlimited risk on both sides, so NSE charges a percentage of notional as both SPAN and exposure margin.
What is lot size and why does it matter?
NSE standardises F&O contracts in fixed quantities called lot sizes. NIFTY = 75 units, BANKNIFTY = 30, FINNIFTY = 65. All margin, profit, and loss calculations multiply your per-unit figures by lot size × number of lots.
Can I use this for weekly vs monthly expiry?
The margin calculation is the same regardless of expiry. However, premiums and actual SPAN values will differ because weekly options have higher time decay and different implied volatility profiles.
How do I automate these strategies?
Arkalogi builds custom algo trading systems that execute these strategies automatically, with built-in margin checks, kill-switches, and broker API integration. Book a discovery call to discuss your setup.
Want to Automate These Strategies?
Arkalogi builds custom algo trading software that executes Iron Condors, Strangles, and all the strategies above, automatically, with built-in margin checks and risk controls.
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