Brokers who charge only SPAN margin

Tejas Khoday

Co-Founder & CEO, FYERS
Hey @tharun232,

As a trader, I know how tempting it can be to trade with lesser margins per position and utilize as much leverage as possible. However, the rules of the game are changing and this is not possible anymore. If any broker is offering such a facility, be rest assured that they are not safe to deal with. Why? Because SEBI has mandated that the exchanges should block SPAN + Exposure Margins from the brokers on all derivative positions.

Hence, if any broker is offering only SPAN for overnight trades, it effectively means that they are funding you and it is not sustainable or even compliant.

Hope this clarifies.