Good explanation of span margin and exposure margin here
https://tradingqna.com/t/wat-is-the-difference-between-span-margin-n-exposure-margin/4142
Exposure margin is indeed at the discretion of broker i.e optional
Thus explains why exposure margin can vary between brokers.
I doubt though if it is really decided by broker or PCM who clear the trades
Currently SPAN is varies from 5 to 10% for most equity derivatives.
lets just say average is 7.5%
on top Zerodha charge 5% exposure margin for all equity derivatives and 3% for index derivatives.
So to mitigate 1% risk they are charging almost double the span margin hmm
that explains why I felt margin is always high ...
https://tradingqna.com/t/wat-is-the-difference-between-span-margin-n-exposure-margin/4142
Exposure margin is indeed at the discretion of broker i.e optional
Thus explains why exposure margin can vary between brokers.
I doubt though if it is really decided by broker or PCM who clear the trades
Currently SPAN is varies from 5 to 10% for most equity derivatives.
lets just say average is 7.5%
on top Zerodha charge 5% exposure margin for all equity derivatives and 3% for index derivatives.
So to mitigate 1% risk they are charging almost double the span margin hmm
that explains why I felt margin is always high ...
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