regulation · advanced
SPAN margin
SPAN margin is a portfolio-based initial margin system widely used for Indian futures and options.
SPAN scenarios estimate worst-case portfolio losses across price and volatility shifts.
Net option and futures offsets within a product can reduce total SPAN requirements.
Exchanges publish SPAN risk parameter files that brokers apply in risk engines.
Exposure margins may apply in addition to SPAN for F&O positions.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.