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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.