Futures Margin & Leverage Calculator
Determine initial SPAN + Exposure margin requirements, effective leverage, and margin utilization.
Professional trade parameters advise risking at most 1% to 2% of equity per transaction.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
Contract price ₹24,500, lot size 50, 2 lots at 12% statutory margin requirement with ₹4,00,000 account equity.
A ₹2,94,000 deposit controls ₹24.50 Lakh in notional exposure. Account utilization is 73.5%, leaving ₹1,06,000 buffer.
Assumptions & Parameters
- Margin rate reflects combined SPAN and exposure margin percentages prescribed by clearing corporations.
Frequently Asked Questions
What is initial margin in futures?
Initial margin is the minimum capital required in your trading account to initiate and carry an open futures position.
What is SPAN margin?
SPAN (Standard Portfolio Analysis of Risk) margin is a standardized algorithm used by exchanges to calculate portfolio risk.
How is effective leverage calculated?
Effective leverage equals total notional value of the contract divided by margin deposited.
What is a dangerous margin utilization percentage?
Utilization above 75% leaves minimal cushion. Adverse market gaps can trigger sudden margin calls or automatic liquidation.
Can margin requirements change while holding overnight?
Yes. Exchanges can hike margin percentages during periods of extreme market volatility.
What is free usable equity?
Free equity is your total account balance minus margin locked into active derivative contracts.