Brief Introduction To Margin Calculator & Brokerage Calculator:

By Author: Vinay Pale
Total Articles: 11
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While doing Future & Options trading, it is really important to know about the margin. Before getting involved in F&O Trading, one needs to deposit the initial margin with the broker. This is mainly done to protect the brokers if the buyer or seller makes losses while trading in futures and options due to price volatility.

However, the margin differs from share to share and index to index. This is where you need a margin calculator to have an idea about the margin to trade in the equity or index F&O.

Now let’s see the types of margins that one need to consider:

Span Margin: Short form of Standardized Portfolio Analysis of Risk, a SPAN Margin Calculator determines the margin by using complex algorithms. The SPAN margin calculator arrives at the initial margin which is equal to the highest loss that a portfolio could suffer. The SPAN margin gets changed six times a day, so the result varies depending on the time of the day.

Value at Risk Margin: This margin helps to determine the possibility of the loss of a value of an asset based on different statistical analyses. Margins will depend ...
... on whether securities are listed by Group I, Group II or III.

Extreme Loss Margin: Extreme Loss Margin is calculated at the end of the month by considering the rolling data of the past six months.

Brokerage Calculator:

Brokerage amount is the payment one needs to give to the broker while undertaking a particular transaction. It helps you to calculate and compare the commodities, currency, equity, futures and options, intraday and carry forward transactions.

This tool helps an investor in several ways. This calculator provides a genuine result without any hidden terms and conditions. With the help of a brokerage calculator, the investor gets an idea about the charges instantly even before starting the trading process.

A brokerage calculator gives you a clear idea about all the payments carried out for a particular transaction, thus helping you to make a better decision.

Advantages of using a Brokerage Calculator:

Price Point: Price point is one of the main attributes that is offered by banks, broking companies etc. An investor will always be willing to pay if the brokerage cost is competitive and reasonable.

Accuracy: A brokerage calculator gives you accurate information about all the charges involved without any hidden or misleading information

Time Effectiveness: The best part of a brokerage calculator is that you get to know the charges before even carrying out the trade.

Competitors: This calculator also makes the information available for viewing the competition costing.

In conclusion:

So, as you can see from the above article, both these calculators are beneficial for making the right choice in investing. Make good use of these and invest wisely.