Futures Margin Calculator India: SPAN Margin, Exposure Margin, and MTM Explained
- Futures margin in India = SPAN margin + Exposure margin, set by SEBI/exchanges. You need this amount in your account to hold a futures position overnight.
- Mark-to-Market (MTM) is settled daily — if Nifty moves 200 points against your position, you lose those points in cash from your account the same evening, even before you close the trade.
- The 1-lot contract value of Nifty Futures is approximately ₹12–13 lakh, but you only need ₹1.3–1.8 lakh in margin — effective leverage of 7–10×.
- SEBI's August 2021 peak margin rules require brokers to collect full margin upfront — the era of 10× broker-provided leverage on intraday F&O is over.
Use our free Futures Margin Calculator to find required SPAN + Exposure margin for any contract, compute MTM P&L for any price move, and calculate effective leverage.
How Futures Margin Works in India
SPAN Margin
SPAN (Standard Portfolio Analysis of Risk) is the minimum margin set by the exchange (NSE/BSE) based on the worst-case one-day loss scenario.
SPAN margin calculation: Exchanges use a complex VAR (Value at Risk) based model accounting for price volatility, liquidity, and correlation. As a trader, you don't calculate SPAN — the exchange publishes it, and your broker displays it.
SPAN margin = approximately 5–7% of contract value for most index and large cap stock futures.
Exposure Margin
An additional buffer over SPAN, also set by the exchange.
Exposure margin = approximately 2–3% of contract value for index futures.
Total Initial Margin
Total Margin = SPAN Margin + Exposure Margin
Effective: approximately 7–10% of contract value.
Current Futures Margin Requirements (Indicative, 2025)
| Contract | Lot Size | Price | Contract Value | SPAN | Exposure | Total Margin |
|---|---|---|---|---|---|---|
| Nifty 50 Futures | 50 | ₹24,500 | ₹12,25,000 | ₹88,000 | ₹55,000 | ₹1,43,000 |
| Bank Nifty Futures | 15 | ₹52,000 | ₹7,80,000 | ₹72,000 | ₹38,000 | ₹1,10,000 |
| Midcap Nifty Futures | 75 | ₹11,200 | ₹8,40,000 | ₹65,000 | ₹42,000 | ₹1,07,000 |
| Reliance Futures | 250 | ₹2,850 | ₹7,12,500 | ₹57,000 | ₹35,000 | ₹92,000 |
| HDFC Bank Futures | 550 | ₹1,720 | ₹9,46,000 | ₹72,000 | ₹46,000 | ₹1,18,000 |
| TCS Futures | 150 | ₹4,100 | ₹6,15,000 | ₹48,000 | ₹30,000 | ₹78,000 |
Mark-to-Market (MTM) Settlement: The Daily P&L Mechanism
Unlike equities (where profit/loss is realised only when you sell), futures P&L is settled daily in cash — called Mark-to-Market (MTM).
How MTM works:
Day 1: You buy 1 Nifty Futures lot at 24,500. Closing price: 24,700. MTM credit: (24,700 − 24,500) × 50 = +₹10,000 credited to your account overnight.
Day 2: New day's position starts at 24,700. Price falls to 24,400. MTM debit: (24,400 − 24,700) × 50 = −₹15,000 debited from your account.
If your account balance falls below the maintenance margin, you receive a margin call — add funds immediately or the broker square-offs your position.
MTM P&L formula: MTM = (Settlement Price − Previous Settlement Price) × Lot Size × Number of Lots
Futures P&L Calculator
Nifty Futures — 2 lots long, Entry: 24,500
| Nifty Level | Move | P&L per Lot | P&L (2 Lots) | % Return on Margin |
|---|---|---|---|---|
| 25,000 | +500 | +₹25,000 | +₹50,000 | +17.5% on ₹2.86L margin |
| 24,800 | +300 | +₹15,000 | +₹30,000 | +10.5% |
| 24,600 | +100 | +₹5,000 | +₹10,000 | +3.5% |
| 24,400 | −100 | −₹5,000 | −₹10,000 | −3.5% |
| 24,000 | −500 | −₹25,000 | −₹50,000 | −17.5% |
| 23,600 | −900 | −₹45,000 | −₹90,000 | −31.5% (margin call territory) |
At 2 lots with ₹2,86,000 total margin: a 900-point (3.7%) adverse move generates ₹90,000 loss — 31.5% of margin — and triggers a margin call.
Rollover: How to Carry Futures Beyond Expiry
Indian futures expire on the last Thursday of each month. To hold a position beyond expiry:
Rollover = Close current month position + Open next month position
Rollover cost: Next month futures typically trade at a premium to current month (cost of carry). For index futures: approximately 0.5–1% per month premium (equal to ~6–12% annualised).
Rollover cost calculation: Current month Nifty Futures: 24,500 Next month Nifty Futures: 24,720 Rollover cost: 24,720 − 24,500 = 220 points = ₹11,000 per lot (to hold for another month)
Futures vs. Options: When to Use Which
| Scenario | Futures | Options |
|---|---|---|
| Strong directional view (high conviction) | ✅ Better leverage, no time decay | ✅ Defined max loss |
| Uncertain direction, expect big move | ❌ Wrong direction = unlimited loss | ✅ Long straddle/strangle |
| Hedge existing portfolio | ✅ Sell Nifty futures to hedge | ✅ Buy puts to hedge |
| Range-bound market | ❌ Slow erosion of capital | ✅ Sell options, collect premium |
| Capital efficiency | ❌ Full margin required | ✅ Only premium for buyers |
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Open Futures Margin Calculator →Disclaimer: This article is for educational purposes only and does not constitute financial, investment, or trading advice. Financial markets involve risk of loss. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making any financial decisions.