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Why is the margin blocked on Kite different from what I see on the margin calculator?

SPAN and exposure margins on the margin calculator are updated once, at the beginning of the trading day.  However, the actual margins required and blocked on Kite are dependent on the margin (SPAN, exposure) files released by the exchange.

The exchange releases 6 SPAN files during the day. One before the market opens, 4 files during trading hours and one after market close. We update the same within 10-15 minutes of receiving the files.

Since the files are received, at different point of times, the margins SPAN margins change during the day based on the following factors:

  • Price change (% change during the day)
  • Change in volatility(increase in volatility of the contract increase the margin required)
  • Time to expiry.
While time to expiry has very little effect on the SPAN margins, price change and volatility can change the margin requirement drastically if there has been a significant change in price during the day.

This is the reason the margin blocked on Kite and the margin shown in the margin calculator is different.