Risk & Margin

Exposure Margin

An additional margin charged on top of SPAN margin, acting as an extra buffer for risk beyond the SPAN estimate.

Exposure margin is charged in addition to SPAN margin, acting as an extra buffer to cover risk beyond what the SPAN model alone estimates — particularly useful for covering sudden, sharp price moves.

Total Margin Required = SPAN Margin + Exposure Margin

See how this fits into total margin requirements in Margin in F&O Trading Explained: SPAN and Exposure Margin.