How is the margin calculation done in case of calendar spread?

Spread position value is calculated by multiplying the weighted average price of position in far month contract and spread position quantity. Spread margin % is then applied to spread position value to arrive at spread margin.

In the above mentioned example margin position of 100 shares in Future – ACC- 26 Mar 2002 will be subjected to IM% and 100 spread position quantity would attract spread margin %. However, you will able to view only overall margin figure on open position page. Assuming IM and spread margin at 20% and 10% respectively, overall margin to be calculated as follows:

(a) Spread Margin

100*160*10%

Rs. 1600

(b) Non-Spread Margin

100*150*20%

Rs. 3000

 

(c) Overall Margin

a+b

Rs. 4600

 

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