Exposure Margin
The extra buffer NSE charges on top of SPAN margin to cover sudden, outsized market moves.
Definition
Exposure margin is an additional margin the exchange collects from traders in the futures and options segment, charged over and above the SPAN margin. SPAN covers the statistically modelled worst-case loss of your portfolio, while exposure margin is an extra cushion designed to absorb moves that exceed those scenarios. Together they form the total upfront margin you must have to open and hold a position.
Why it matters
When traders talk about the margin needed to sell an option or buy a future, they almost always mean SPAN plus exposure. Ignoring the exposure component leads to under-budgeting capital and unexpected shortfalls. Exposure margin also tends to scale with the value and volatility of the underlying, so it rises in turbulent markets — exactly when capital is tightest. Sizing positions around total margin, not just SPAN, keeps you out of forced exits.
Example
Suppose selling one lot of an index future requires roughly Rs 90,000 of SPAN margin. The exchange may add an exposure margin of, say, Rs 20,000 as a buffer. Your broker then blocks about Rs 1,10,000 in total before letting the trade through. If you had only budgeted for the SPAN figure, the order would have been rejected for insufficient funds.
See it live
Track index futures and option positioning in real time on TradePulse's live option chain before you commit margin.