Margins
Click here to view SPAN margins
Real time margin is computed by GBOT using CME SPAN® (Standard Portfolio Analysis of Risk), which is used by most of the leading international derivative exchanges in the world.
Initial margin is computed up to client level on an online real time basis, payable on all open positions of Clearing Members, and is payable upfront by Clearing Members in accordance with the margin computation methodology adopted by GBOT from time to time.
The initial margin limits calculated by SPAN® based margining system are utilized/blocked immediately on execution of each trade. The members are alerted at three different levels of utilization of the initial margin, namely by reaching 60%, 75% and 90% margin utilization. The members are placed in "Square-off Mode", upon reaching 100% utilization of their margin limits, after which these members can initiate only such trades which would reduce their open positions.