3. Margins

In the previous video, we talked about what a futures contract is and the basics. Now let's say, you buy a futures contract, how can the broker and stock exchange be sure you won't default? This is where the concept of margins comes in. In this video, we understand:
1. What margins are
2. The component of margins (SPAN Margin + Exposure Margin)
3. How they are calculated
4. How margins change and affect your trade
Learn more about margins and leave a comment if you have any questions here: zerodha.com/varsity/chapter/m...