Understanding Margin Requirements on Punch

Learn how margin works on Punch — what SPAN, exposure, and available margin mean, and how to check your margin before placing trades.

Written By Archit Sunat

Last updated 27 days ago

What is margin in trading?

Margin is the amount of funds you need to have in your trading account to place and hold trades. It acts as collateral for the positions you take. Different types of trades require different margin amounts based on exchange regulations and the risk involved.

Types of margin on Punch

Punch displays different types of margin depending on the segment you're trading in:

  • SPAN margin: Required for Futures & Options (F&O) trading. This is calculated by the exchange based on the risk of your position.

  • Exposure margin: Additional margin required for F&O positions, set by the exchange as an extra buffer against volatility.

  • VaR margin: Value at Risk margin required for equity intraday (MIS) trades. This allows you to trade with leverage during the day.

How to check your available margin on Punch

You can view your available margin in the Funds section of the app. This shows you how much margin you have free to place new trades.

  1. Open the Punch app

  2. Navigate to the Funds or Portfolio section

  3. Check your "Available margin" or "Available funds"

Margin requirements by segment

Different trading segments have different margin requirements:

  • Equity delivery (CNC): You need the full amount to buy shares. No leverage is provided for delivery trades.

  • Equity intraday (MIS): You can trade with leverage using VaR margin. The margin required is lower than the full trade value, but you must square off positions before market close.

  • Futures & Options (F&O): Requires SPAN margin + exposure margin. F&O positions on Punch are overnight only — there is no separate intraday margin benefit for options.

What happens if margin is insufficient?

If you don't have enough available margin to place a trade, your order will be rejected. Make sure to check your available margin before placing orders, especially for F&O trades which can require significant margin.

Margin blocked vs available margin

When you place an order, the required margin gets blocked from your available balance. Once the order is executed or cancelled, the margin is either consumed (for open positions) or released back to your available margin.

Important notes

While Punch charges a flat ₹1 brokerage per trade, margin requirements are set by the exchange (NSE/BSE), not by Punch. These requirements can change based on market volatility and exchange regulations.

Punch supports MIS (intraday) and CNC (delivery) for cash and equity trades. For F&O, positions are overnight only.