What's Margin?

Profits or losses from futures and options trading are determined by the future prices of the underlying assets.
Adverse fluctuations of such prices may cause significant losses in the future. Margin is deposited to ensure that the payments are made even when such losses are incurred.

Margin Deposited by Customers
Margin Deposited by Participants

How much is required as margin?

Margin Requirement for futures and options trading shall be the amount calculated by deducting "Total Amount of Net Option Value" from "SPAN Requirement" which reflects the assessed future risk (estimated gains and losses) of an entire portfolio.

Margin Requirement = SPAN Requirement - Total Amount of Net Option Value

SPAN Requirement

SPAN Requirement shall be the worst possible portfolio loss arising from market fluctuation, etc. subtracting loss amounts that can be theoretically offset in that portfolio.

SPAN Requirement shall be calculated by PC-SPANĀ®, etc. using SPAN Risk Parameter File distributed by the JSCC every business days. (SPAN Parameter shall be reviewed every week.)

Please refer to the JSCC website for SPAN risk parameter files, SPAN parameters and other related matters.

Japan Securities Clearing Corporation (JSCC)icon-block

Total Amount of Net Option Value

Total Amount of Net Option Value is intended to cover the risk arising from the exercise of options, etc. and shall be calculated by deducting the total amount of short option value from that of long option value.

Total Amount of Net Option Value = Total Amount of Long Option Value - Total Amount of Short Option Value

Long Option Value = Long Positions (Net long positions) x Settlement Price x Trading Unit

Short Option Value = Short Positions (Net short positions) x Settlement Price x Trading Unit

Settlement Price: Theoretical price, etc. on that day
Trading Unit: 1,000 for Nikkei 225 Options
10,000 for TOPIX Options
1,000,000 for Options on 10-year JGB futures
one trading unit of each underlying security for Security Options
Ex. Sample calculation of Margin Requirement