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hi guys iamp;#39;m pratik singh letamp;#39;s talk about margin now remember in an earlier example in forwards we talked about the risk of default between two parties when they were exchanging gold well margin in futures is a mechanism to prevent that default basically anyone whether buying or selling has to put up some money to enter into that contract now this is the reason why brokers charge a margin itamp;#39;s to prevent the risk of a default and margin as you know is basically a small percentage of the entire contract value now the margin itself is divided into two parts span and exposure as a trader you wonamp;#39;t be able to see these numbers on your broker terminal or anywhere else but that margin components are basically built of span and exposure both which are mandated by the stock exchange now the span and exposure margin is actually calculated up to three times a day every day and it keeps changing during the day based on volatility i mean if you think