Carrying cost in a Futures Contract

#11
I was reading this link and got stuck. My presumption was that one need to pay CoC for holding a futures contract on top of the overheads.

Thanks @travi, @bpr
so it depends on exchange to exchange. In NSE, the CoC is included in the futures premium. Does the same happen with MCX for commodity delivery future positions?

@bpr,
To rollover is there a mechanism to swich over to the next month's contract instead of squaring-off current position then opening a new one for the next month. This would unnecessarily incur additional costs unless the trader is absolutely sure about the underlying's direction.

And the intention of SEBI for physical settlement is a shock. Imagine barrels of CrudeOil delivered at doorstep :wtf:.
 

bpr

Well-Known Member
#12
I was reading this link and got stuck. My presumption was that one need to pay CoC for holding a futures contract on top of the overheads.

Thanks @travi, @bpr
so it depends on exchange to exchange. In NSE, the CoC is included in the futures premium. Does the same happen with MCX for commodity delivery future positions?

@bpr,
To rollover is there a mechanism to swich over to the next month's contract instead of squaring-off current position then opening a new one for the next month. This would unnecessarily incur additional costs unless the trader is absolutely sure about the underlying's direction.

And the intention of SEBI for physical settlement is a shock. Imagine barrels of CrudeOil delivered at doorstep :wtf:.
CoC analysis is so overrated...
CoC always included in the futures premium. It can be negative too. Also CoC changes dynamically every second and not constant.

To rollover there is no special facility ...you have to do it manually.

What is your background ? new to Indian markets ??
 
#13
CoC analysis is so overrated...
CoC always included in the futures premium. It can be negative too. Also CoC changes dynamically every second and not constant.

To rollover there is no special facility ...you have to do it manually.

What is your background ? new to Indian markets ??
MIS reporting - CWFM basically.

Totally new and cripplingly struggling to figure out market direction!

Since December'16, reading books, learning AFL (got Ami license), observing markets, building to crash strategies - then rebuilt, interested in derivatives!
 

travi

Well-Known Member
#14
MIS reporting - CWFM basically.

Totally new and cripplingly struggling to figure out market direction!

Since December'16, reading books, learning AFL (got Ami license), observing markets, building to crash strategies - then rebuilt, interested in derivatives!
Study price and volume action along the way, there is a lot of it out there.

This will make you technically stronger.
As an analogy, if you took away all the calculators and handed ppl pen/paper, those who would survive are the ones i'm referring to :)
 
#15
if you took away all the calculators and handed ppl pen/paper, those who would survive are the ones i'm referring to :)
Ha ha ha! :D

Truly the spectrum of all available indicators is a real fallacy. I fail to understand how to use a formula which is derived from price and use the signals from that indicator to predict the progression of original data point (price) from which it was derived in the first place - bound to fail at some point! Volume is the only key and its correct judgement w.r.t. price can honestly depict the real picture.

Finished Anna Coulling's A complete guide to volume price analysis few months ago. Great perspective!

But hard to get Cumulative Delta Vol charts or Market Profile chart for a miniature retailer like me in India. Used @kaka's MP in Amibroker for study. Also experimented with @josh's NEST RTD then coded Cumulative Delta Vol in AB. On few setups would show promise but not always.

My struggle is to anticipate Market's direction with concrete certainty even if for a short period of time.....
 

sanju005ind

Investor, Option Writer
#16
Ha ha ha! :D

Truly the spectrum of all available indicators is a real fallacy. I fail to understand how to use a formula which is derived from price and use the signals from that indicator to predict the progression of original data point (price) from which it was derived in the first place - bound to fail at some point! Volume is the only key and its correct judgement w.r.t. price can honestly depict the real picture.

Finished Anna Coulling's A complete guide to volume price analysis few months ago. Great perspective!

But hard to get Cumulative Delta Vol charts or Market Profile chart for a miniature retailer like me in India. Used @kaka's MP in Amibroker for study. Also experimented with @josh's NEST RTD then coded Cumulative Delta Vol in AB. On few setups would show promise but not always.

My struggle is to anticipate Market's direction with concrete certainty even if for a short period of time.....
One need not know the future to be profitable in the Market. One needs to accept the inherent nature of uncertainty of the markets.
Take any simple setup which shows a reasonable chance of recurrence. Try to trade it with proper MM .Take every trade when you get a signal setup.Though the outcome will be random.Over the long run the edge will manifest in the form profitability. If you wait for Certainty then the wait will be till eternity.
 
#17
If you wait for Certainty then the wait will be till eternity.
You see the problem is, I am a mammal who has evolved from being a reptile. Going beyond my own natural brain structure is an extreme leap for my very existence. Tackling instant gratification within the umbrella of greed & fear is creating a conflict of interest within me!

BTW, so far haven't come across any
simple setup which shows a reasonable chance of recurrence
Everything seems to contradict with its own rules or methods........Your guidance would help immensely!
 

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