Dear Members,
I am new to trading. I tried to understand rules on F&O shares. My father had an account of trading and dmat account. It happens last month august series and continues in sept series due to roll over.
I have question about future trading as:
if i bought 500 shares of any share on 4th sep 2012 at price Rs 100 and it's series will expire on 27 sept 2012 with price Rs 90 what will happens:
case 1: There will be loss of Rs 10 plus other charges. So total profit / loss in this case 500 * 10 = - 500 at end of series and - 500 deducted from my balance.
Case 2: 4th sept: closing of share at Rs 110. There is settlement and share sold at 110 so profit Rs 10. As 500 * 10 = 500
5th Sept: Share bought at Rs 110 at 9.15. Share last traded at 3.10pm or 3.30 pm at RS 90. as 110-90 = -20. So total bill 500 * 20 = -1000
6th sept Share bought at 90 at 9.15. Share last traded at 70. So profit/ loss = 90 - 70 = -20 Total P/L = 500 * -20 = - 1000
7th sep share bought at previous closing at 70 and sold at closing 50. so Profit / loss same = - 1000
Total money deducted in this case Profit / loss = 500 -1000- 1000 = -1500
So rs 1500 deducted from my account and loss of Rs 1500 in three days. in this case is it right or wrong?
Question are: Is first scenario is applicable or 2nd scenario?
Please help since due to 2nd case we are loosing money, my broker is denied mode, not guiding what is happening and this was trade which we never authorized?
If above both cases are wrong, then what will be correct case.
Thank's & Regard's
Vivek
I am new to trading. I tried to understand rules on F&O shares. My father had an account of trading and dmat account. It happens last month august series and continues in sept series due to roll over.
I have question about future trading as:
if i bought 500 shares of any share on 4th sep 2012 at price Rs 100 and it's series will expire on 27 sept 2012 with price Rs 90 what will happens:
case 1: There will be loss of Rs 10 plus other charges. So total profit / loss in this case 500 * 10 = - 500 at end of series and - 500 deducted from my balance.
Case 2: 4th sept: closing of share at Rs 110. There is settlement and share sold at 110 so profit Rs 10. As 500 * 10 = 500
5th Sept: Share bought at Rs 110 at 9.15. Share last traded at 3.10pm or 3.30 pm at RS 90. as 110-90 = -20. So total bill 500 * 20 = -1000
6th sept Share bought at 90 at 9.15. Share last traded at 70. So profit/ loss = 90 - 70 = -20 Total P/L = 500 * -20 = - 1000
7th sep share bought at previous closing at 70 and sold at closing 50. so Profit / loss same = - 1000
Total money deducted in this case Profit / loss = 500 -1000- 1000 = -1500
So rs 1500 deducted from my account and loss of Rs 1500 in three days. in this case is it right or wrong?
Question are: Is first scenario is applicable or 2nd scenario?
Please help since due to 2nd case we are loosing money, my broker is denied mode, not guiding what is happening and this was trade which we never authorized?
If above both cases are wrong, then what will be correct case.
Thank's & Regard's
Vivek