I am new to Futures & before starting trading in Futures I want to clear some doubts.
In india futures are settled in cash only not a delivery is made, I think i am correct.
But i want to know how to end the future position ,
suppose i take long position in future at one day & on the same day if i take short position then can i get out of both the positions having no any liability & i will get or have to pay the difference amount OR
suppose one day ABB's future is at 3500 & its spot price is 3485 then that day if I have short ABB future @ 3500 & wants to close the position then what should i do whether taking reverse position in future or any other else
becoz my understanding is if we donot take reverse position then on delivery date difference between spot price & future price is calculated & crediteded or debited Finally
if I want the same thing on the day when i will short the ABB future @ 3500 fthen whether FINAL SETTLEMENT can be happened without taking reverse position.
In short what are the ways to close the position in Futures
I) reverse position???
II) Any else before maturity date
Also I want to ask that can I extend my one month future contract to next month or not
I know that my doubts are very silly & negligible , but if you clear that
it will help me more to study more about futures
I request all Sr & Co members to clear my doubts
In india futures are settled in cash only not a delivery is made, I think i am correct.
But i want to know how to end the future position ,
suppose i take long position in future at one day & on the same day if i take short position then can i get out of both the positions having no any liability & i will get or have to pay the difference amount OR
suppose one day ABB's future is at 3500 & its spot price is 3485 then that day if I have short ABB future @ 3500 & wants to close the position then what should i do whether taking reverse position in future or any other else
becoz my understanding is if we donot take reverse position then on delivery date difference between spot price & future price is calculated & crediteded or debited Finally
if I want the same thing on the day when i will short the ABB future @ 3500 fthen whether FINAL SETTLEMENT can be happened without taking reverse position.
In short what are the ways to close the position in Futures
I) reverse position???
II) Any else before maturity date
Also I want to ask that can I extend my one month future contract to next month or not
I know that my doubts are very silly & negligible , but if you clear that
it will help me more to study more about futures
I request all Sr & Co members to clear my doubts
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