thanks columbus and pakatil,
One more doubt with rolling over (selling this month's contract and buying next month's contract):
Please observe the difference of last price of June26 and July31 Contracts, the difference is 4245.05 - 4206.20 = 38.85.
If I sell my June26 contract and buy the July31 contract, what happens? do I get the 38.85 as profit from today (before june expiry) onwards, or I will get M-T-M from 27th June (start of July future). Please enlighten. and many thanks for guiding me
One more doubt with rolling over (selling this month's contract and buying next month's contract):
Code:
Instru - Undlyng - Expiry Date - High Price - Low Price - Prev Close - Last Price - Number of contracts traded - Turnover in Rs. Lakhs - Underlying Value
FUTIDX - MINIFTY - [B]26JUN2008[/B] - 4263.00 - 4080.00 - 4171.70 - [B]4245.05 [/B] - 34508 - 28928.75 - 4251.50
FUTIDX - MINIFTY - [B]31JUL2008[/B] - 4223.00 - 4050.05 - 4142.90 - [B]4206.20 [/B] - 31001 - 25775.97 - 4251.50
FUTIDX - MINIFTY - 28AUG2008 - 4219.00 - 4025.00 - 4141.10 - 4204.05 - 1072 - 890.66 - 4251.50
If I sell my June26 contract and buy the July31 contract, what happens? do I get the 38.85 as profit from today (before june expiry) onwards, or I will get M-T-M from 27th June (start of July future). Please enlighten. and many thanks for guiding me
Dear fast rizwaan ,
very intelligent question.Consider that you closed your june futures at 4245 and took FRESH july positions at 4206.Your MTM is calculated as 20*(yesterday's close of june minifty- 4245)+ 20 *(4206-4206).Just for example sake ,let us assume that JULY mininifty is closed at 4210. In that case you will get additional 80 Rs ( 20*(4210-4206)) as MTM.I feel my calculation is ok.I feel happy if someone endorse it.
Mr.Vinod sent clarification on some other thread that FUTURES WHICH ARE LEFT OPEN WILL BE SQUAREDOFF AUTOMATICALLY.