Profit and loss on a daily basis in Futures margins

[Sathisha]

Hi ,

I am novice to F&O .
I am trying to understand the futures margins.
I have Volats Futures ending march 26th at Rs 270 level.
I am seeing that average buy price (ATP) is changing each morning.
Does that mean that profit and loss are calcuated for each day.
Is money deducted in case of price going down and money added to account if
price goes up on a daily basis.
Please Clarify. This might be a basic question but I am not able to find the answer anywhere on web.

 

[Riskyman]

Hi ,

I am novice to F&O .
I am trying to understand the futures margins.
I have Volats Futures ending march 26th at Rs 270 level.
I am seeing that average buy price (ATP) is changing each morning.
Does that mean that profit and loss are calcuated for each day.
Is money deducted in case of price going down and money added to account if
price goes up on a daily basis.
Please Clarify. This might be a basic question but I am not able to find the answer anywhere on web.

Yes you are correct.

 

[mohankumardel]

Dear Sathisha

You are correct, profit and loss is calculated and adjusted on day to day basis as per the closing or settlement price of the particular futures contract.
As in you case, if Voltas futures will close in green on a particular day from the yesterdays close then your account will credited with the profit at the end of the day by your broker and debited in case it closes in red.

Refer the resourceful link to understand more about futures trading.http://nseindia.com/products/content/derivatives/equities/about_equity_der.htm