Mini Nifty futures - Brokerage, Margins and other issues

columbus · #21 25th June 2008, 11:37 PM

Quote:

Originally Posted by fast_rizwaan

thanks columbus and pakatil,

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 - 26JUN2008   - 4263.00    - 4080.00    - 4171.70    - 4245.05    - 34508                       - 28928.75              - 4251.50
FUTIDX - MINIFTY - 31JUL2008   - 4223.00    - 4050.05    - 4142.90    - 4206.20    - 31001                       - 25775.97              - 4251.50
FUTIDX - MINIFTY - 28AUG2008   - 4219.00    - 4025.00    - 4141.10    - 4204.05    - 1072                        - 890.66                - 4251.50

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

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.

columbus · #22 26th June 2008, 12:11 AM

Quote:

Originally Posted by ravalsb

Hi Columbus, All Futures and Options (ATM and ITM) open positions for the current month will be automatically settled on expiry.

Regards

Dear ravalsb,

I stand CORRECTED.Perhaps this messages for vinodji may help you.
".......Hi Vinod, sorry to interrupt. Would like to add here for the sake of clarity that OTM options would not be settled and will be valued zero on settlement...."

mugildata · #23 7th July 2008, 04:56 PM

Very good thread, please keep it up.
I am also new to nify and I have one doubt. Suppose I buy july futures at 3950 today, and the closing mini-nifty being today being 3977. I hold it and sell tommorrow at 3970, then what will be my profit will it be (3977-3950)+ (3977-3970)=20? Please enlighten. I still do not understand how this nifty difference is credited into account.

columbus · #24 7th July 2008, 09:55 PM

Quote:

Originally Posted by mugildata

Very good thread, please keep it up.
I am also new to nify and I have one doubt. Suppose I buy july futures at 3950 today, and the closing mini-nifty being today being 3977. I hold it and sell tommorrow at 3970, then what will be my profit will it be (3977-3950)+ (3977-3970)=20? Please enlighten. I still do not understand how this nifty difference is credited into account.

Yes,you are right. Irrespective of closings the TOTAL PROFIT= BuyPrice-SellPrice in case of the above example ,is known as ,LONG POSITION. For SHORT position ,Profit=Sellprice-Buyprice.(Short position is simply OPPOSITE of your example,that is ,selling first the futures at 3977 and buying them at 3950 later).

praveen taneja · #25 31st July 2008, 06:42 PM

Quote:

Originally Posted by columbus

Yes,you are right. Irrespective of closings the TOTAL PROFIT= BuyPrice-SellPrice in case of the above example ,is known as ,LONG POSITION. For SHORT position ,Profit=Sellprice-Buyprice.(Short position is simply OPPOSITE of your example,that is ,selling first the futures at 3977 and buying them at 3950 later).

sir i m interested in mini nifty but hav few querries that if i place once my stop loss is it for whole mnth or i hav to place daily basis n wat if mkt open gap up or gap down????
2) at wat level broker will square up my trade when margin fell short or my a/c balance ends?????
3) is the brokerage n margin etc are same for going long or short ???? pls clarify me i m confuse on that thnx????

columbus · #26 31st July 2008, 08:01 PM

Quote:

Originally Posted by praveen taneja

sir i m interested in mini nifty but hav few querries that if i place once my stop loss is it for whole mnth or i hav to place daily basis n wat if mkt open gap up or gap down????

Since all orders are GFD (Good For Day) orders.If you look for VALIDITY of order it will be always GFD.So we need to place order daily.

Quote:

3) is the brokerage n margin etc are same for going long or short ???? pls clarify me i m confuse on that thnx????

Brokerage is same for LONG or SHORT orders.
I never faced margin problems when I was LONG.
When I was SHORT and market was rising ,when I tried to squareoff I used to get message that "You don't have required margin to buy".So whenever you have short position ,do not be TIGHT on margins.

ravalsb · #27 5th August 2008, 01:54 AM

Quote:

Originally Posted by columbus

Dear ravalsb,

I stand CORRECTED.Perhaps this messages for vinodji may help you.
".......Hi Vinod, sorry to interrupt. Would like to add here for the sake of clarity that OTM options would not be settled and will be valued zero on settlement...."

I am sorry Columbus. Dont know where is the disconnect? Anyways... i reiterate...OTM options will lapse/expire and ITM/ATM will be exercised/settled....is there anything that i have got it wrong?

Regards

The Following User Says Thank You to columbus For This Useful Post:
praveen taneja (3rd August 2008)