Seniors,
I am interested in futures trading. I have observed that the correct way of calculating MTM is not easily to be found on the internet since I am planning to go for futures trading but since i do not know the integrities of furtures trading, i thought first i will check with you whether the calculation made by me as follows is correct or MTM is calculated in some other ways. Please help me us new investors who wants to trade in futures. Also would like to know who provides NEAT so that one can get seconds to seconds update, Best Regards, PA
DATE 24TH AUGUST
NIFTY SPOT 4615
PURCHASED NIFTY_AUG
QTY PURCHASED 50
FUTURE RATE 4625
TOTAL LONG POSITION 4625 x 50 231,250.00
INITIAL MARGIN @ 12% 27750
ASSUME THAT ABOVE UNITS WILL BE SOLD ON DAY + 3 THE MARKET TO MARKET POSITION IS AS FOLLOWS:
POSITION ON DAY 1
CLOSE PRICE 4,660.95 x 50 233,047.50
LOSS/GAIN 1,797.50 233,047.50 -231,250.00
ADDITIONAL MARGIN 215.70 27,965.70 - 27,750.00
NET CASH INFLOW 1,581.80 1,797.50 -215.70
PAYMENT TO BE RECEIVED 1,581.80
VALUE OF NEW POSITION 4,658.90 x 50 232,945.00
MARGIN @ 12% 27,953.40
POSITION ON DAY 2
CLOSE PRICE 4,600.65 x 50 230,032.50
(LOSS)/GAIN 3,015.00 233,047.50 - 230,032.50
MARGIN RELEASED 361.80 27,965.70 - 27,603.90
NET CASH OUTFLOW 2,653.20 3,015.00 -361.80
PAYMENT TO BE PAID 2,653.20
VALUE OF NEW POSITION 4,658.90 x 50 232,945.00
MARGIN @ 12% 27,953.40
POSITION ON DAY 3
CLOSE PRICE 4,700.00 x 50 235,000.00
LOSS/GAIN 4,967.50 235,000.00 - 230,032.50
MARGIN RELEASED
NET CASH INFLOW
PAYMENT TO BE RECEIVED 4,967.50
NET GAIN/LOSS
DAY 1 (GAIN) 1,581.80
DAY 2 (LOSS) -2,653.20
DAY 3 (GAIN) 4,967.50
TOTAL GAIN 3,896.10
I am interested in futures trading. I have observed that the correct way of calculating MTM is not easily to be found on the internet since I am planning to go for futures trading but since i do not know the integrities of furtures trading, i thought first i will check with you whether the calculation made by me as follows is correct or MTM is calculated in some other ways. Please help me us new investors who wants to trade in futures. Also would like to know who provides NEAT so that one can get seconds to seconds update, Best Regards, PA
DATE 24TH AUGUST
NIFTY SPOT 4615
PURCHASED NIFTY_AUG
QTY PURCHASED 50
FUTURE RATE 4625
TOTAL LONG POSITION 4625 x 50 231,250.00
INITIAL MARGIN @ 12% 27750
ASSUME THAT ABOVE UNITS WILL BE SOLD ON DAY + 3 THE MARKET TO MARKET POSITION IS AS FOLLOWS:
POSITION ON DAY 1
CLOSE PRICE 4,660.95 x 50 233,047.50
LOSS/GAIN 1,797.50 233,047.50 -231,250.00
ADDITIONAL MARGIN 215.70 27,965.70 - 27,750.00
NET CASH INFLOW 1,581.80 1,797.50 -215.70
PAYMENT TO BE RECEIVED 1,581.80
VALUE OF NEW POSITION 4,658.90 x 50 232,945.00
MARGIN @ 12% 27,953.40
POSITION ON DAY 2
CLOSE PRICE 4,600.65 x 50 230,032.50
(LOSS)/GAIN 3,015.00 233,047.50 - 230,032.50
MARGIN RELEASED 361.80 27,965.70 - 27,603.90
NET CASH OUTFLOW 2,653.20 3,015.00 -361.80
PAYMENT TO BE PAID 2,653.20
VALUE OF NEW POSITION 4,658.90 x 50 232,945.00
MARGIN @ 12% 27,953.40
POSITION ON DAY 3
CLOSE PRICE 4,700.00 x 50 235,000.00
LOSS/GAIN 4,967.50 235,000.00 - 230,032.50
MARGIN RELEASED
NET CASH INFLOW
PAYMENT TO BE RECEIVED 4,967.50
NET GAIN/LOSS
DAY 1 (GAIN) 1,581.80
DAY 2 (LOSS) -2,653.20
DAY 3 (GAIN) 4,967.50
TOTAL GAIN 3,896.10
