Futures Query

arunvc_2004 · #1 11th April 2007, 12:16 AM

experts here please help me,i like to know about futures,your help will be very thankful

For ex

If i buy 1 lot(100shares) of a 10 rs share say at (10*100)1000 rs and the next day the shares moves up by 10 rs so at the end of the day my profit is
10*100=1000

and day 2 share falls by 15
so 15*100=-1500

so are these amounts(profits and loses debited from my account at the end of the day itself in my account im using icici direct acount .

and what happens at the end of contract expiration on last Thursday
what ever is the price of the stock lets say in this case say 12
so 12*100=1200 will be credited in my account.???

please help me.

vince · #2 11th April 2007, 05:19 PM

Whatever the day, the difference between the previous days close and current days close will be debited/credited to your account.

If you do not rollover your position on expiry your margin will be released.

sunilnanjappa · #3 12th April 2007, 10:46 AM

indian commodities market is totally futures market, u can try in commodities to known about futures and also international markets..

arthikalyan@yahoo.com · #4 16th April 2007, 09:10 PM

if nifty futures trade to discount to spot, can we presume that futures overbought. Similarly, if nifty futures trade at premium to spot, is it in oversold position. can any senior boarder clarify this?

musicjunkie · #5 16th April 2007, 10:25 PM

Hello arun, if u have a look at futures scree nthen u will see initial and minimum margin, 25% and 16% respectively most of the time. At the end of the day your position will be debited or credited from your intial market position, once it reaches the minimum value you will automatically be sold out. This is called Market to market.

ivanboesky · #6 28th April 2007, 09:18 AM

Quote:

Originally Posted by arthikalyan@**********

if nifty futures trade to discount to spot, can we presume that futures overbought. Similarly, if nifty futures trade at premium to spot, is it in oversold position. can any senior boarder clarify this?

There are many reasons why futures quote at a discount to spot. Normally, futures should quote at a premium. The primary reasons for futures quoting at a discount to spot are: dividend yield higher than the risk free rate, excessive hedging, leveraged speculation that the stock will fall.

bhoplenitin · #7 28th April 2007, 03:20 PM

when is the right time to buy futures ? hwen it is trading at discount or premum

ivanboesky · #8 28th April 2007, 05:43 PM

.... when you think the market is going to go up, of course!! Unless you are an arbitrageur, premium or discount does not matter much. You can try that out empirically to find out whether its best to buy futures at a premium or discount.

vince · #9 28th April 2007, 06:40 PM

Bhoplenitin ,The right time would be when you are on the right side of the market.

Doesn't matter whether its at discount or premium.

Hey Ivan , long time no see.

ivanboesky · #10 28th April 2007, 08:28 PM

Yup Vince, been busy with too many things at one time.... so taking some time off from here!

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