Basic Future Question

A

ajfrod

Member
#1
#1
Hello
I have a question on futures
1. When you buy or sell a future contract you pay a margin, is they any interest charged?
2. If I do an intraday trade and i make a profit when do i get it after the expire or t+3.
3. How does the settlement work
 
SavantGarde

SavantGarde

Well-Known Member
#2
#2
a) By Rule...You Do Not Pay, You Have To Have The Required Margin In Your Ledger Or Else The Trade Will Be Rejected... Ofcourse There Are Exceptions To This & Depends On The Broker.

b) If Your Own Money Is Sufficient, There Is No Interest Charged.

c) Profit Or Loss Whether You Square off Your Position Or Carry It Forward Is Settled On A Daily Basis & Same Will Be Reflected In Your F&O Ledger.

d) On Expiry Whether You Close Your Position Or Not Will Get Settled Automatically

SavantGarde

ajfrod said:
Hello
I have a question on futures
1. When you buy or sell a future contract you pay a margin, is they any interest charged?
2. If I do an intraday trade and i make a profit when do i get it after the expire or t+3.
3. How does the settlement work
Click to expand...
 
rajatheroyal

rajatheroyal

Active Member
#4
#4
But why do u want to do it? if u think u are saving brokerage then its not a good idea coz anyhow they charge brokerage on it even if u let it expire .
 
SavantGarde

SavantGarde

Well-Known Member
#5
#5
In My Experience It Is Better To Effect The Squaring Off by Putting An Order Than Letting It Happen Automatically...& Not Wait For Last 20-30 Minutes To Square Off.

@Vishal
If You Let The Index Futures Expire On Their Own They Will Be Squared Off At The Settlement Price...
Stock Futures Expire On The Underlying Settlement Price Of The Stock. .

If One Is Going To Rollover A Position...There Are Ample Opportunites Before The Actual Expiry To Be Able To Rollover With Decent Profit....Sometimes It Entails Buying The Next Month Before Squaring Off The Current Month..It All Depends On The Market & The Particular Stock Movement & When One Is Deciding To Do It.

Happy & Safer Trading

SavantGarde
 
A

ajfrod

Member
#6
#6
SavantGarde said:
a)
c) Profit Or Loss Whether You Square off Your Position Or Carry It Forward Is Settled On A Daily Basis & Same Will Be Reflected In Your F&O Ledger.

Automatically

SavantGarde
Click to expand...
Does that mean if i make a profit of Rs20000 do i get it in an day to spend or at expiry
 
SavantGarde

SavantGarde

Well-Known Member
#7
#7
Don't Twist A Simple Answer..... Like People Do With Trading Systems...

Whatever Profit / Loss Is Credited / Debited Same Day In The Evening & Same Is Reflected In Your Ledger.

Logistic Of Calling For Payout Is Entirely Between You & Your Broker.

SavantGarde


ajfrod said:
Does that mean if i make a profit of Rs20000 do i get it in an day to spend or at expiry
Click to expand...
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
mevaibhav Trade Basics in USDINR Currency Futures/Options Beginners Guide 5
R Futures basic help...please Beginners Guide 7
R please clear my Basic doubts about FUTURE TRADING Beginners Guide 0
H Future Basic Question Futures 1
A Some basic questions on Futures Futures 3

Similar threads