Bank Nifty option closing Price

#1
Hello,

I bought Bank Nifty option contract on 30/04/2019, 2 lots 29200 PE @ 4.90 expiring on 02/05/2019 for a total of Rs 196. This morning when market opened up. I see the P&L of over Rs 700 (I closed it later with a loss of Rs 725). Could you please explain the logic behind it. I took the said position with a pre-determined loss of Rs 196 (premium paid to buy 2 contract). I called up broker support team and they said it is the closing or settlement price at the EOD. I have not understood the working behind it. Could someone please explain? Thanks in Advance
 

traderhardrock

Well-Known Member
#2
how come, you suffered a loss of more than 196 (excluding charges and taxes), in this trade.
who is your broker and what is brokerage

BTW, closing or settlement price for BN is 29708.6
 
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#3
This happened with Fyers broker.
Last night, margin statement and the contract note I have received is correct. It reflects the accurate figure. When I had live trade yesterday, my P&L showed incorrect figures. I have again raised a query to understand the glitch with the system.
 

amrutham

Well-Known Member
#4
This happened with Fyers broker.
Last night, margin statement and the contract note I have received is correct. It reflects the accurate figure. When I had live trade yesterday, my P&L showed incorrect figures. I have again raised a query to understand the glitch with the system.
I think its not a glitch in the system.
Some times when there is a huge movement in last 30 minutes, the LTP price of the contract can be different
from closing or settlement price.This is because, closing price is calculated based the weighted average of last 30 minute prices.


Yesterday morning what ever loss it has showing ( Rs 700), was MTM calculated based on the previous day closing price/settlement price.

Lets say, Tuesday night the closing price for 29200 PE was 20 and on Thursday morning it opened at 2, then your MTM loss is more than 700. But your actual loss will be less.
 

mohan.sic

Well-Known Member
#6
Hello,

I bought Bank Nifty option contract on 30/04/2019, 2 lots 29200 PE @ 4.90 expiring on 02/05/2019 for a total of Rs 196. This morning when market opened up. I see the P&L of over Rs 700 (I closed it later with a loss of Rs 725). Could you please explain the logic behind it. I took the said position with a pre-determined loss of Rs 196 (premium paid to buy 2 contract). I called up broker support team and they said it is the closing or settlement price at the EOD. I have not understood the working behind it. Could someone please explain? Thanks in Advance
what is P&L of over 700 mean ?? Say it profit of 700 or loss of 700.
when you purchased at 196 how can it be loss of 700 ? so it should be profit.
But it can neither be profit or loss as per ltp of 5.55 or close of 6.35. on the day of your purchase.

Either you saw it wrong or pls check what is happening in your ac.
 
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#7
As mentioned by @amrutham, exactly the same situation happened. Average price caused the MTM to be shown incorrectly but original contract stayed the same. Thank you everyone for replying.
 

mohan.sic

Well-Known Member
#8
As mentioned by @amrutham, exactly the same situation happened. Average price caused the MTM to be shown incorrectly but original contract stayed the same. Thank you everyone for replying.
No that's wrong. Pls check the given close price. How can you be at such profit with that close price.
 

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