Confused in commodity

#1
HOW UNDERSTAND COMMODITY BILL SUMMARY ?
WHAT MEAN :
NET AMOUNT DUE TO US
M2M P/L
B.E. PRICE
NOTIONAL P/L
WT. AVG. PRICE
P/L @ WT. AVG. PRICE
PLS EXPLAIN WITH EXAMPLES:confused:
 

Tamil trader

Well-Known Member
#2
HOW UNDERSTAND COMMODITY BILL SUMMARY ?
WHAT MEAN :
NET AMOUNT DUE TO US
M2M P/L
B.E. PRICE
NOTIONAL P/L
WT. AVG. PRICE
P/L @ WT. AVG. PRICE
PLS EXPLAIN WITH EXAMPLES:confused:

Net Amount due to us = means .... You have made a loss and are going to pay to your broker

Net Amount due to you= means... You have made a profit and are going to receive from your broker
 
#3
Thax a lot t.t. But how :
Calculate m2m p/l
describe weight average price
break even point
p/l @ wt. Avg. Price

when i sq. Off a contract then my p/l calculated on m2m or wt. Avg. Pr.
In simple words how i calculate p/l when i sq. Off a contract ?
 
#4
Why , net amount due to you : -2500
net amount due to us : 2500
why in bill summary when i m in profit '' - '' sign added before profit amount ?
 

Mr.G

Well-Known Member
#5
It is an accounting term, net amount due to you is negative as you are giving money from your account. net amount due to us * is positive as money is coming into the broker's account.
 
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#6
net amount due to you is negative as you are giving money from your account. It is positive as money is coming into the broker's account.
I THINK YOU WROTE THE SECOND LINE WRONG BY MISTAKE .PROBLY IT SHOULD BE :It is positive as money is coming FROM the broker's account.
 

Mr.G

Well-Known Member
#8
but when NET AMOUNT DUE TO US is positive ( 2500 or +2500 ) , what meaning of that ?
That means that money is going to the broker from you.
 
#9
Also you will have to maintain a margin if you want to keep your commodities as investment. So if you suffer M2M losses, you will have to put more money to maintain your postion. So always keep some extra money in your account for M2M losses.:thumb:
 

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