Day Trading Stocks & Futures

[vivektrader]

Futures contracts dont react like underlying with ex and record date.
Futures (mkt participants) can discount the rate even before dividend is declared in anticipation so in this case all the discounting would've already been priced in.

''it wont matter"- if u see all forward contracts up to March, they're all at 20pt premium intervals.

surprise/unexpected dividend declaration usually jerks FUT pricing.

But the underlying value will come down by 75 on Monday isnt it? So what should one do with future position which is in Profit currently?

 

[travi]

But the underlying value will come down by 75 on Monday isnt it? So what should one do with future position which is in Profit currently?

you trade as you usually do.
If Mon is a bull day, it might gap-up 3%, yes ? so then that inr.75 adjustment isn't visible anyway.
If its a bad day, it might gap-down 5%

The sum of all dividends affects NF/BNF too, so overtime its not worth breaking our head. its as-if mkt has discovered fair price and just carry on.

 

[mohan.sic]

TCS has announced a dividend of Rs 75 per share and ex dividend date is Monday. At todays close TCS Jan future is trading at a premium of Rs20. My question is what will happen to the Futures price on Monday, will that also be adjusted down by 75? Hence is it prudent to close Futures long position tomorrow or it wont matter?

Yes OfCourse if spot falls its future also falls.

But 75 is very high amount and this should be extraordinary/special dividend (please verify) where futures mtm will be calculated by adjusting its cost to extent of dividend so your cost price should come down. In case of options -strikes will be adjusted.

But anyway since you have a position please talk to your broker (their risk team will give you exact info)

 

[Romeo1998]

now money can be stoled if we is receive call from stranger
yes, stranger have a danger
no otp, nothing, just answer call n they is stoled money
very new technology
i feels i must not has bank account an only
all must a remained safety
https://timesofindia.indiatimes.com...ith-just-blank-calls/articleshow/96155811.cms
i feels the best defense is to use a basic phone of rs 700 which does not has an internet, something like samsung guru phone, n use that number for getting otp's from main bank account n aadhaar, etc n that number must not be used anywhere else, n use a 2nd number n a second bank account with minimum balance to use with gpay, paytm, online shopping and for all social media, etc n that must be in android phone which have internet... so even if thief tried to stole anything, he will not be able to stealed big amount, only small amount will be stoled as he will gets access to secondary small bank account which have very less balance i feels this r best defense against this type of fraud also autoblock all call from all number which not in your contacts

 

[timepass]

now money can be stoled if we is receive call from stranger
yes, stranger have a danger
no otp, nothing, just answer call n they is stoled money
very new technology
i feels i must not has bank account an only
all must a remained safety
https://timesofindia.indiatimes.com...ith-just-blank-calls/articleshow/96155811.cms
i feels the best defense is to use a basic phone of rs 700 which does not has an internet, something like samsung guru phone, n use that number for getting otp's from main bank account n aadhaar, etc n that number must not be used anywhere else, n use a 2nd number n a second bank account with minimum balance to use with gpay, paytm, online shopping and for all social media, etc n that must be in android phone which have internet... so even if thief tried to stole anything, he will not be able to stealed big amount, only small amount will be stoled as he will gets access to secondary small bank account which have very less balance i feels this r best defense against this type of fraud also autoblock all call from all number which not in your contacts
View attachment 48722

scary !!

 

[mohan.sic]

can somebody tell me after how much period a stock (non future) gets free from limited 5%, 10% upper circuit? When can the stock resume higher movements than 5%,10% limits ?. I cant find rules regarding circuits anywhere for nse.

stocks are put to circuit limits due to reasons like unusual activity be it of any kind. I guess these are decisions taken by exchange surveillance and things like how much % it has to be put in or when to release it ....all depends on subjectivity. Yes small stocks which are prone to easy manipulation will have low circuits like 2 or 5 % than big stocks which are less prone to manipulation. But when they will be released off the circuits mostly depends on activity during the circuit period, if the volt cooled off or no, and basically absence of unusual activity which triggered the stock to be placed into circuit limits. May be that's why you are not able to find any standard rules on when stocks will be moved out of circuit breakers.

 

[lakers]

...............But when they will be released off the circuits mostly depends on activity during the circuit period, if the volt cooled off or no, and basically absence of unusual activity which triggered the stock to be placed into circuit limits. May be that's why you are not able to find any standard rules on when stocks will be moved out of circuit breakers.

I searched whole nse site and found nothing.
anyways , thanks for clarifying

 

[vivektrader]

TCS has announced a dividend of Rs 75 per share and ex dividend date is Monday. At todays close TCS Jan future is trading at a premium of Rs20. My question is what will happen to the Futures price on Monday, will that also be adjusted down by 75? Hence is it prudent to close Futures long position tomorrow or it wont matter?

 

[travi]

View attachment 48723

from DL, its up 75pts
kar liya adjust ( not to be taken literally )

 

[mohan.sic]

View attachment 48723

Exactly. In normal dividend scenario underlying wil come down and future will follow which is negative for future position holder. But in case in special dividend it may not be negative to future holder as the cost price if future will be reduced to the extent of special divided.

But what I see in that Angel website description from the image I am not sure if 5% on market price is correct. Because usually it used to be some percent on face value not market value.
But I don't know if there is any change in rules.
Also if 5 % on market value then current tcs cant be special dividend.