Futures Query

#1
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

Active Member
#2
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.
 
#4
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

Well-Known Member
#5
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.
 
#6
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.
 
#8
.... 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

Active Member
#9
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.:)
 

Similar threads