Who pays the losses !!!
Dear friends, I have a very big doubt in my mind.
When we buy some shares at 100 rupees and sell that at 120 rupees, the person who is buying pays 120 and we get 20 rupees profit. So the buyer pays our profit.
When we sell the same share at 80 rupees, we loose 20 rupees. when the buyer pays 80 for the selling that we made, he gets same share at lower price. first question where did this 20 rupees loss goes ???
In the futurs market, When i buy SAIL share at 100 rupees, lot size 10, which is 1000 rupees. I pay a margin of 200 rupees. Lets us assume the SAIL share closed at 90 rupees, I will pay 10 * 10 = 100 rupees at EOD settlment.
question 1. who will get 100 rupees loss that i paid to exchange.
assume SAIL closes at 110 and i get 10 as profit........ question 2. who will pay that 10 rupees to me.
Thanks
Market_looser
Dear friends, I have a very big doubt in my mind.
When we buy some shares at 100 rupees and sell that at 120 rupees, the person who is buying pays 120 and we get 20 rupees profit. So the buyer pays our profit.
When we sell the same share at 80 rupees, we loose 20 rupees. when the buyer pays 80 for the selling that we made, he gets same share at lower price. first question where did this 20 rupees loss goes ???
In the futurs market, When i buy SAIL share at 100 rupees, lot size 10, which is 1000 rupees. I pay a margin of 200 rupees. Lets us assume the SAIL share closed at 90 rupees, I will pay 10 * 10 = 100 rupees at EOD settlment.
question 1. who will get 100 rupees loss that i paid to exchange.
assume SAIL closes at 110 and i get 10 as profit........ question 2. who will pay that 10 rupees to me.
Thanks
Market_looser