Currency trading daily P&L

F&O
1

I recently started with currency trading on Kite and holding a position for a month. I had a few questions:

  1. At the end of trading hours, I see some profit or loss. Does this mean that at the end of a trading day I sm getting daily profit or loss? Or is there some cumulative total happening in the background?
  2. The profit and loss numbers change early next morning, before the trading starts. What does that mean?
  3. If there is a daily profit and loss for the position, are there any charges/taxes applied on it?
  4. The currency contract note received at the end of the day is for overall position or what I would get or lose on that particular day?
  5. Finally, will the P&L report for the complete duration of the position show me exact and net total profit and loss?
2
  1. end of the day, you might see LTP which is different from settlement price which is used for mark to market.
  2. every trading day, at morning close would be updated to keep platform ready for trading session. hence, you might see the mismatch.
  3. Mark to market settlement done on daily basis for future contracts. No charges.
  4. contract notes are generated for the same day orders, It will not be respective to overall position. Not related to profit/loss, it gives you the information about the same day orders and the amount which would be credited/debited.
  5. Depends, kite shows net profit/loss.
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3

Thanks for responding with all those details.
I had another question related to currency trading. How is the daily profit/loss calculated? For example, I hold a position of USDINR where average is say 71.00. As I hold the position for several days, what logic runs to calculate the daily profit/loss?

4

The difference between the previous day’s close and today’s close is considered as the market to market for future contracts. This is basic in derivatives, you may go through the respective chapters in varsity to have required knowledge in derivatives.

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