F&O contract able to convert CNC

rp3730 · April 17, 2018, 2:26pm

Hello any one can advise
I have brought F&O contract shall I able to convert this to Normal CNC.

goldb · April 18, 2018, 7:05am

i m not getting in what way you are asking…but…
its contract to buy or sell share …its cash settled till date…so no delivery…

rp3730 · April 21, 2018, 10:41am

Sir
For example I have brought Tata motors april future, I have lossed shall I able to convert to Normal or CNC position

Neha_Raghuraman · April 22, 2018, 4:45am

Dear @rp3730,

Looking at the way you have phrased the question, I think you are new to the stock market, especially futures trading.

Trading in futures segment is not like trading in cash segment.

In cash segment you can buy shares of Tata Motors (via CNC order type) and keep them for whatever time horizon. It can be 2 days or 2 years or 2 decades. No one will ever ask or force you to sell those shares - no matter if the stock goes from 330 to 1000 rupees or to 10 rupees.
Whereas in futures segment, what you are buying is a contract to buy shares of Tata Motors and not the shares themselves. Every futures contract has an expiry date and every contract has to be settled on or before that date. For April contract the expiry is on 26th Apr. So, on 26th of April whether you like it or not, the contract has to settled.

There is nothing like CNC order type in Futures. All you have is MIS (used for intraday trading) and NRML (normal, for carrying trades for several days, up until expiry). There is always an option to rollover the contract to next month but that is not advisable given that your understanding of futures market is not very strong yet.

I strongly advise you to study this module on Varsity to understand the concepts of futures better.

Cheers!
Neha (www.VRDNation.com)

Lakshmikanth_Jadhav · April 22, 2018, 5:31am

@daredevil, your answer is devilish

tanmay.t · April 22, 2018, 6:29am

F&O contract cannot be CNC, it can be either MIS or NRML. NRML means that you can carry it overnight till expiry. Is that what you wanted?

incognito_man · April 22, 2018, 7:45am

Are you asking can you take delivery of the stock from futures on expiry?

goldb · April 23, 2018, 7:44am

pls dont make fun of newcomers…if you cant handle stay away frm making their joke.

rp3730 · April 23, 2018, 8:25am

yes sir

daredevil · April 23, 2018, 10:48am

Sorry I did not know that a guy who buys future without knowing what is F&O is a new comer (then what else he cud be ).

Pradeep_Lalwani · August 17, 2020, 11:05am

Sorry but I just want to say that person asked a very simple question that he has bought future stock and now he is going in loss, so he is asking advice to escape from the loss and asking whether he can convert future share in to cash delivery CNC…
So just we have to say NO, he has to be till contract gets over in expiry.

Dear everybody has started from scratch and no body is born trader, if he cannot help or advice its better to be side instead of showing that we are smart traders.
I am happy that new comers ask question and with this they will learn and I also salute and praise to such personalities who guides, advice & even to those who just be side way instead of demotivating new comers.
I apologise if it hurts anybody, be in peace and always be blessed.