How can one deal with loss of Opportunity cost while trading futures?
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Prayag
August 9, 2020, 3:59am
2
The IndusStox 3-in-1 account might be useful in your case . @iTrader likely has more knowledge about this. Refer to this thread -
@iTrader , can you help me with a query please? I am also contemplating moving a part of my trading capital to upstox, as I believe i am loosing some serious interest money (3~6%) when I keep my funds idle in Zerodha trading account (for a better trading opportunity)
In the 3-in-1 account of IndusStox, how does the MTM work for futures?
eg.
if I start with 10 Lakhs in IndusInd savings account,
and then do a smart transfer of 8 lakh into Upstox trading account,
and then buy 1 nifty lot (75 units) at (say) 11000 price with some margin (assume Rs 1 Lakh) and hold it overnight, with closing price of 10800 (this a MTM loss of Rs 15K)
how does my end of the day balance at my IndusInd bank account (the part that earns interest) showup as
Thanks in advance
@bshubhranshu so far I have not held overnight position only Intraday, so this is what happens in that.
Upon Smart Transfer, Bank A/c will show the transferred funds in a separate line, trading A/c shows funds as available.
At the end of the day (I guess somewhere during midnight) the funds which are not used for trading gets reversed back i.e. Trading A/c shows zero (if we have made any profit, the profit remains in Trading A/c. We need to transfer this profit manually to bank if required), the separate line in Bank A/c is removed & becomes a consolidated single line balance. The next trading day, we need to do Smart Transfer again to have money in Trading A/c
In the case which you mention, I believe the logical thing which would happen is:
Hope the above was helpful in someway.
( Edit : The Smart Transfer is not available for Commodity Segment as of now. Don’t know if this will be added for Commodity Segment or not)
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