How are Future Contracts Settled

F&O
1

Hello forum members,

Mark-to-Market (MTM) settlement for BankNifty futures is similar to other futures contracts. Each day, the gain or loss is calculated based on the difference between the futures contract price and the prevailing market price.

For example, if I buy a State Bank of India (SBI) future at 800 and at the end of the day the future price decreases by 50, my today loss would be the lot size multiplied by 50.

so my questions about whether this process is the same for BankNifty futures, please let me know!
@ShubhS9 @meher_smaran

2

Hi @deepakjain05

That’s right. your understanding is correct.

Do check out the Varsity chapter on Futures contracts and the concept of MTM to get a deeper understanding of the subject.

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3

the process is also the same for BankNifty futures,

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4

Yes sir

5

Thanks

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6

it is also for the same bank nifty options

7

Options aren’t market-to-market, only futures are. Any profit or loss from your options positions, you will realize on my once you square off the position or the contract has expired.

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