Hi experts …im a beginner.
I bought banknifty 30300 pe at premium of 280 on 24th December Thursday…at last moment my profit in it was 200 rs…but on next day when I saw my mtm was showing -7500 what is the reason rather my total premium was 6000 and rest is deducted from my account balance pls help
I have attached the screenshot .pls help
MTM (Marked to Market) is nothing but your daily P&L compared to previous closing price. As markets moved higher on 24th December, your 30300 PE was in loss of around 311 points (311 * 25 = Rs. 7,775 loss for the day).
Also, the Option you bought had increased in value after you bought, so the 7,775 loss is essentially you giving away your profit. Though you are still in minor profit of Rs. 186 as you bought this at 280 and CMP is around 286.
You can learn more about MTM in detail on Varsity:
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bro… you bought it at 280 and this option closed around 600 on wednesday at this time you would have been in profit of around 8000… so on 24th this option value fell by over 300 points and you made loss of around 7800… simple.