I bought a stock futures at price of say 1000 rupees having lot size of 500.
I had 5L margin in my account as Collateral from my liquid funds. From this 5L, margin required for my long futures was around 2L which is now blocked and so I have remaining 3L available margin in my account from liquid collateral.
My question are,
- If on expiry day, stock spot price falls to 900, I will be in loss of around 50K from my futures position. Here hope I can take my futures position till expiry day with 3L available as margin as it can meet up the twice the margin requirement before 2 days of expiry. Is my understanding correct ?
- With cash component of 5L in my account, If my initial margin for long futures is around 2L and if I have loss of around 1.5L in my futures, now total available margin left in my account would be 1.5L (5-2-1.5). Is this understanding correct ? And here on 2 days before expiry, my margin requirement doubles, so then margin requirement would become 4L and loss of around 1.5L, so total margin block would be around 5.5L, but I had 5L only in my account. Will I have interest charged in this case ? Is my understanding correct in this scenario as initially thought i would take delivery of my futures into stocks and so i need 1000*500 = 5L max as margin to meet any situation out of my future position.
- If I do let my futures expire, Will system automatically unpledge and sell my liquid fund to get me delivery of stock at the price of 1000 with size of 500 shares ? Or Do I need to unpledge and sell my liquid fund to meet delivery obligation ?