Query on CNC, AMO, and Index Options

General
1

Hi,

Query–1

Under the supposition that I had booked a Cash- N-Carry (Delivery) Trade today of some MNC at 100 price with 10 shares. (Value=1000) and the shares are to be delivered on T+2. Assume, the share value is decreasing today and End of Day it was 900. (100 Loss)

Assume I had also booked Index Option trades and made some profit.

Will the CNC trade loss for today be deducted from the Index profit I had made today (I had squared off the Index profit trades), it won’t be right since? (since I didn’t square off the CNC trade and its delivery and its always susceptible to change until I square off).

Can anyone throw some light on this? Is my understanding correct?

Query–2

For an After the Market Order in Kite mobile, I had observed if I place an AMO order and if the order gets executed or not (that is I cancel it), when I next place a Market or Limit order, the “screen is always saved to the AMO order type (my previous order)”, is this always so?

The default selection is market order in Kite right? or is it the toggled to the previous order and attribute selection made by the user?

Thanks and Regards

2

Until you are holding any position, any profit or loss you will be making unrealised, so if you are making a loss it won’t be deducted, it will only be deducted once you square-off your position.

The toggle will take last order preference by default for the session.

3

Thanks sir.

So the loss I had made on any CNC trade for today won’t be deducted from the profit from the Index option trade for today, so my understanding is right?

If I square off the CNC trade today, then it would be considered as Intra-day and the loss will be deducted from the profit made from the Index option trade?

4

Yes, right.

The loss will be deducted from your available balance, any Intraday profit you make in F&O is credited to your account the next day.

5

Thanks sir.

With response to the second aspect.

Assume I had made a profit of 5k (all Index options squared off) and loss of 2k on CNC (not squared off).

My profit today is–> 5k (leaving tax, charges, brokerage etc)

In essence since the price of the share is dynamic, any profit/lose I had made on the delivery trade will be carried forward until I square them off and they won’t be added to any profit or loss I had made from other profit/loss trades,right?

Case-02

Supposition:

Assuming I had squared the CNC trade and it became intra-day MIS with loss of 2k and Index Option profit of 5k, then total net profit is 3k, right?

This 3k is devoid of brokerage and other charges.

Thanks.

6

Right.

Yes, your Net P&L will be 3k (minus brokerage and other charges).

7

Thanks sir, you are truly outstanding.

8

I have another query:

After booking an Index Option and carrying it forward for 10 days (assume), End of the Month expiry option, the option fluctuates between profit and loss depending on the premium. (and our lot size)

This profit/loss won’t be deducted or added to our main position right until we square off the contract, right?

Thanks sir.

9

Until you square-off your position, any profit or loss you will be making is unrealised. This will be credited / debited only when you square-off your position.

10

Thanks sir. Are Bank Nifty contracts available for 29th October 2020 (weekly expiry) or it’s constituted as a Monthly expiry contract?

11

It is constituted as Monthly Expiry contract.

12

But, the last Thursday of the week is also an expiry day for that week’s contract and it coincides with the day (expiry) of the Monthly contract?

13

Though, that Thursday is the normal expiry day for weekly contacts…as it is the last Thursday of the month so it is a monthly contact expiry…
Because all the other stocks contracts will expire at the last Thursday day of the month…

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