I have a query with regards to Futures trading and settlement.
Query-1
Is Index Futures and Bank Nifty Futures similar to Option Index, barring the high premium to get into the trade? (Leaving maybe MIS product type)
Query-2
Assuming today, I had booked a Single (lot) Futures trade with MIS attribute, will it be settled immediately within the day just like any other trade? (Squared off today and funds settlement on next day)
Query-3
Also, I see certain amount of leverage is given for MIS product for a person to get into the trade-- this is different from NRML trade, so if the margin I pay is 36k (assuming) at premium 10 (assume one lot is 300), and within the day or afternoon, the premium increases to 12, the difference is the profit which will be credited on T+1 day, right?
Query-4
Are there any physical settlement obligation for a futures trade (intraday)? or even for a normal attribute trade?
Query-5
Also, can we book a futures trade at market price? or is it like similar stock call or put option-- a limit order.
Futures are different than Options, Suggest you read this module on Varsity, which will help you understand Futures better.
Intraday trade, so your position will be squared-off, any profit you make will be available for use from next day.
No physical settlement obligation for Intraday. Physical settlement will happen only on once contract expires on last Thursday if the month, not before that.
Also, Index Futures are cash settled while Stock Futures are physically settled.
Thanks sir, so once we booked a Futures trade with NRML attribute, we can carry forward it , and we cannot exit until expiry? (Obligation of Physical settlement once we book a futures trade with NRML attribute?)
Also, does SPAN margin+ overnight margin come into play for Futures? (Buy or Sell)
Secondly, sir, if we booked a Futures trade with an MIS or a NRML attribute, and the premium increases (thereby our margin resulting in immediate profit), we can square off MIS immediately like any intraday trade.
How about the trade with the NRML attribute sir? Can we square it off too or it has any obligations to be carried forward till expiry?
I see (for instance a stock or index future one lot trade), Zerodha shows a margin at the bottom left of the kite web mobile application, this is the margin with which we enter into the trade for Futures right? (or any SPAN+ other charges are there sir)
I had put in a Bank Nifty Futures trade by buying 2 or 3 lots within the margin limit as specified by Zerodha (MIS product) – I closed the trade and exited in profit.
I did the same two three times and overall result was an exit from the futures trade with a profit.
Tomorrow this profit minus brokerage , sebi tax, etc will be real profit that will be credited into the broking account .
Are there any other hidden charges?
Query -2
Do SPAN and other charges apply to buyers of futures too? (When they want to carry forward a position)
What is the advantage of BankNifty over Bank Nifty Options?
Thanks sir, SPAN and others are for while carrying forward overnight positions right?
Why Zerodha gives leverage for futures MIS but not Options ( just a query)
If I book an MIS Intraday trade the margin that’s showed on the bottom left of the kite mobile application during the booking of the trade is enough to enter into the position and later exit the position either with a profit or loss in the day?
Sir now that I had exited the Futures position intraday,do I need to pay any extra SPAN Margin (except brokerage etc)
SPAN + Exposure is already factored into the margin amount that’s showed on zerodha mobile kite app (bottom left side) whilst entering into a Futures trade, right?