Recently i have bought 2 lots of nifty futures and hedged with 2 lots of put.
but the problem is when my P&L is positive with >9K(yesterday) it has not been added to the unrealised profit section. And when the day before yesterday i was having NET P&L in -412 but Future were having a loss of -2.5K, that has been added to unrealised profit and margin were increased. (This itself is weird, if you do profit it will not be added, and when we have MTM loss only in futures it will added in your account and margin will be increased, what a conning it is.)??
Now Today is the weirdest of all.
see the two screenshot below and answer what the heck is going on in here ??
No issue here, my colleague will explain in detail in a bit.
Just in brief.
We don’t add unrealized profits but unrealized losses will be deducted during the day for futures, that is normal because one can use profits to take new position and after that position may again come down during the day.
Also unrealized profit in funds page is calculated from previous close, that is not deducted from your account but just a representation.
Dude.You can clearly see my margin utilised in previous screenshot.It is 81928.Now I am adding one of your own margin calculator detail which states i only need 55782.So clearly the difference which is 81928-55782=26146 (leave 3603 which i made a loss).So 26146-3603=22543 is my extra margin utilised.
It is not just a representation.It is actually being deducted from my total margin.Kindly look into the matter before saying it as just a “REPRESENTATION”.
Moreover If i remove my funds and keep only 55k+ loss of my future, can you guarantee that i will not get a margin call or my positions will not be squared off automatically due to low margin???
Sorry, I mean what kite shows is from buy avg price but for futures daily m2m will be there so today loss will be from yesterday close, can check this article to know how it works. I should have used different word instead representation.
Siva with the ongoing Lockdown in SA & Internation flight BAN we are stuck in South Africa. Any sort of internet call can work such as whats app etc…
Thanks for the clarification.As I can clearly remember yesterday my future was giving a profit of 19k though it never reflected in my funds as unrealised profit.It did not bother me yesterday as I had sufficient funds.As unrealised profit is added to margin required, will i get a margin call if my fund is deficit of 19k which was my previous day unrealised profit???Need a little clarification on this…
A whatsapp call on the matter will be very helpful.My whatsapp number is same as my contact detail on the account opening form. @siva-reddy@nithin@Bhuvan
You managed to go through the link I have given on how futures obligation is calculated? that explains in detail. Also as you have puts it is hedged portfolio to an extent. Wassap call may not be possible but let me know if you still have doubts.
Actually I did go through the link you sent me and I must say I saw huge discrepancy.In your link let me quote “If you have taken a futures trade and not closed it during the day - The difference between your trade price and the closing settlement price will be settled to your account.” IT WAS NOT SETTLED IN MY ACCOUNT.Had it been settled my margin would have increased yesterday by 19k and today when my unrealised profit showed 22k, my actual utilised margin would have been (yesterday’s margin+19k-22k) which would have been logical as it would be equal to my original margin plus net future loss.You did give an example in your link but i would have appreciated if i could have got the same example in real life…
Anyways on a different note, I do have another query.I have hedged position of future and put(10000).If I buy 9500 pe of equal amount as my future and closes my 10000 pe. Can I get margin benefit quickly so that I don’t get a margin call or should i put enough fund treating my future as naked position? @siva-reddy@nithin
Can check this link. Also futures will have daily marking to market, means pnl will be adjusted based on yesterday close to todays close, you can check yesterday future close price and minus todays close price and multiply by quantity.
(10118.7 - 9686)*150 = 33k, the same is showing in unrealised profit.
You will get benefit but not equal to 10000 put, you can check benefit here.
Unlisted because this is not a support forum, for any doubt people may land here and post their queries.This forum is for general education, one can create ticket here for any support.
I hope you got this time, I tried my level best but still if you feel your query is not answered properly then let me know, I will ask some expert from our team to answer.
Everyone who trades futures are aware of this,that’s how it works with any broker/exchange, anyhow maybe I din’t explained it in a better way, will ask someone from my team to reply you.
The P&L on Kite is calculated on the Buy average of the trade when you entered the position, while your futures positions are marked to market(MTM) on a daily basis. Hence, your account is credited or debited on a daily basis based on the profits or losses from the previous day. The settlement process is explained by Nithin in this post and on Varsity here.
Since you had an MTM profit yesterday for the futures trade, this was added to your account yesterday. Please check your Console Ledger or your contract note and your account balance for today included this.
Intraday unrealized losses are adjusted from your account balances in real-time on Kite, however, intraday gains are settled on an EOD basis. This is the common industry practice to ensure the broker’s risk is minimal.
The options position, on the other hand, is not MTM settled by the exchange and can only be realized when the position is squared off or expires.
As soon as the 9500 CE position is created, the margin benefit is updated on Kite on an immediately. You can close the 10000 CE after and there won’t be a margin call.
