Unrealistic and Margin Value in Hedged Index Futures

[MohammedFaisal]

Hi @shabbirhasan and @Sadia_samar,

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.

@Sadia_samar

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.

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.

@Sadia_samar

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?

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.