When does F&O gains are settled in Indian market

F&O
1

I am interested in 3 particular cases:

  1. M2M gain in Futures

  2. Gain from exiting a futures contract

  3. Gain from exiting an options contract.

I have these questions.

  1. When those gains are available to trade again in F&O.

  2. When are they withdrawable?

  3. If there is a settlement holiday the next day, does it affect the first 2 questions?

Notes:

  1. If it’s exchange specific, NSE is what I am talking about right now.

  2. If it’s broker specific, you can give a generic answer, best if it’s applicable to Zerodha.

2

The settlement cycle for derivatives is T+1 day. In all the above scenarios, any gains / credits will be settled on T+1 day.

Margins released from squaring-off your Futures position or Short Option position can be used immediately to take other positions.

However, premium received from selling options can only be used to buy options on T-Day, you’ll be able to use for all other purposes from T+1 day.

Intraday profit will be available for trading on T+1 day when it is settled. Also, MTM profits from your futures position will be available for trading from the next day.

On T+1 day. You can check out this article for more information.

Yes, if T+1 day is a settlement holiday, the credits which you are to receive on T+1 day will be settled on the next working day.

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3

Thank you very much @ShubhS9 for a very clear and detailed answer. Very much appreciated.

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