Will I able to rollover even if my loss made in future is more than margin required amount? Eg. Today I place Buy order of RCOM future at Rs.105 (2000 /lot) which require 30k Margin for Positional Holding . Consider at the time of expiry day RCOM trading around Rs. 80. In this case my loss is 50k which is more than margin i have. But i expect this stock may go above 110 in next expiry. Did i allowed to rollover and what is the cost incurred?
Rollover means selling the current series (month) future and buying the next series (month) future. So when you sell the current future, your position will be squared off. So whatever profit / loss made will be reflected in your a/c and you will be able to buy your future based on the balance/money that is in your a/c.
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Arun, if margin required is 30k and if your account balance reduces to the SPAN margin, (which is around 17k), your RCOM position will get auto squared off by our risk team. So yeah, there would be a chance that you can lose 80k with just 30k in your account.
Assuming you have transferred more money or if the money in your account is more than 30k, all you have to do is square off this month contract and buy the next month. That is basically what a rollover is, when you do this there are two trades that you take, and hence that is the cost. Also there might be a difference in price of current month futures and the next, this difference will also be a rollover cost if you have a long position.