what is marked to market?
This query is : Resolved
31 January 2009
Dear Experts, please help me solve this problem :
"yesterday MR.X sold six months futures on BSE stock index of 3700. today the BSE sensex closed at 3860 and BSE stock index future closed at 3720. MR.X gets a call from his broker, who reminds him that his futures positition is marked to market each day. is the broker asking MR.X to pay the money or is he about to offer to pay MR.X"
Thank you.
"yesterday MR.X sold six months futures on BSE stock index of 3700. today the BSE sensex closed at 3860 and BSE stock index future closed at 3720. MR.X gets a call from his broker, who reminds him that his futures positition is marked to market each day. is the broker asking MR.X to pay the money or is he about to offer to pay MR.X"
Thank you.
01 February 2009
Normally future positions are market to market- i.e. if the market falls, you have to give additional marging to cover your notional losses. So, say you brought 1000 units future at 100 Rs. At the time of buying, you have to give some margin. However, if the price falls to 95, you have to give additional marging of 5000/-, your notional losses.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- GST ON DAMAGED GOODS
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
