The investor will have to bear the difference in prices between the near month contract and the next/far month contract along with brokerage and transaction costs on both legs of the transaction.
In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Trades in the rolling settlement are settled on a T+2 basis i.e. on the 2nd working ...
Average cost arises when you trade in the same scrip multiple times. It is the cost that helps you determine the overall average price of the Buy and Sell on trading multiple times in a particular scrip. Let's take an example; you had bought a share ...
While squaring off your hedge position you are required to close the Sell order first of the option before squaring off the Buy order. If you square-off the Buy order first, the margin required increases for your Sell order as it is now the naked ...
While squaring off your hedge position you are required to close the Sell order first of the option before squaring off the Buy order. If you square-off the Buy order first, the margin required increases for your Sell order as it is now the naked ...
In case your Intraday Equity short position is not squared off due to the absence of buyers or failed due to any reasons. This will be considered as short delivery, which means the seller of the shares has defaulted on the settlement of shares hence ...