what is marked to market?
This query is : Resolved
LATHA RAMESH
(Querist)
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.
Rajesh Kumar
(Expert)
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
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- GSTR9 Annual Return
- Employee secondment
- Ito add credit side of bank
- Applicability of tax on invoice
- Rectification under processing even after 6 months cpc portal
- Form 144 TDS Return Validation error
- GST ITC as per notification 12/2023- central tax
- Import of Capital Machine
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
