NISM Certifications · NISM-Series-VIII: Equity Derivatives · Sales Practices and Investors Protection Services
A client with Rs 5,00,000 of margin deposit buys 2 lots of stock futures (lot size 500) at Rs 800. The day's settlement price is Rs 788. What is the client's MTM position for the day?
The client has an MTM loss of Rs 12,000. The long futures position fell by Rs 12 per share across 1,000 shares (2 lots of 500), so the loss is debited from the client's account at day end.
- ALoss of Rs 12,000Correct
- BProfit of Rs 12,000
- CLoss of Rs 6,000
- DLoss of Rs 24,000
Explanation
Price fall = 800 - 788 = 12. Quantity = 2 x 500 = 1,000. Loss = 12 x 1,000 = Rs 12,000, which is debited from the long client. Rs 6,000 uses only one lot.
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