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NISM Certifications · NISM-Series-VIII: Equity Derivatives · Introduction to Clearing and Settlement System

A trader buys 2 lots of a Nifty futures contract (lot size 75) at 24,000. The daily settlement price that day is 24,060. What is the mark-to-market amount for the day?

The long position earns a mark-to-market profit of Rs 9,000. The futures price rose by 60 points from the purchase price, and the position covers 150 units (2 lots of 75), so 60 multiplied by 150 gives Rs 9,000 credited.

  1. AProfit of Rs 9,000Correct
  2. BLoss of Rs 9,000
  3. CProfit of Rs 4,500
  4. DProfit of Rs 18,000

Explanation

Quantity = 2 x 75 = 150 units. Price rise = 24,060 - 24,000 = 60 points. MTM = 60 x 150 = Rs 9,000 profit for the long position. Rs 4,500 uses only one lot, and Rs 18,000 doubles the lot count.

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