NISM Certifications · NISM-Series-VIII: Equity Derivatives · Introduction to Forwards and Futures
A trader buys 2 lots of Nifty futures (lot size 75) at 24,000. At the day's close the settlement price is 24,100. Next day, the trader squares off at 24,060. What is the total profit for the trader across both days?
Total profit is the net price move times quantity: (24,060 − 24,000) × 150 = Rs 9,000. Day one MTM gain of Rs 15,000 is partly reversed by a Rs 6,000 loss on day two, netting Rs 9,000.
- ARs 9,000Correct
- BRs 15,000
- CRs 3,000
- DRs 6,000
Explanation
Total points gained = 24,060 − 24,000 = 60. Quantity = 2 × 75 = 150. Profit = 60 × 150 = Rs 9,000. Day 1 MTM is +15,000 and day 2 is −6,000, totalling 9,000. Rs 15,000 ignores the second-day loss.
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