NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
Nifty futures have a lot size of 75. A trader buys 2 lots at Rs 24,000. The daily settlement price that day is Rs 24,060. What is the MTM gain credited to the trader's account for the day?
The MTM gain is Rs 9,000. The trader holds 150 units (2 lots of 75), and the settlement price is Rs 60 above the purchase price, so the gain is 150 multiplied by 60, which gives Rs 9,000.
- ARs 4,500
- BRs 9,000Correct
- CRs 18,000
- DRs 12,000
Explanation
Quantity = 2 x 75 = 150 units. Gain per unit = 24,060 - 24,000 = 60. MTM = 150 x 60 = Rs 9,000. Rs 4,500 results from using only one lot.
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