What is Mark to Market Profit/loss in Stock Futures ? How is It Calculated by the Stock Exchange?

I trade in futures segment of stock.When I buy a lot of a stock & sell it the contract note for each buy & sell shows mark to market loss or profit which is totally different as per the difference in amount of buy & sell ? What is it & how is it calculated? pl.describe in detail.

Suggestion:

for the pending net trades of buy/sell, after day end ,closing rates are fixed and calculated the profit and loss amount .
this is called mark to market profit/loss and credited/debited to account holder.

{ 1 comment… read it below or add one }

E.g., your margin is 50000, you have bought at 1 lot of 1000 shares of x stock at 100 and today's closing price is 105- your account shows a profit of 5000.(55000).

Suppose tomorrow, the closing price is 99, your account would be -6000 from 55000- =49000.
But actually your loss is -1000 only. Hope this is clear.

(Meanwhile, avoid futures trading.)
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