uTrade AlgosThe settlement process for futures contracts on Share India generally follows the guidelines set by the NSE/BSE and SEBI. Here’s how it works:
Daily Mark-to-Market (MTM) Settlement
At the end of each trading day, all open futures positions are adjusted to reflect the day’s settlement price. This process ensures that any gains or losses due to price fluctuations are settled on a daily basis. If the market moves in favour of your position, your account is credited; if it moves against you, your account is debited accordingly. This is done to ensure that traders have enough margin in their Share India trading account to cover the potential losses from their open positions.
You can check your Mark-to-Market (MTM) settlement statement on Share India’s trading platform to track daily MTM adjustments, margins used, and any outstanding positions.
To access it:
- Login to your Share India trading account (via app or web).
- Navigate to the ‘Reports’ section from the menu bar.
- Look for ‘Daily MTM Bill’ under the ‘Reports’ section.
Final Settlement (on Expiry)
- If the contract is held till expiry, it is compulsorily settled.
- In India, stock futures are physically settled (you either deliver shares or receive them).
- Index futures are cash-settled (profit/loss is adjusted in your trading account).
Physical vs. Cash Settlement
- Stock Futures: If you are holding a long position, you must take delivery of shares. If you are short, you must deliver shares.
- Index Futures: No delivery happens; only cash adjustment based on the final closing price.
For further assistance, traders can contact Share India Support at 1800 203 0303 or support@shareindia.com.