Comment on ZT-Position Conversion

chandru mehta commented on 07 Jan 2017, 03:30 PM

Nitin ji

i cant send the screen shot since its not available on PI now .

My question again for clarification is :

If i change / convert from mis to nrml in FNO does the amount at point of conversion becomes a loss ? and the point of conversion is afresh ? a new transaction , Then what is the point of converting ? I thought converting is to carry forward overnight so as to make the deal profitable over the next day / days .

Am i right ?

Yesterday i shorted tata steel 8000 shares FNO at 419.50 at 15:00 hours in MIS , since market closes by 15:19 hours the price went up by a 1 rs 421.5 and it was reporting a loss of 8000 rs , i took the decision of converting the trade to carry forward to the next day in an anticipation for the price to go below , I converted to deal to NRML and it showed me the following position

a) TATA STEEL JAN FNO MIS : LOSS 8000 RS
b) TATA STEEL JAN FNO NRML LOSS 8000 RS

c) my question : is the loss carried forward from MIS to NRML ? . Or these are two different transactions
– transaction MIS loss is booked and for the day even if the deal is carried forward to NRML as it is reflected in the contract notes that i got
– ideally that is not right losses cannot be booked since i have taken the deal for futures by conversion
– that means if i dispose of the shares next day at a price of 418.50 at profit of 1 rs ie 8000 my transaction would be Rs 8000 loss on conversion ( and ) rs 8000 profit next day on sale . ( net net zero ? )
= that means even though i bought the share at 419.50 and sold it next day at 418.50 i am charged loss for converting it at rs 421.50 from MIS TO NRML ? is that right ? or the entry would be reversed in the next day contract notes ?

can you please guide and correct my understanding .

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