Comment on Zerodha - Margin Policies

Nithin Kamath commented on 05 Apr 2014, 09:13 PM

Nithy,

Futures have what is called as daily marked to market. So assuming you sold at Rs 100 and today it closes at 80, R 20 is paid to you as profit. Next day if it closes at Rs 75 you get paid Rs 5 because you again make a profit (since you are short, you make money when market goes down). If assuming the next day it goes to Rs 85 ( since you are short, u lose when market goes up), you have to now pay Rs 10. This process is called Marked to market.

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