Dear Friends,
What i observered have created a fear for re-entering a position of same stock even after square-off.
This is what i saw:
I purchased futures of ABC company at price suppose: 200/-
Price rose to 250/- and yet to square off, when it shows me MTM profit as 50/-
I square off and get a nice 50 bucks profit.
Now starts the drama !!!
The price fell to 100/- and starts rising from there.
I re-purchase the shares at 100/- but here it shows me, i have a MTM loss of 100 Rs !!! As the shares value now starts increasing from 100/- my loss reduces.
I am utterly confused. I did squared off in the first transaction, then why does the system compare with the earlier price??
Pardon me, if i missing something, and again beg an apology in advance. But please help me to understand this !!
Thank You once again.
EDIT:
Additionally the quantities purchased before and after are added as well.
What i observered have created a fear for re-entering a position of same stock even after square-off.
This is what i saw:
I purchased futures of ABC company at price suppose: 200/-
Price rose to 250/- and yet to square off, when it shows me MTM profit as 50/-
I square off and get a nice 50 bucks profit.
Now starts the drama !!!
The price fell to 100/- and starts rising from there.
I re-purchase the shares at 100/- but here it shows me, i have a MTM loss of 100 Rs !!! As the shares value now starts increasing from 100/- my loss reduces.
I am utterly confused. I did squared off in the first transaction, then why does the system compare with the earlier price??
Pardon me, if i missing something, and again beg an apology in advance. But please help me to understand this !!
Thank You once again.
EDIT:
Additionally the quantities purchased before and after are added as well.