What happens if there is an M2M (Mark-to-Market) loss on my position?
If your position incurs an M2M loss, the equivalent amount will be blocked from your account. This may affect your MTF (Margin Trading Facility) booking, as the blocked amount could reduce your available margin.
Related Articles
What is Mark to Market?
Mark-to-Market (MTM) is a daily settlement process in futures trading where profits or losses are calculated based on the change in the contract's settlement price compared to the previous day. These gains or losses are credited or debited from your ...
What is square off process in commodity market
The Square off process in the commodity market refers to the action of closing out an existing position or trade before the end of the trading day. This is done to lock in profit or minimize losses. Here is a list of different square off processes: ...
What happens in an FPO?
In a Follow-on Public Offering (FPO), a company issues additional shares to the public. Here’s what typically happens during an FPO: 1. Issue Price: The company often sets the issue price for the new shares lower than the current market price. This ...
What are bracket, cover and market order and how to place the order for the same?
1. Bracket Order Definition: A Bracket Order allows you to take an intraday position with additional exposure while being protected by a stop-loss order and a profit target. It involves three components: an entry order, a profit-taking order, and a ...
How auction affects the Portfolio and Profit & Loss?
Impact on Profit & Loss (P&L): Price Volatility: Auction Price: The price determined during an auction can be significantly different from the market price, impacting your P&L. If the auction price is higher or lower than expected, it can lead to ...