Feature Date Settlement For Free

For Futures Contracts The final settlement price of the contract will be the delivery settlement value. For example, consider you hold a long futures position of 1 lot of 200 shares of XYZ company till the expiry at ? 2000 each (as on the contract date). Then the settlement value will be ? 4,00,000 (2000 200) .

The settlement date is the date when a trade is final, and the buyer must make payment to the seller while the seller delivers the assets to the buyer. The settlement date for stocks and bonds is usually two business days after the execution date (T+2).

Futures contracts can be traded purely for profit, as long as the trade is closed before expiration. Many futures contracts expire on the third Friday of the month, but contracts do vary so check the contract specifications of any and all contracts before trading them.

As such, if the contract is not acted upon within the expiry date, it simply expires. The premium that you paid to buy the option is forfeited by the seller. You don't have to pay anything else. You can buy another contract that cancels out your futures contract.

Deliverable futures contracts are the forward contracts to buy or sell a certain underlying instrument with actual delivery of the underlying instrument occurring. Settlement occurs 30 days after the contract is purchased.

The three-day rule helps maintain an orderly stock market and has implications for dividend investors. When trading stocks, settlement refers to the official transfer of securities from the buyer's account to the seller's account.

Settlement prices of the contract months other than A) shall be set every trading day by adding / subtracting the latest Contract Spread Price in the auction trading session, excluding the contracts concluded in the Night Session, on the relevant trading day from the Settlement Price of the Leading Contract Month; or