How Commodity future trade will get settled? is it First in first out method?

Commodities Trading ⛽️💎🌎
1

Hi Team,

I wanted to know how commodity contract settlement will be done. is it first in first out method? For example I brought 3 silver lot of sep 2024 expiry on 15 May at different price. and on 16 may I square off just 1 position then how it will get settled? so my last buy or first buy will get settled with this square off position?

I also I noticed there is discrepancy in open/close position P/L and trader dairy P/L when it gets updated next day. Can explain more about it after this reconciliation for trade settlement is understood.

2

Hi @Laxmikant_Borde

Welcome to the MadeForTrade the Community.

If it is an intraday trade, then will be considered as a same-day position. In case of carry forward trade, it will be treated using the FIFO (First In First Out) method.

Regarding the P&L statement, you will see a average price of last traded Qty because you haven’t closed the position. Once you close the position, you will see the correct profit and loss.

Please drop us an email at our customer support at help@dhan.co if you still facing the discrepancy.