Hi Team @Dhan,
How MTM(Mark To Mark) works in MTF trading if positions are in losses?
Example :
Day 1 bought 1L worth of shares using MTF with account balance left with 10K and on 2nd Day positions are in looses of -30K for which my account balance shows -20K.
Case 1 : Positions are at entry Price
on 5th Day my positions are raised back to the entry price with no loss and no profit
- Will my account balance shows 10K or Zero?
Case 2 : Positions are at Profit
on 10th Day my holding positions are with profits of 20K.
- Will my account balance show 20K or 30K = Profit(20K) + Previous Margin(10K).
I would like to know process of these settlements on daily basis.
If I maintain huge margins in my account, will it be wiped off as per daily settlements if my positions are in losses or this will be temporary adjustments?
Thanks
