Author Topic: What happens to the margin after roll over?  (Read 2577 times)

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Offline M.S.Narang

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What happens to the margin after roll over?
« on: March 03, 2015, 10:29:24 PM »

I just lost Rs 10/- in margin rollover. I traded Nickel last month, and it gave a closing of 866-870 and since march was running at 10/- premium I lost 10/- in nickel, where does this money go? I kept track of prices at LME and rollover had no impact on LME user's. I also checked live prices on Kitco metal's and USA market also shows no impact of rollover. Why does MCX does not close premium on last day instead increases it?

Isn't this a huge scam by MCX? If I am correct MCX makes it monies by trading comissions.

Please correct me if I am wrong.

Regards MSN

Offline srigopal Bhattad

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Re: What happens to the margin after roll over?
« Reply #1 on: June 10, 2015, 11:39:23 PM »
Difference of trade don't go to MCX.

Trade is being started with premium. If one is buying other is shorting. So, shorter earn the premium and longer pay the premium if holded till end of the expiry.

so trade is being always with a buyer and seller only. not with exchange.

If you have any more doubt you can ask me