Trades in the Futures And Options

CLEARING BANKS

Funds Settlement takes place through clearing Banks. For the purpose of settlement all clearing members are required to open a separate ban k account with NSCCL designated clearing bank for Futures and Options segment. The clearing and settlement process comprises of the following three main activities.

  1. CLEARING
  2. SETTLEMENT
  3. RISK MANAGEMENT.

TABLE 1: PROPRIETARY POSITION OF TRADING MEMBER MADANBHAI ON DAY 1.

Trading member Madan bhai trades in the futures and options segment for himself and two of his clients. The table shows his proprietary position. Note: A buy position 200 @ 1000 means 200 units bought at the rate of Rs. 1000

Trading Member

Buy

Sell
Madan bhai    
Proprietary

200 @

400 (5)
Position

1000

1010
TABLE 2: CLIENT POSITION OFTRADING MEMBER MADANBHAI ON DAY 1

 

Trading member Madan Bhai trades in the futures and options segment for himself and two of his clients. The table shows his client position:

Trading Member                  Buy               Sell                 Sell                Buy

Madanbhai                           Open            Close              Open            Close

Client Position

Client A                           400 @           200 @

1109″ ioocT

600 @          200 @

llOO’            1099

 

TABLE 3: PROPRIETARY POSITION OF TRADING MEMBER MADANBHAI ON DAY 2

Assume that the position on Day 1 is carried forward to the next trading day and the following trades are also executed for himself and two of his clients. A buy position 200 @ 1000 means 200 units bought at the rate of 1000.

     
Trading Member Madan bhai Buy Sell
Proprietary 200 @ 400 @
Position 1000 1010
TABLE 4: CLIENT POSITION OFTRADING MEMBER MADANBHAI ON DAY2

 

 

 

Trading member Madan Bhai trades in the futures and options segment for himself and two of his clients. The table shows his client position on Day 2:

Trading Member                 Buy              Sell                  Sell                Buy

Madanbhai                           Open            Close               Open            Close

Client Position

400 @          200 @

1109            1000

600 @          400 @

1100        1099

 

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