How long can we hold MIS?
Table of Contents
- 1 How long can we hold MIS?
- 2 Can we hold MIS share?
- 3 Can I hold CNC order next day?
- 4 What happens when futures expire?
- 5 What happens on F&O expiry day?
- 6 How long can I hold CNC shares?
- 7 When do the banknifty futures contracts expire?
- 8 What is the permitted lot size for futures and options contracts?
How long can we hold MIS?
They are available for maybe 2–3 months in advance (the later ones are there but are illiquid). So if you’ve bought Nifty futures at a low, then you can hold on for 2–3 months till the expiry, and then sell and go home with the profit!
Can we hold Nifty option till expiry?
Simple answer is Yes. You can short it, and let it expire. You will end up either making profit if it expires worthless (OTM out of the money) or incur a loss in case the option goes ITM in the money which will also depend on the price you have sold at.
But every time you trade using MIS/CO, other than the risk of losing money due to leverage, you carry an added risk of not being able to square off your positions due to the stock hitting either upper or lower circuit. You can end up with a potentially large overnight and auction risk on positions taken with leverage.
Can we hold Bank Nifty futures?
Like the Nifty, those bullish on banks can buy Bank Nifty futures comprising 30 shares, or buy a call option on Bank Nifty. Bears can similarly short or sell Bank Nifty futures or buy a put option on the index.
Can I hold CNC order next day?
If you want to buy a stock and want to hold it for more than two days, then you need to use the CNC order type. CNC code does not restrict you from selling the stock the same day if desired. But the sell quantity cannot be more than the buy quantity. There is no penalty if you sell the shares on the same day.
Can we hold Nifty for delivery?
A call option on Nifty gives a buyer the right, but not the obligation, to buy the index at a predetermined price during a specified time period. Similarly, a Nifty put gives its buyer the right to sell the index. A seller of the options is obliged to give or take delivery of Nifty from the buyers.
What happens when futures expire?
Upon expiration of the futures contract, the clearinghouse matches the holder of a long contract against the holder of a short position. The holder of the long position must place the entire value of the contract with the clearinghouse to take delivery of the asset.
Can I convert MIS to CNC?
You will be allowed to convert MIS positions to CNC/NRML only if you have sufficient margins in your account. Click on the ‘Options’ button and click on convert. Note: You will not be allowed to convert CO to NRML/CNC or MIS and vice versa.
What happens on F&O expiry day?
On the expiry day, the contracts are settled (or simply get expired in case of Options). So, the settlement value of each contract is tied to the closing price of the stock on the last day. Why it affects stock prices: Futures and Options contracts derive their value from their underlying stocks or indices.
Can I carry forward mis order?
MIS Orders can be converted into delivery or carry forward trades if 100\% margin is available. With MIS orders, all brokers give you a higher margin, so you can buy more shares compared to delivery trades. Start your investment journey with India’s number one discount broker – Zerodha.
You could hold stock in your demat account or in physical form as long as you want. Some people keep it for 1 days while others keep it for 20 – 30 years.
What are the day minimum/maximum price ranges applicable for Nifty 50 futures?
There are no day minimum/maximum price ranges applicable for Nifty 50 futures contracts. However, in order to prevent erroneous order entry by trading members, operating ranges are kept at +/- 10 \%.
When do the banknifty futures contracts expire?
BANKNIFTY futures contracts expire on the last Thursday of the expiry month. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. The value of the futures contracts on BANKNIFTY may not be less than Rs. 5 lakhs at the time of introduction.
When do options expire in NIFTY 50?
Nifty 50 options monthly contracts expire on the last Thursday of the expiry month and weekly contracts expire on every Thursday of the week. If the last Thursday is a trading holiday, the contracts expire on the previous trading day. 1. The Strike scheme for all short term expiries (near, mid and far months) Index Options is:
What is the permitted lot size for futures and options contracts?
The permitted lot size for futures contracts & options contracts shall be the same for a given underlying or such lot size as may be stipulated by the Exchange from time to time. The price step in respect of Nifty 50 options contracts is Re.0.05.