What are the profits and losses in case of a stock futures position ?
The profits and losses would depend upon the difference between the price at which the position is opened and the price at which it is closed.Let an investor have a long position of one November Stock “A” Futures @ 430. If the investor square up his position by selling November Stock “A” futures @ 450, the profit would be Rs. 20 per share. In case, the investor squares up his position by selling November Stock “A” futures @ 400, the loss would be Rs. 30 per share.
