Futures market involves every day Billing. Every trade is Billed by closing price for the day as counter- price. In this way, closed trades are billed and also open positions are billed on mark to market at closing price for the day. Now today’s closing price becomes reference price for the
next day.
next day.
BILLING ON EXPIRY DATE
Here all open positions will be squared at closing price of the spot market. Hence actual profits earned or losses incurred on closed trades as well as open positions are settled on day to day
basis. These are to be paid to the exchange on T + 1 basis.