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  #1  
Old 19th October 2008, 06:45 PM
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Default Stuck in Mini-Nifty Futures



Hello,
I am new to this forum. I am just looking a solution to my problem. My broker insisted me to buy a mini-nifty future oct 2008 contract when the Nifty was at 4000 and he bought on my behalf. I did not have much knowledge about this concept. Now today the nifty is at 3070 and i ve come to know that i am losing approx. 20,000. I dont know what to do know. Shall I buy puts on nifty to hedge or to exit from this mini-nifty future.
Anyone please throw some light.


Thanks
Kapil
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  #2  
Old 19th October 2008, 09:03 PM
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Oh my god! how can broker do that, without your consent!

Now that you have lost that money, I suggest don't close the position but keep Stoploss at 3030.

Once you see 3500 on NIFTY move your stoploss to 3400

and after that with every 100 point rise of NIFTY keep moving your stoploss!

Nifty 3500 your Stoploss 3400
Nifty 3600 your Stoploss 3500
Nifty 3700 your Stoploss 3600
Nifty 3750 your Stoploss 3650

If the way I see it and with will of GOD, you should be able to go till 3600-3700 in coming days and reduce your loss

Last edited by man4urheart : 19th October 2008 at 09:05 PM.
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  #3  
Old 19th October 2008, 09:12 PM
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I m very thankful to you, u tried to help me to resolve my prob which the broker still couldn't do.

regards,
Kapil
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  #4  
Old 20th October 2008, 09:39 AM
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Quote:
Originally Posted by man4urheart View Post
Oh my god! how can broker do that, without your consent!
I don't think the broker did that without consent.

From what I understand kapil1311 didn't fully understand the product before the position was opened.

================

@kapil1311

It will be very difficult to recover your losses now.

The best you can do is to minimize further losses.

There may be another 500 points downside in the Nifty, so it's your decision

if you want to hold your position and hope for a recovery;

or

you want to close your position and take no additional losses.

================

Besides the strategy suggested by Mandeep, what you can do, is to rollover your position for 6 months and hope for a recovery.

On October expiry, you can sell your October futures and buy December futures...the furthest lot available.

Again at the end of December, you can buy the February futures.

Once the FII selling stops, Nifty may recover some of its losses and may bounce back 500-600 points.

If you want to rollover your position, make sure you have enough margin with your broker, so that he isn't forced to close your position.
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