Corporate actions including bonus, rights, mergers/demergers, dividends, splits, amalgamation, and consolidations will lead to adjustments in the futures and options contracts of the primary stock.
The basis for any adjustment for corporate actions shall be such that the value of the position of the market participants, on the cum and ex-dates for the corporate action, shall continue to remain the same as far as possible. These adjustments will cause variations in base price, market lot, and option strike values based on the adjustment parameters. In several scenarios, adjustments could lead to change in the date of contract expiry, i.e., the contract might be closed before the expiry date and the adjusted contracts will be traded. The adjustments will be carried out according to the type of corporate action involved. Also note, that adjustments for corporate actions would be applied on all the open positions.
The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.
The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor.
The adjusted futures base price shall be arrived at by dividing the old futures price by the adjustment factor.
The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor.
Why is there a mismatch of profit and loss and the quantity of my open positions on InstaTrade and the Neo App/Web?
When I have squared off my positions, why are they still reflecting as an open positions on InstaTrade?
Why was the InstaTrade square-off order rejected?
If I modify or cancel my InstaTrade orders from the Neo App/Web, will it update on InstaTrade as well?