What Is The Impact of Dividends on Average Rate for Open Positions in F&O ?

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If you hold open positions in Futures and Options (F&O), the impact of dividends will reflect differently based on the type of dividend and the segment (Futures or Options).

Extraordinary Dividends: Click here to see the impact of extraordinary dividends.

For Futures Open Positions, the earlier average rate will no longer be displayed in the trading platforms. Instead, the new open rate of the contract, calculated after deducting the extraordinary dividend from the settlement price, will appear as the average rate. 

To check the realised profits or losses, refer to the P/L statement in MyGeojit. 

For Options Open Positions, adjustments will result in new strike prices being shown in the trading platforms. After the ex-date, open options positions will initially show with a zero average price. However, the average price of the option contract can be obtained from the P/L statement in MyGeojit. Once trading starts in the new contract, the average price will begin appearing in the trading platforms.

Read More: What is the impact of corporate actions on F&O contracts?