Futures Trading,stock futures

What is Futures Trading ?

In futures trading, you take buy/sell positions in index or stock(s) contracts expiring in different months. If, during the course of the contract life, the price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss.

To take the buy/sell position on index/stock futures, you have to place certain % of order value as margin. With futures trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

On which exchanges will I be able to buy and sell in futures market?

National Stock Exchange of India Ltd. (NSE).

How is futures trading different from margin trading?

While buy/sell transactions in margin segment have to be squared off on the same day, buy/sell position in the futures segment can be continued till the expiry of the respective contract and squared off any time during the contract life.

Margin positions can even be converted to delivery if you have the requisite trading limits in case of buy positions and required number of shares in your DP in case of sell position. There is no such facility available in case of futures position, since all futures transactions are cash settled as per the current regulations. If you wish to convert your future positions into delivery position, you will have to first square off your transaction in future market and then take cash position in cash market.

Another important difference is the availability of even index contracts in futures trading. You can even buy/sell NIFTY in case of futures in NSE, whereas in case of margin, you can take positions only in stocks.

Which stocks are eligible for futures trading? Why is the stock list restricted to specific scrips only?

At present, we have enabled selected stocks for trading in the futures segment. Only those stocks, which meet the criteria on liquidity and volume have been considered for futures trading.

How is the futures contract defined?

ACC future contract expiring on 27th Feb, 2009 is defined as "Fut-ACC-27-Feb-2009". Wherein "Fut" stands for Futures as derivatives product, "ACC" for underlying stock and "27-Feb-2009" for expiry date.

What is an "Underlying" and how is it different than "Contract"?

An index or stock enabled for trading on futures is called an "Underlying" e.g. NIFTY (index) and ACC (stock). There may be various tradable contract for the same underlying based on its different expiration period. For example Fut - ACC - 27 Feb 2009, Fut - ACC - 27 Mar 2009 and Fut - ACC - 27 Apr 2009 are "contracts" available for trading in futures having ACC as "underlying".

Can I short sell the shares in futures segment (i.e. sell shares which I do not hold in DP)?

Yes, you can short sell the shares in futures segment. There is no block on your holdings in the demat account.

How much margin would be blocked on placing the futures order?

Initially, margin is blocked at the applicable margin percentage of the order value. For market orders, margin is blocked considering the order price as the last traded price of the contract. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order.

Is the margin % uniform for all stocks?

It may not be so. Margin percentage may differ from stock to stock based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective stock besides the general market conditions. Normally index futures would attract less margin than the stock futures due to comparatively less volatile in nature. But all contracts within the same underlying would attract same margin %.

Can margin be changed during the life of contract?

Yes, margin % can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and 25% margin is taken for the same. But later on due to the increased volatility in the prices, the margin % is increased to 30%. In that scenario, you will have to allocate additional funds to continue with open position. Otherwise it may come in MTM loop and squared off because of insufficient margin. It is advisable to keep higher allocation to safeguard the open position from such events.

What is meant by 'squaring off ' a position? What is a cover order?

Squaring off a position means closing out a futures position. For example, if you have futures buy position of 500 Reliance expiring on 27th Feb 2009, squaring off this position would mean taking sell position in 500 Reliance expiring on 27th Feb 2009 on or prior to 27th Feb 2009. The order placed for squaring off an open position is called a cover order.

Is margin blocked on all future orders?

No. Margin is blocked only on future orders, which results into increased risk exposure. For calculating the margin at order level, value of all buy orders and sell orders (in the same underlying-group) is arrived at . Margin is levied on the higher of two i.e. if buy orders value is higher than sell order value, only buy orders will be margined and vice versa. In other words, margin is levied at the maximum marginable order value in the same underlying.

For example, you have placed the following buy and sell orders.

Contract Details Buy Orders Sell Orders

Qty Rate Order Value Qty Rate Order Value

Fut - ACC- 27 Feb 2009 100 100 10000

Fut - ACC- 26 Mar 2009 100 155 15500 200 160 32000

Fut - ACC- 29 Apr 2009 100 16 16300

Total 200 25500 300 48300

As mentions above, the higher of buy and sell order value is margined. In the above given example, sell order value is greater than buy order value. Hence margin would be levied at specified margin % on Rs. 48300.

What happens if buy or sell orders are placed when there is some open position also in the same underlying?

In such case, first the marginable buy/sell order quantity has to be arrived at. Marginable buy order qty is arrived at by deducting the open net sell position at underlying-group level from the buy order quantity at underlying-group level. Similarly marginable sell order qty is arrived at by deducting the open net buy position at underlying-group level from the sell order quantity at underlying-group level. Marginable buy / sell order value is then arrived at by multiplying the respective buy / sell order weighted average price with marginable buy / sell quantity. For order level margin, marginable buy order value and marginable sell order value would be compared and higher of two would be margined.

For example, there is an open sell position of 100 shares in "Fut - ACC- 29 Apr 2009". Marginable buy and sell order quantity would be 100 and 300 respectively. Marginable buy and sell order value would be Rs. 12750 and Rs. 48300 respectively.

How is the initial margin (IM) on open position is maintained?

The same margin % applicable for orders will be levied at position level also. Position level margin is arrived at by applying the IM% on the value of net open position.

For example, you have open buy position in Fut - ACC- 26 Mar 2009 for 100 shares @ 150 and IM % for ACC is 25%. In that case, margin at position level would be 15000 * 25% = 3750/-. Moreover, benefit of calendar spread margin may also be available to you in case of spread position.

What is meant by calendar spread?

Calendar spread means risk off-setting positions in contracts expiring on different dates in the same underlying. For example, you take buy position for 200 shares in Fut - ACC- 26 Mar 2009 @ 150 and sell position for 100 shares in Fut - ACC- 29 Apr 2009 @160. 100 buy position in Fut - ACC- 26 Mar 2009 and 100 sell position in Fut - ACC- 29 Apr 2009 forms a spread against each other and hence called spread position.This spread position would be levied spread margin % for margin calculation instead of IM%. In this example, the balance 100 shares buy position in Fut - ACC- 26 Mar 2009 would be non-spread position and would attract initial margin.

How is the margin calculation done in case of calendar spread?

Spread position value is calculated by multiplying the weighted average price of position in far month contract and spread position quantity. Spread margin % is then applied to spread position value to arrive at spread margin.

In the above mentioned example margin position of 100 shares in Future - ACC- 26 Mar 2009 will be subjected to IM% and 100 spread position quantity would attract spread margin %. However, you will able to view only overall margin figure on open position page. Assuming IM and spread margin at 20% and 10% respectively, overall margin to be calculated as follows:

(a) Spread Margin

100*160*10%

Rs. 1600

(b) Non-Spread Margin

100*150*20%

Rs. 3000

a+b

Rs. 4600

Can spread position be formed among all the contracts in existence?

Only those contracts, which meet the criteria on liquidity and volume will be considered for spread positions. Technically, the stocks having low impact cost are included in spread definition. Separate margin is maintained and displayed for spread and non-spread contracts.

Lets assume that Future - ACC- 27 Feb 2009 and Future - ACC- 26 Mar 2009 are included in spread definition and Future - ACC- 29 Apr 2009 is kept out of spread definition. If you take buy position for 200 in Future - ACC- 27 Feb 2009 and sell position for 100 in Future - ACC- 26 Mar 2009, 100 buy position and 100 sell position would form spread. If you take buy position for 200 in Future - ACC- 26 Mar 2009 and sell position for 100 in Future - ACC- 29 Apr 2009, it will not form spread and margin at IM% would be levied on both 200 buy and 100 sell position.

The same rule applies even at order level. If you place buy order for 100 in Future - ACC- 27 Feb 2009 and sell order for 100 in Future - ACC- 26 Mar 2009, order having larger value would be margined. If you place buy order for 100 in Future - ACC- 26 Mar 2009 and sell order for 100 in Future - ACC- 29 Apr 2009, both buy order and sell order would be margined at IM%.

7 days prior to the expiry of the contract, IWTL will remove the expiring contract from the spread benefit.

At this stage the client will have to provide complete margin required on the positions taken in the near month contract (expiring one). If limit is found insufficient then the position may come into the intra day MTM loop.

Is there any impact on the limit on execution of a buy/sale order?

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin.

If it is an execution of a cover order (order which would result into square off of an existing open position), the following impact would be factored into the limits:

a) Release of margin blocked on the open position so squared up.

b) Effect of profit & loss on the square off of such a transaction.

If an execution of an order resulting into building up spread position, impact on limits would be in terms of release of differential margin.

For example, you are taking an open buy position for 100 shares in Future - ACC- 27 Feb 2009 @ 150 and IM is 20%. Rs 3000/- would be blocked as an initial margin. Thereafter you take a sell position for 100 shares in Future - ACC- 26 Mar 2009 @ 160 and spread margin is 10%. Hence the execution of Future - ACC- 26 Mar 2009 order is resulting into spread position. As explained above, margin required would be 100*160*10% = 1600/- now. Hence the excess margin of Rs 1400/- (3000-1600) would be released and added into your trading limits.

Continuing the above example, if you place an sell order for 100 shares in Future - ACC- 27 Feb 2009 @ 170, margin of Rs. 3400/- would be required to place this order. This margin would be required despite being a cover order to square off the open position in the same contract. Reason for the same is that the order now being placed by you would result into the increased risk exposure since the buy position of 100 shares in Futures - ACC - 27 Feb 2009 has already been considered as position building up spread position. If buy position of 100 shares in Futures - ACC - 27 Feb 2009 is squared off, sell position of 100 shares in Future - ACC- 26 Mar 2009 @ 160 would become non-spread position and subjected to margin at 20 % IM.

How to square off open position which is part of spread position and there is not enough trading limits to place a cover order?

In such a scenario, you will have to square off both buy as well sell position forming spread position. Facility to place such an orders is available in open futures Position page against the respective net position at underlying - group level in the form of a link called "Joint square off". This joint square off link is different than square off link available against each contract position. On clicking the same, position in all contracts within spread definition would be displayed. You can then specify the quantity for any two positions. One has to be buy and other should be sell. Your orders will go at market rate.

What is meant by EOD MTM (End of Day - Mark To Market) process?

EOD MTM on daily basis is a mandatory requirement in case of futures. Every day the settlement of open futures position will take place at the closing price of the day. The base price as shown in the Open Position - Futures page is compared with the closing price and difference is cash settled. In case of profit in EOD MTM, limits are increased by the profit amount and in case of loss, limits are reduced to that extent. Next day the position would be carried forward at the previous trading day closing price at which last EOD MTM was run. Closing price for all the contracts are provided by exchange after making necessary adjustment for abnormal price fluctuations. It is different than LTP.

What would be the effect of EOD MTM on margin blocked at position level?

Yes, EOD MTM does have its impact on margin at position level. Margin is re-calculated at the closing price at which EOD MTM was run and differential margin is blocked or released as the case may be. For margin calculation, the presentsame IM% and spread margin % is taken. To provide sufficient margin on open position after EOD MTM, ensure that suffecient allocation is available under F&O segment. You must visit the allocation amount for F&O on daily basis and allocate further if present allocation is found insufficient.

Due to daily MTM and payin/payout, allocation amount for F&O may come down over a period of time and because of the same, open position may fall in MTM loop and may get squared off unless you allocate fresh amount for F&O. Payin amount is debited from allocation you make for F&O but payout credit is always given in your clear balance. . What is meant by "Split of Contract"?

Seven calender days prior to the expiry of contract, open position of that contract would be taken out of spread definition and subjected to normal IM margin %. Position in such separated contracts would be shown separately. Limits would be reduced appropriately to ensure the IM% on near month contract. If limits are falling short to provide the same, the margin available in a group from which the near month contract was moved will also be utilised to make good the short fall. After moving the near month contract from the existing group to separate group, margin for the existing group will be re-calculated and limits would be reduced appropriately.

For example, you take buy position for 100 shares in Future - ACC- 27 Feb 2009 @ 150 and sell position for 100 shares in Future - ACC- 26 Mar 2009 @ 160. 100 buy position and 100 sell position would form spread. At 10% spread margin, margin blocked is Rs 1600/-. IM is 20%. Now position in Future - ACC- 27 Feb 2009 is taken out of spread. Following would be the margin requirement.

a. Limits

Rs 20000

b. Margin on Future - ACC- 27 Feb 2009 - Group A

100*150*20%

Rs3000.00

c. Remaining limits

(a-b)

Rs. 17000

d. Margin on Future - ACC- 26 Mar 2009 - Group B

100*160*20%

Rs 3200

e. Remaining limits

(c)-(d - 1600)

Rs 15400.

Is there any "no-delivery period" concept in futures?

There is no "no-delivery period" concept in futures. Even if stock is in no-delivery period, trading in futures will be as usual. There will not be any no-delivery period as it is in equity market.

What is Options Trading?

In options trading, you take buy/sell positions in index or stock(s) contracts expiring in different months with various Strike Price. If, during the course of the contract life, the price moves in your favor, you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

What is a Call?

Call is the Right but not the obligation to purchase the underlying Asset at the specified strike price by paying a premium.

The Buyer of a Call has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.What is a Put?

Put is the Right but not the obligation to sell the underlying Asset at the specified strike price by paying a premium.

The Buyer of a Put has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

What is a strike Price?

It is the Price at which the underlying Asset is Agreed to be Bought or sold.

What is a premium?

Premium is the downpayment the Buyer of Call or Put is required to make for entering the options agreement.

. What is a European option?

These options give the holder the right, but not the obligation, to buy or sell the underlying instrument only on the expiry date. This means that the option cannot be exercised early. Settlement is based on a particular strike price at expiration. Currently, in India only index options are European in nature.

. What is an American Option?

These options give the holder the right, but not the obligation, to buy or sell the underlying instrument on or before the expiry date. This means that the option can be exercised early.

On which exchanges will I be able to buy and sell in Options market?

To begin with, Nsestocktips.com offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE).

How is Options trading different from Futures trading?

In case of Futures the Buyer has an unlimited loss or profit potential whereas the buyer of an option has an unlimited profit and Limited downside. The Seller of a Futures has an Unlimited loss or profit potential but the seller of an option has a Limited profit but Unlimited Downside.

How is Options Contract Defined?

An American Put ACC Options expiring on 30 May 2009 with a strike price of 150 is described as OPT-ACC-30-May-2009-150-PA.

OPT denotes Option, ACC is the underlying, 30 may 2009 is the expiry date of the contract, 150 is the strike price and PA denotes it is an American Put option.

C would denote Call and E would denote European.

Would Different Margin percentage be applicable to Different underlying Stocks?

Yes, it would levy different margin percentages depending on the Stock and market volatility on different stocks as it feels is necessary for Risk mitigation.

Thus all ACC stock options would be marginable say at 30%, whereas all BHEL options would be marginable say at 25%.

Can margin be changed during the life of contract?

How is margin calculated on Buy orders in Option?

Buy orders irrespective of whether it is a Call or a put, is margined only to the extent of the Premium payable on the order. is a different contractFor e.g. If you place a Buy order in OPT-ACC-30-May-2009-150-PA for 1500 quantity at a Limit price of 20 would attract margin of

Quantity * Price at Rs 30,000/-.

Would In-the-Money or Out-of-Money be considered for Margin calculation in case of Sell Orders?

Yes, In-the-Money or Out-of-Money would be considered while calculating the Margin on Sell orders. In case of In the Money, the seller of the option would be required to bring in additional amount equal to the difference between CMP and the Strike price in case of Call and difference between Strike price and the CMP in case of Put. In case of Out of money, the seller of the Option is given the benefit and would be required to bring in lesser amount equal to difference between Strike price and the CMP in case of Call and

difference between CMP and the Strike price in case of Put.

The Margin so arrived is compared with a Minimum Margin (SOMC margin) i.e the Short option margin Percentage, the higher of the two percentages is taken into account.

Would the Premium to be received be considered for Marginable sell orders?

No, Premium benefit will not be given at the time of placing Marginable sell orders.

Once the order is executed the benefit of the Premium is withdrawn since the Premium is now a crystallized entry for which you would get the Payout on the Indicated payout date. Now the entire margin amount is blocked from the limits.The following Illustration shows how margin is calculated on sell orders (Applicable to both Call and Put orders)

You place a sell order in OPT-ACC-30-May-2009-150-CA, for 3000 quantity at a limit price of 20/-

Current Market price of ACC is 140.

Initial margin on ACC is 30%.

The Buyer Out of the Money in this case and the seller gets benefit of this.

(a) Margin

3000 * (150*30% - (150-140)) = Rs 105000

Margin on Order would be =Rs 105000

Is the separate Margin Blocked for Buy and sell Orders?

No, margin is blocked on the order, which attracts higher Margin out of the Buy or Sell order.

If you have placed both a buy and sell order in the same contract Margin blocked would be the maximum of the two orders.Illustration

As in the above illustration the sell order attracts a margin of

(a) Rs 45000/-.

If you place a Buy order in the same Contract OPT-ACC-30-May-2009-150-CA 1500 at Rs 20/- it would attract margin of

(b) Rs 30,000/-.

Margin blocked would be the higher of the two margins (a) or (b) i.e. Rs 45,000/-.

Is margin blocked on all Options Orders?

No. Margin is blocked only on orders, which result in an Increased Risk exposure. Margin is not recovered from an order, which is cover in nature. However in case of buy cover order where the premium exceeds the margin blocked, extra margin is required for placing the order. If a Position of opposite nature is present then the Order is reduced by the opposite position, if the opposite position is greater than the order, then the order is not margined at all. For e.g.

a) if you have a Buy position of 4500 in OPT-STABAN-25-Jul-2009-210-CA, and you place a sell order of 3000 then the sell order becomes non-marginable.

b) If you have a sell position in OPT-NIFTY-27-May-2004-1700-CA, and the margin blocked is Rs.45,500.00 and a cover buy order is placed which requires total premium of Rs.65000.00, then extra margin to the extent of Rs. 14500.00 (65000-45500) is required.

What happens if buy or sell orders are placed when there is some open position also in the same contract?

In both cases buy and Sell, the Marginable Buy order or Marginable Sell order is arrived at the Contract level. Marginable Buy order is calculated by deducting Net Sell Position from the Total Buy orders

Marginable Sell order is calculated by Deducting Net Buy Position from the Total Sell orders

Margin is recovered only on the Marginable Buy/Sell order Quantity.

Can I Exercise My Buy (Call/Put) Option?

Yes, in case of an American option you can place an exercise request upto the Open (Call/Put) buy position anytime except on the Last date of the contract. In case of European Options you don't have the option to exercise. As soon as the request is placed you can see the status of the request in the exercise book.

You can also place an exercise request for less than the open positions.

Is there a specific time when I place my exercise request?

Yes, you can place exercise request at any time from 10:00 am to 4:15 Pm, i.e. when the exercise market is open. You cannot place an exercise request when the exercise market is closed.

Can I exercise my Buy (Call/Put) Option on the Expiry day?

No. On the Expiry day of the Contract anyhow the exchange would be automatically exercising the option, exercise request is not allowed to be placed on the last day.

What will happen if I do not place an exercise Request till the last date?

In case you donot place an exercise request the Exchange would automatically exercise the (Call/Put) Buy position in case the Position is In-the-Money.

Where Do I place the Exercise Request?

The Open position book has a Link against Buy positions for Placing Exercise Request.

Click on the Link to place the Exercise request.

Can I modify or cancel my exercise request?

Yes, the link for Modify or cancel appears against the request for exercise in the Exercise Book.

How many exercise requests can I place at a time?

You can place only one exercise request at a time upto the open positions. You can either modify or cancel the existing request.

What is the Effect of Exercise?

In case of exercise, placed by you or exercised by the exchange, the exercise request is accepted only if the Position is In-the-Money. The profit on exercise is reflected in the Cash Projections and is added to the Limits. The realized profit on the contract is also reflected in the Portfolio page.

Is exercise quantity considered for Margin calculation?

Yes, The exercised quantity is reduced from the open positions in the Marginable sell order quantity calculation. Hence the sell order placement would be marginable if the quantity of sell order exceeds the difference between the executed Buy position and the exercise request quantity.

Is part exercise possible by the exchange?

No, the quantity exercised by you is either completely accepted or completed rejected

What happens if the exercise is not accepted by the Exchange?

If the Exercise is not accepted by the exchange at the end of the day, the Request is marked as Rejected at the end of the day, so that you can place a fresh Exercise request the next day.

What is assignment?

In case you have a Sell position, you may be assigned the contract i.e. you will have to Buy the Underlying in case of Put and sell the Underlying in case of Call. However since options are currently cash settled you would have to pay or receive the Money.

How do I know I have been assigned?

The Assignment book will reflect the assigned quantity in the contract; the Limits page will also accordingly reflect the Payin and the Payout dates on which the assignment obligation is payable.

Is part Assignment possible?

Yes, there can be part Assignment.

Do I have any control over Assignment?

No, You have no control over Assignment since it is initiated by the exchange.

The Assignment process is completely decided by the exchange; hence it is not necessary that you will be assigned even if the position is In-the-money.

Is there a Daily EOD MTM just like Futures?

No, there is no daily EOD MTM in case of options like in case of futures.

Is MTM done in case of options?

Yes, but it is applicable only in case of Short Positions i.e. Sell Call and Sell Put.

What is the Basis of MTM in case of Sell Call and what happens in the MTM process?

As soon as you place a Sell call order, which results in a position, a Trigger price is calculated which is displayed in the Open positions book. Whenever the Underlying price of the shares goes above the Trigger price in case of Sell Call, the Contract would be in the MTM loop. First the Additional margin recalculated as per the new scenario due to price rise is blocked; if Additional margin is found to be insufficient then the orders in the same contract are cancelled. If both these measures fail, then the position is squared off by the Nsestocktips.com.com.

What is the Basis of MTM in case of Sell Put and what happens in the MTM process?

As soon as you place a Sell Put order, which results in a position, a Trigger price is calculated which is displayed in the Open positions book. Whenever the Underlying price of the shares goes below the Trigger price in case of Sell Put, the Contract would be in the MTM loop. First the Additional margin recalculated as per the new scenario due to price fall is blocked; if Additional margin is found to be insufficient then the orders in the same contract are cancelled. If both these measures fail, then the position is squared off by the Nsestocktips.com.com.

If limits are found to be insufficient is the whole position sent for square off in both cases of sell call and sell put?

No, Square off is done in both cases in lot size of the contract. On acceptance of the square off placed, the new trigger price is calculated and whole process as explained above for sell call and sell put is repeated. This goes on till either sufficient margin is available or the complete position is squared off whichever is earlier.

What happens if I donot square off the transaction till the last day?

The position will be marked as closed off and the entry will appear in the open positions as Closed and the same is not exercised or assigned.

How is brokerage calculated in case of options?

Brokerage is calculated as a percentage of the Strike price plus the premium of the order value.

Settlement Obligation

What kind of settlement obligation will I have in Options?

1. Brokerage: Any Transaction you enter into will attract brokerage. Brokerage is debited to your account at the end of the day.

2. Premium payable or Receivable

3. Profit on Exercise

4. Loss on assignment

. When will the obligation amount be debited or credited in my Bank Account?

Assuming you place a transaction on day T, Options obligation will be settled as per the following table

Condition Obligation Settlement

Option Premium Receivable T+1

Option Premium Payable T

Exercise Profit in case of Stock T+3

Exercise Profit in case of Index T+1

Assignment Loss in case of Stock T+2

Assignment Loss in case of Index T

Brokerage T

. On T+1 day I have a payin for a particular trade date and also payout for a different trade date? Will payin and payout be run separately?

No, if payin or payout falls on the same date, the amount is internally set off and only the net result payin or payout will be debited or credited to your bank account.