Turnover Statements

Why is there a difference between my profit and loss statement and turnover statement in futures and options?

A turnover statement shows only the total value of trades executed, meaning the buying and selling volume. In contrast, a Profit & Loss (P&L) statement shows the actual profit or loss after considering all costs, charges, and expenses. In short, turnover reflects trading activity, while P&L reflects real earnings from that activity.

Additionally, if a client trades in April or May expiry contracts of the next financial year during the month of March, the turnover statement includes only the positions that are closed within that financial year.

However, the P&L statement summarizes bank pay-ins and pay-outs, including MTM adjustments. Due to this difference in reporting, variations may appear between the turnover and P&L statements.

Example:

• A client buys 1 lot of NIFTY April Futures in March at ₹22,000.
• Lot size = 65
• Contract value = ₹14,30,000

Scenario in March:

• Position is not squared off in March and is carried forward.

• Since the trade is still open:

  1. Turnover Statement (March)- Does not include this trade, because no sell has happened yet.
  2. P&L Statement (March)- Shows daily MTM profit or loss based on NIFTY price movement.

Example:

• NIFTY closes at 22,200 on month-end
• MTM profit = 200 × 65 = ₹13,000

So:

• P&L shows ₹13,000 profit
• Turnover shows ₹0 for this trade

When You Square Off in April:

• The sell happens in April.

• Now:

  1. Turnover for April increases
  2. Final profit/loss is adjusted
  3. Bank pay-in / pay-out happen