Is cash settlement of ITM Index options conditional on being able to pay for the underlying?

Does the exchange first see if i can pay NIFTY Price * Lot Size and then debit it and then credit the larger amount? I am planning to hold this option til expiry but I don’t have more money in my account, so I want to make sure I will receive the intrinsic value and not 0.

A second question is, will I receive the money before Friday’s trading day begins?

Hi @Aredith

  1. That won’t be an issue. The contract will be settled at intrinsic value by the exchange

  2. Contracts are settled after market close in expiry day. Any profits you’re making will be available for trading from next trading day.

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What’s the hardest part about being successful at F&O trading?

In my view, It is the ability to strike a fine balance between risk management like position sizing, overtrading, being overconfident (greed) and taking well calculated risks, being aware of our own biases, strengths, weaknesses, experience and eventually luck (fear) and doing this consistently.

This requires lot of patience, perseverance and discipline in our day to day life. That’s what makes F&O trading one of the toughest ways to make money.