Letting USD INR option expire

Should I let USD INR in the money (short or long) options expire? or should I get out of them before expiration? I am not sure whether there will be STT on USD INR. Please someone clarify this, because deep in the money USD INR options have sometimes wider spreads, so I believe it is better to let it expire. Thanks!

I am not the expert here, but I see no reason why you should not leave it till expiry

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Even I am new to this, that’s why I have doubt about letting DEEP IN THE MONEY options expire and getting STT charges on them.

No need to fear STT

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There is no STT applicable on Currency Options and these Options are cash settled as well. So you can let them expire ITM.

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Thanks

Thanks for clearing my doubts!

Thanks I also searching same answer

If I am selling far OTM at 0.0025 (say 100 lots) (USDINR) and let it expire. So will i get profit of 100 *0.0025 ?? Or 0.0025 will be considered as 0

OTM Options expire worthless and you get to keep the premium received ie. 0.0025 * 100 * 1000 = 250 (- Brokerage and other charges)

If I let it expire my buy side brokerage won’t be charged. Right?

Right.

Hi @ShubhS9 I have sell position in USDINR strike which is ITM now and if i let it expire tomorrow, what will happen?
e.g. USDINR OCT 83 CE Avg price 0.4275 and LTP 0.2200.

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Currency options are cash settlement, so even if the option expires ITM, you don’t have to give or take delivery of Dollars.

The final settlement happens according to the RBI Reference Rate on the expiry day. This is announced around 1:30 PM and is available on RBI, FBIL, NSE and BSE website.

If the option expires ITM, it’ll be settled according to this reference rate and the difference between settlement price and your average selling price will be the P&L.