Liquidity Issue for Bank nifty Oct2021 expiry.

F&O
1

I have calendar spread and even if my trade is in profit, I am unable to close it due to liquidity issue or huge slippage.

What should be my strategy, if i close my calendar strike (Oct expiry, example 36800 BUY) which are in loss first than I will have negative margin. Will it cause me huge penalty.

May I request for community help, as I am new with option trading.

@siva @ShubhS9

2

Hi guys,

Please advise to my queries.

@siva @ShubhS9

3

You should close the short option first if you don’t have sufficient margin.

However, this could be a risk if the long option is not liquid as you may not get a good price for your long leg.

4

There will be less liquidity than as usual as you are trading near month options.