Option Trading on Expiry Day

I am new to derivative trading, i wanted to know what will happen if i forget to close the position on expiry day or assume that i can’t close the position due to liquidity on expiry day. What will be the scenario.

In such case, compulsory physical delivery takes place provided you maintain sufficient margin. More on this here.

Stocks - Physical delivery

Index - No problem, its just squared off

1 Like

I hope you have read varsity before doing trading in derivatives.


Straight & Clear Answer, However, I would also like to know what if i don’t have sufficient balance for phy. delivery. i am planning to trade USDINR ON EXPIRY & looks like i don’t need to bother since it’s not stock.

Yes. Currency Derivative segment is cash settled on expiry.