Option Trading on Expiry Day

F&O
1

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.

2

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

3

Stocks - Physical delivery

Index - No problem, its just squared off

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4

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

2 Likes
5

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.

6

Yes. Currency Derivative segment is cash settled on expiry.