I have sold an OTM option which is going to be 0 on expiry. What will happen if i did not square off it till expiry?
someone has told me that if I don’t square off the position of OTM options which is gone 0 on expiry, the broker will square off them self and levy fine to me.
is this true?
today on 12-09-23 OTM options of fin nifty closed at 0.05. so if I would have held the short position will it be exercised or it will be squared off by the broker?
Nope since the contract is expiring worthless there shall be no fine or squaring off from the broker.
Since the OTM contracts expire worthless they shall not be exercised by the broker.
You can refer to the above link shared by Meher.
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