What happens if i take short position in MIS and there are no buyers for OTM options at the end of the day? Will i have to pay the penalty for having no buyers?
As you have short position and contract expiring worthless, you no need to buy back the contract before the expiry. Your entire sell premium will be your profit and there is no charges from the exchange or from broker.
How it is possible nagarajuji. I am new in this field could you please explain about it in details
He is asking about MIS position which has to be squared off everyday… I guess you would have to pay 5% margin shortfall penalty…