As told by you that physical delivery is not allowed . so , the broker RMS team will square off the positions in the last week of the expiry ; if not done by the trader himself . ======================== My question is : Suppose ; I sell 1 call option and sell 1 put option of the “xyz scrip” . Now , as per the above scenario , my physical liability virtually becomes nil zero ; even though I let them go for the physical . BUT , the RMS team squares off my call option position and could not sqareoff the put option position due to human / machine / technical error or no volume etc ; ============ Now , in the above case ; why the trader has to bear the risk / loss / damage etc ; if any … ? ==== Awaiting for the reply … Thk u .
@HSL,
Nowhere have we mentioned that we don’t allow physical delivery. We’ve explained our physical delivery policy in detail here.
All your queries are answered in the policy post already.
yes . but I am talking about the scenario wherein : there is not sufficient balance in the client account and the RMS team squares off my call option position and could not sqareoff the put option position due to human / machine / technical error or no volume etc ; ============ Now , in the above case ; why the trader has to bear the risk / loss / damage etc ; if any … ? ==== Awaiting for the reply … Thk u .
Hey, if you post a question on this forum, its understood that its done with the intention of seeking a reply. There’s no need to close all your posts with this line.
Your question is too vague to answer.
Margins will be applied at applicable rates for the positions you hold. Its immaterial if you hold offsetting positions and/or naked positions.
You yourself are claiming that margins are insufficient, how can a broker allow you to carry forward a position then?
Please raise this with your specific broker. We wouldn’t be able to answer for how errors are handles. If you are trading with Zerodha, please raise a support ticket here.