What exactly can happen in Auction?

F&O
1

I have a short P.E ITM position which I did not exit
e.g.
Strike price = 7000, , 1 lot = 150, Premium received = 90 Rs

Since I did not exit the position, I will have to take the delivery of shares as I have a short P.E position.
Does an auction happen in this case? or I I need to buy 125 shares (1 lot) at 7000 Rs

What will happen if an auction happens in this case?

2

Maybe this can help.

1 Like
3

You are all over the forum today, like a race car :racing_car:

1 Like
4

Thanks. So auctions take place only in cases of “short delivery,” not when you don’t have the required amount in your account, resulting in a daily penalty charge. Is this correct?

1 Like
5

Yes Sir you are right.

You are welcome. Just helping out a fellow trader.