@nithin @siva @Sensibull
At expiry today I was supposed to make around 60 thousand rupees. But because I had chosen MIS instead of NRML as my order type my position got squared off at 3:25 by the RMS systems and my profits just remained 30 thousand rupees. If it was not for choosing MIS but NRML my positions would be settled at the settlement price and i would have made that 60 thousand rupees is it?
Hey, you will need to ensure that you choose the product type NRML if you do not want the position to be squared off by the system.
If NRML was chosen, the contract would have been cash settled if it was an Index option and the settlement would happen based on the Intrinsic value if the contract ended ITM and if profitable, the money would have been credited to your account. So yes, the position would have been cash-settled by the exchange at its Intrinsic value.
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How come the prices had 50% higher value just 5 mins before market closing?
The position sizing was very large and per point move for me would be close to 1800 rupees the market would up by 15 points in the last 5 minutes of trade.
Ohhh ohk ohk got it.
Will there be any additional charges for letting a contract to expire (Cash Settled)? Also when I sell and buy the brokerage will be 40, will it differ if I let it expire?
If your long option position expires ITM, the exchange charges STT at 0.125% on the intrinsic value. There won’t be any additional STT it is a short position, as STT is already paid when you sell the option.
Brokerage will be applicable if the position expires ITM. If it is OTM, it will expire worthless and no brokerage will be applicable.
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