What happens if the F&O position is not squared off until the end of the session on expiry day?

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If a position is not squared off due to any reason, in case of a

Buy position - User will receive the shares in his demat and he will have to pay the entire amount required. In case the user is not able to fulfill the obligation of paying the amount then the shares will be sold by Upstox to recover the same.
Short position - User will need to deliver the shares from his demat account and if the user doesn't have the same, the shares will be auctioned to close the settlement process.

Additionally, any losses or penalties arising from the entire settlement process are borne by the client.

Topic: Physical Settlement in Equity Derivatives (Futures & Options) Article

2 Comments

2. alok

| Link|December 31, 2023 1:52:12 PMReply

i had sold a ce of nmdc strike price 207 for a preimium of 2.35 however on exipry i could not exit my position what will be the penalty

1. shailesh

| Link|November 24, 2021 2:46:45 PMReply

sorry for my English but you'll understand what is my issue.

I buy an F&O of SAIL share at 1.75 prices, expire date 25-Nov-2021 on Cash on Carry Overnight form, From purchased date to till yesterday SAIL was on BAN, from last 2 days ban lifted I'm trying to sell on 0.05 price but no buyer is available, tomorrow is last day and maybe tomorrow also no buyer for this, so in this case what will happen? Feel like a very tough time for me because I don't know now what to do now if not sell tomorrow?

1.1. Avinash Katore

| Link|September 27, 2022 10:28:26 AM

Dont worry until your contract is not "in the money".

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