What is option settlement?

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

Settlement is the process by which the terms of an option contract are settled between the parties involved, either through the exchange of shares or cash. Since all option contracts in India are European in nature, they can be exercised only on expiry. Therefore, the settlement date for exercising the contracts is the expiry date.

Topic: Options Settlement: How Are Call & Put Option Contracts Settled? Article

Comments

Add a public comment...

Find more questions on this topic

Do options settle overnight?
Do options settle in clearing house funds?
Do options settle next day?
How are options settled?
What is the options contract settlement date?
Are options cash settled in India?

Ask Your Question