We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.

No key takeaways from this video 🙂


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  1. Varun says:

    What will happen to my balance/trade if I don’t close by position during end of the expiry day

  2. Udhav says:

    Hi Karthik,
    As it is said in the video, that as we approach the expiry date of the futures contract, the margin required increases. Therefore, will the margin become equal to the total contract size of our position on the day of the expiry, since we have to ensure physical delivery on the expiry date?

    • Karthik Rangappa says:

      Yes, it goes up considerably, almost to the extent on contract value, depending on the contract under consideration.

  3. Vasanth says:

    I sold IGL 400 PE @ 3 and currently somewhere at 9 due to sharp fall. Lets say if it goes further down to 380 and by the expiry how the settlement happens exactly. Will I get the stock price at 380 or 400 as I sold the 400 contract. Also how the losses will be adjusted. Please explain with some examples.

    • Karthik Rangappa says:

      Yes, since its an ITM option, short PUT will result in taking delivery of the stock. Hence you need to have the necessary margins in your account.

  4. Lirson Ronghang says:

    Please explain me about currency option settlement. For example,

    I SOLD 78 Put , 1 lot
    My question is that, how much I need to pay for settlement on expiry.

  5. Deepali says:

    Hi Karthik,
    Can you help to understand last sentence from video “If you are short seller you have to make sure you have those share in your DP account” in futures perspective ?

    • Karthik Rangappa says:

      It means that upon settlement, you will have to deliver shares from your demat account, for which you need to have shares in your DP.

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