Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
26 Jun 2019, 04:29 PM
Hi
Hypothetical question – Let’s assume I have 1 lot Buy position in JETAIRWAYS JUN Future contract. On the day of expiry, I see that Cash market is quoting at 70 while Future is quoting at 60. I do not hold any JETAIRWAYS shares nor do I intend to take delivery.
What happens if I sell shares equal to 1 lot in cash market and do not cover either positions. Does Future Buy and Cash Sell positions net off ? Or do I have to deliver shares for cash market sell and take delivery of shares in futures market?