Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
05 Nov 2019, 10:47 AM
Saurabh,
1. On Wednesday, when the margin requirement goes up, you can square off the position at the prevailing market price and you will receive the premium. If you don’t square off, our RMS team will close the position due to margin shortfall.
2. Only after Thursday 3.30 PM, if your position remains open and you don’t have the margins in your account, we will use the CTM option where you will lose the premium(the intrinsic value of the contract).