Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
Contracts settled through physical settlement are illiquid closer to expiry. Any losses arising out of liquidation of position(s) with margin shortfall by our RMS team have to be borne by the client. It is advisable for a client to square-off such positions on their own or add funds to carry the position(s) to expiry.
Please explain this point by example sir