Forgot to Square-off on Expiry.

Hi guys,

I bought 1 lot of MCX Natural Gas (October series) @ price of 180 yesterday. The expiry was yesterday i.e., 25th October 2011 and I forgot to square-off the same. I did not realize that yesterday was expiry, otherwise I would have squared it off. The Natural gas closed at 182 yesterday.

Today, when I checked balance, the margin was still blocked.

I am worried.

What happens to the unclosed positions. I have no intention of taking delivery. Also, there is not sufficient funds in my trading a/c.

I have never been in such situation.

Will there be any penalty for not honouring delivery. If yes, what would be the penal amount.

Today, Natural gas prices are up. Will it push up the penalty, if any?

How long will it take to release the margin.


Worried.

Reply Quick.

Dear Friend

no need to worry. there is no delivery in NG. ur transaction wd be squared off with y'day closing..

regards

Good, i was wondering how would one take delivery of n.gas :lol:

I am also new to commodities, thanks for info

And let not anyone try this mistake with Gold or Silver

Delivery will make one open a jewellery shop, depending the quantity bought before expiry :lol:

:lol:

Will he still be penalized?

Newbie Day-Trader said:

Will he still be penalized?

Click to expand...

hi Newbie

there is no penalty.

but what will happen if anybody has done same for zinc mini......and he do not want to give or take delievery.....will he be penalized.....if yes then how much...

I'll let anuragmunjal answer about whether delivery is a must for ZincMini.......

......but so far as penalty goes, it seems it CAN be 6.5% of DDR as per contract-specifications-PDFs on mcxindia.com for almost every instrument. For example - http://www.mcxindia.com/Uploads/Products/255/Zinc Mini January 2012 Contract.pdf (scroll down to "Penal Provisions")

Newbie Day-Trader said:

I'll let anuragmunjal answer about whether delivery is a must for ZincMini.......

......but so far as penalty goes, it seems it CAN be 6.5% of DDR as per contract-specifications-PDFs on mcxindia.com for almost every instrument. For example - http://www.mcxindia.com/Uploads/Products/255/Zinc Mini January 2012 Contract.pdf (scroll down to "Penal Provisions")

Click to expand...

hi Newbie

interesting link. I checked furthar and found that there is a penalty on NG too
I stand corrected.
speaking frm a practical perspective, I have invariably left positions open in both zinc (not zinc mini) on a few occasions as well as NG, but have never been offered or asked fr delivery.... always recieved a squareoff, though at times I have felt the squareoff price was a little away frm the mkt price...thought it may be due to the fluctuation in usd/inr.. that may be due to 'penalty'..
thnx fr sharing the link..


regards